Morgan Stanley Cuts Cognex (CGNX) Price Target to $40.00

Cognex (NASDAQ:CGNX) had its target price reduced by research analysts at Morgan Stanley from $52.00 to $40.00 in a report issued on Tuesday. The firm currently has an “equal weight” rating on the scientific and technical instruments company’s stock. Morgan Stanley’s price target would indicate a potential downside of 7.94% from the stock’s current price.

Several other research firms also recently issued reports on CGNX. BidaskClub raised Cognex from a “hold” rating to a “buy” rating in a research note on Wednesday, September 26th. Zacks Investment Research downgraded Cognex from a “hold” rating to a “sell” rating in a research note on Wednesday, October 3rd. DA Davidson began coverage on Cognex in a research note on Tuesday, October 2nd. They issued a “neutral” rating and a $57.00 price objective for the company. Northcoast Research downgraded Cognex from a “buy” rating to a “neutral” rating and set a $54.00 price objective for the company. in a research note on Friday, August 24th. They noted that the move was a valuation call. Finally, ValuEngine raised Cognex from a “strong sell” rating to a “sell” rating in a research note on Tuesday, July 31st. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and four have issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $53.65.

NASDAQ CGNX traded up $1.48 during trading on Tuesday, hitting $43.45. 18,865 shares of the company’s stock were exchanged, compared to its average volume of 1,456,127. The company has a market cap of $7.09 billion, a price-to-earnings ratio of 30.27, a PEG ratio of 2.23 and a beta of 1.64. Cognex has a fifty-two week low of $36.16 and a fifty-two week high of $72.99.



Cognex (NASDAQ:CGNX) last issued its earnings results on Monday, October 29th. The scientific and technical instruments company reported $0.45 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.08. The firm had revenue of $232.22 million during the quarter, compared to the consensus estimate of $227.15 million. Cognex had a return on equity of 21.19% and a net margin of 18.52%. The business’s quarterly revenue was down 12.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.14 earnings per share. As a group, equities research analysts forecast that Cognex will post 1.19 EPS for the current year.

Cognex declared that its board has initiated a stock buyback plan on Monday, October 29th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the scientific and technical instruments company to buy up to 2.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

In other Cognex news, Director Jerry A. Schneider sold 5,000 shares of the stock in a transaction that occurred on Tuesday, September 11th. The shares were sold at an average price of $54.29, for a total transaction of $271,450.00. Following the completion of the sale, the director now owns 7,000 shares of the company’s stock, valued at approximately $380,030. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Anthony Sun sold 10,000 shares of the stock in a transaction that occurred on Thursday, September 13th. The shares were sold at an average price of $56.04, for a total transaction of $560,400.00. Following the sale, the director now directly owns 264,262 shares of the company’s stock, valued at approximately $14,809,242.48. The disclosure for this sale can be found here. Insiders have sold a total of 27,500 shares of company stock valued at $1,493,200 in the last three months. Insiders own 5.40% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in CGNX. Capital Analysts LLC increased its position in Cognex by 1,180.6% during the 2nd quarter. Capital Analysts LLC now owns 2,305 shares of the scientific and technical instruments company’s stock valued at $103,000 after purchasing an additional 2,125 shares during the period. CAPROCK Group Inc. acquired a new stake in Cognex during the 3rd quarter valued at approximately $221,000. Eastern Bank acquired a new stake in Cognex during the 2nd quarter valued at approximately $223,000. Chatham Capital Group Inc. acquired a new stake in Cognex during the 3rd quarter valued at approximately $232,000. Finally, Advisor Partners LLC increased its position in Cognex by 26.6% during the 2nd quarter. Advisor Partners LLC now owns 5,418 shares of the scientific and technical instruments company’s stock valued at $242,000 after purchasing an additional 1,140 shares during the period. 90.25% of the stock is owned by institutional investors and hedge funds.

Cognex Company Profile

Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate tasks primarily in manufacturing processes worldwide. The company offers machine vision products, which are used to automate the manufacturing and tracking of discrete items, such as mobile phones, aspirin bottles, and automobile tires by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process.

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