Cognex Corporation [CGNX] moved down -2.38: Why It’s Important

Cognex Corporation [NASDAQ: CGNX] loss -2.38% or -1.6 points to close at $65.54 with a heavy trading volume of 1591749 shares. The company report on July 29, 2020 that Cognex Reports Less-Than-Fabulous Results for the Second Quarter of 2020.

Cognex Corporation (NASDAQ:CGNX) today reported financial results for the second quarter of 2020. Table 1 below shows selected financial data for Q2-20 compared with Q2-19 and Q1-20, and for the six months ended June 28, 2020 compared with the same period in 2019. Notably, Cognex recorded significant restructuring and other charges, totaling over $42 million, in Q2-20 that reduced earnings for the quarter by $0.20 per diluted share.

Table 1.

It opened the trading session at $67.22, the shares rose to $67.945 and dropped to $65.15, the range by which the price of stock traded the whole day. The daily chart for CGNX points out that the company has recorded 25.41% gains over the past six months. However, it is still -86.19% lower than its most recent low trading price.

If we look at the average trading volume of 1.06M shares, CGNX reached to a volume of 1591749 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Cognex Corporation [CGNX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CGNX shares is $58.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CGNX stock is a recommendation set at 3.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Robert W. Baird have made an estimate for Cognex Corporation shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on June 02, 2020. While these analysts kept the previous recommendation, HSBC Securities raised their target price to Hold. The new note on the price target was released on May 26, 2020, representing the official price target for Cognex Corporation stock. Previously, the target price had yet another raise to $36, while Morgan Stanley analysts kept a Underweight rating on CGNX stock.

The Average True Range (ATR) for Cognex Corporation is set at 1.71, with the Price to Sales ratio for CGNX stock in the period of the last 12 months amounting to 16.56. The Price to Book ratio for the last quarter was 8.20, with the Price to Cash per share for the same quarter was set at 2.46. Price to Free Cash Flow for CGNX in the course of the last twelve months was 73.50 with Quick ratio for the last quarter at 4.10.

Trading performance analysis for CGNX stock

Cognex Corporation [CGNX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.00. With this latest performance, CGNX shares gained by 5.44% in over the last four-week period, additionally plugging by 25.41% over the last 6 months – not to mention a rise of 49.74% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CGNX stock in for the last two-week period is set at 57.02, with the RSI for the last a single of trading hit 50.08, and the three-weeks RSI is set at 56.71 for Cognex Corporation [CGNX]. The present Moving Average for the last 50 days of trading for this stock 61.15, while it was recorded at 67.23 for the last single week of trading, and 53.95 for the last 200 days.

Cognex Corporation [CGNX]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Cognex Corporation [CGNX] shares currently have an operating margin of +19.65 and a Gross Margin at +73.85. Cognex Corporation’s Net Margin is presently recorded at +28.10.

Return on Total Capital for CGNX is now 11.37, given the latest momentum, and Return on Invested Capital for the company is 16.29. Return on Equity for this stock inclined to 16.37, with Return on Assets sitting at 12.84. When it comes to the capital structure of this company, Cognex Corporation [CGNX] has a Total Debt to Total Equity ratio set at 1.33. Additionally, CGNX Total Debt to Total Capital is recorded at 1.31, with Total Debt to Total Assets ending up at 0.95. Long-Term Debt to Equity for the company is recorded at 0.91, with the Long-Term Debt to Total Capital now at 0.90.

Reflecting on the efficiency of the workforce at the company, Cognex Corporation [CGNX] managed to generate an average of $89,927 per employee. Receivables Turnover for the company is 6.16 with a Total Asset Turnover recorded at a value of 0.46.Cognex Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.10 and a Current Ratio set at 4.50.

Cognex Corporation [CGNX]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Cognex Corporation posted 0.24/share EPS, while the average EPS was predicted by analysts to be reported at 0.21/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 14.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CGNX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cognex Corporation go to 15.00%.

An analysis of insider ownership at Cognex Corporation [CGNX]

There are presently around $10,824 million, or 95.20% of CGNX stock, in the hands of institutional investors. The top three institutional holders of CGNX stocks are: BLACKROCK INC. with ownership of 16,783,199, which is approximately -2.309% of the company’s market cap and around 3.50% of the total institutional ownership; VANGUARD GROUP INC, holding 15,889,762 shares of the stock with an approximate value of $1.04 billion in CGNX stocks shares; and BANK OF NEW YORK MELLON CORP, currently with $821.79 million in CGNX stock with ownership of nearly -0.891% of the company’s market capitalization.

Positions in Cognex Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 199 institutional holders increased their position in Cognex Corporation [NASDAQ:CGNX] by around 12,223,760 shares. Additionally, 222 investors decreased positions by around 9,528,744 shares, while 68 investors held positions by with 143,399,534 shares. The mentioned changes placed institutional holdings at 165,152,038 shares, according to the latest SEC report filing. CGNX stock had 50 new institutional investments in for a total of 962,335 shares, while 70 institutional investors sold positions of 2,271,888 shares during the same period.

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