Investors Purchase High Volume of Cognex Call Options (NASDAQ:CGNX)

Key Points

• Unusual options activity: Investors bought 16,442 Cognex call options on Monday, nearly 10 times the normal daily volume, suggesting heightened bullish trading interest in the stock.
• Analyst sentiment remains positive overall: Recent coverage included higher price targets from several firms, with JPMorgan upgrading Cognex to overweight; the stock now carries a consensus rating of Moderate Buy and an average target of $70.43.
• Company fundamentals and stock performance are strong: Cognex beat earnings and revenue estimates in its latest quarter, and the shares rose 1.5% to $67.54 on above-average trading volume, near their 52-week high of $71.90.

Cognex Corporation (NASDAQ:CGNX - Get Free Report) was the recipient of some unusual options trading on Monday. Investors bought 16,442 call options on the company. This represents an increase of 981% compared to the typical daily volume of 1,521 call options.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Citigroup restated a "neutral" rating and issued a $68.00 price target (up from $60.00) on shares of Cognex in a research report on Friday, May 8th. Stephens increased their target price on Cognex from $65.00 to $75.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Weiss Ratings restated a "hold (c)" rating on shares of Cognex in a report on Friday, May 15th. JPMorgan Chase & Co. upgraded Cognex from a "neutral" rating to an "overweight" rating and boosted their target price for the stock from $65.00 to $75.00 in a research report on Tuesday, May 26th. Finally, Truist Financial set a $61.00 price target on Cognex and gave the company a "hold" rating in a research note on Friday, May 8th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $70.43.

Insider Buying and Selling at Cognex

In related news, VP Darren Marc Long sold 20,252 shares of Cognex stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $66.34, for a total value of $1,343,517.68. Following the completion of the sale, the vice president directly owned 3,990 shares in the company, valued at $264,696.60. This trade represents a 83.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark Fennell sold 64,873 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $67.05, for a total value of $4,349,734.65. Following the sale, the insider directly owned 11,263 shares of the company's stock, valued at $755,184.15. This represents a 85.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 224,847 shares of company stock worth $14,975,098. Insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On Cognex

Hedge funds and other institutional investors have recently bought and sold shares of the company. Cassaday & Co Wealth Management LLC acquired a new position in Cognex during the 1st quarter worth approximately $36,000. CIBC Private Wealth Group LLC grew its stake in shares of Cognex by 74.8% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 764 shares of the scientific and technical instruments company's stock worth $35,000 after acquiring an additional 327 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Cognex by 402.2% in the first quarter. Geneos Wealth Management Inc. now owns 919 shares of the scientific and technical instruments company's stock valued at $27,000 after purchasing an additional 736 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Cognex in the fourth quarter worth $39,000. Finally, Miller Global Investments LLC bought a new stake in shares of Cognex in the fourth quarter worth $39,000. Institutional investors and hedge funds own 88.12% of the company's stock.

Cognex Stock Up 1.5%

Shares of NASDAQ:CGNX traded up $0.98 during midday trading on Monday, reaching $67.54. 2,685,145 shares of the company were exchanged, compared to its average volume of 2,214,989. Cognex has a fifty-two week low of $31.42 and a fifty-two week high of $71.90. The stock has a fifty day simple moving average of $62.32 and a two-hundred day simple moving average of $51.37. The firm has a market cap of $11.24 billion, a PE ratio of 80.37 and a beta of 1.52.

Cognex (NASDAQ:CGNX - Get Free Report) last announced its earnings results on Wednesday, May 6th. The scientific and technical instruments company reported $0.34 earnings per share for the quarter, topping analysts' consensus estimates of $0.25 by $0.09. The firm had revenue of $268.44 million during the quarter, compared to analyst estimates of $245.98 million. Cognex had a net margin of 13.62% and a return on equity of 10.89%. The company's revenue for the quarter was up 24.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.14 EPS. Cognex has set its Q2 2026 guidance at 0.400-0.440 EPS. As a group, analysts forecast that Cognex will post 1.49 earnings per share for the current year.

Cognex Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Thursday, May 21st were given a dividend of $0.085 per share. This represents a $0.34 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, May 21st. Cognex's dividend payout ratio is currently 40.48%.

Cognex Company Profile

Cognex Corporation is a leading provider of machine vision systems, software, sensors and industrial barcode readers used to automate manufacturing, logistics and distribution processes. The company designs and develops vision-based products that help manufacturers and logistics operators inspect, identify and guide parts, assemblies and packaged goods in real time. Its solutions are applied in a broad range of industries, including automotive, electronics, semiconductor, pharmaceutical, food and beverage, and general manufacturing.

The company's product portfolio includes stand-alone vision systems, vision sensors and deep learning-based software platforms that enable automated inspection, quality control and traceability.

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