Cognex Corporation (NASDAQ:CGNX) Declares Quarterly Dividend of $0.09

Key Points

• Cognex raised its quarterly dividend by 5.9%, from $0.085 to $0.09 per share. The dividend is payable December 3 to shareholders of record November 19, equivalent to a $0.36 annualized payout and 0.7% yield.
• The dividend appears well covered: Cognex’s payout ratio is 31.5%, and analysts expect a lower 17.6% ratio based on next year’s projected earnings.
• In its latest quarter, Cognex reported earnings of $0.53 per share, slightly above estimates, while revenue rose 13% year over year to $313.39 million, just below forecasts.

Cognex Corporation (NASDAQ:CGNX - Get Free Report) announced a quarterly dividend on Wednesday, November 4th. Investors of record on Thursday, November 19th will be given a dividend of $0.09 per share by the scientific and technical instruments company on Thursday, December 3rd. This represents a $0.36 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. This is a 5.9% increase from Cognex's previous quarterly dividend of $0.0850.

Cognex has decreased its dividend payment by an average of 0.3% annually over the last three years and has increased its dividend every year for the last 10 years. Cognex has a dividend payout ratio of 31.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cognex to earn $1.93 per share next year, which means the company should continue to be able to cover its $0.34 annual dividend with an expected future payout ratio of 17.6%.

Cognex Stock Down 8.7%

CGNX opened at $53.06 on Thursday. The firm has a market cap of $8.93 billion, a price-to-earnings ratio of 51.52 and a beta of 1.49. The company's 50-day moving average price is $59.65 and its 200 day moving average price is $57.96. Cognex has a fifty-two week low of $34.60 and a fifty-two week high of $72.88.

Cognex (NASDAQ:CGNX - Get Free Report) last issued its earnings results on Wednesday, November 4th. The scientific and technical instruments company reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.52 by $0.01. Cognex had a return on equity of 13.50% and a net margin of 16.05%. The firm had revenue of $313.39 million for the quarter, compared to analyst estimates of $313.62 million. During the same period last year, the company earned $0.33 earnings per share. The firm's revenue for the quarter was up 13.0% on a year-over-year basis. Research analysts anticipate that Cognex will post 1.68 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Citigroup reiterated a "neutral" rating and set a $74.00 price target (up from $72.00) on shares of Cognex in a research report on Friday, August 7th. The Goldman Sachs Group restated a "buy" rating and set a $91.00 price objective on shares of Cognex in a report on Friday, August 7th. Robert W. Baird decreased their target price on Cognex from $78.00 to $70.00 and set a "neutral" rating for the company in a research report on Wednesday, September 23rd. HSBC downgraded shares of Cognex from a "buy" rating to a "hold" rating and set a $65.00 price objective on the stock. in a research report on Monday, August 10th. Finally, DA Davidson reiterated a "neutral" rating and set a $65.00 price target on shares of Cognex in a report on Wednesday, September 23rd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Cognex has an average rating of "Moderate Buy" and an average target price of $75.57.

About Cognex

Cognex Corporation develops machine vision and industrial identification technologies that help manufacturers and businesses automate inspection, measurement, guidance, and tracking processes. Its systems use cameras, sensors, software, and artificial intelligence to analyze images and identify products, defects, components, and other objects.

The company's product portfolio includes vision systems, industrial cameras, vision sensors, barcode readers, optical character recognition tools, three-dimensional vision systems, and machine vision software.

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