Is Cognex Stock a Buy or Sell After a Director Dumped Shares Worth $128,000?
What this transaction means for investors
Cognex Board of Directors member Robert Willett’s sale of 2,148 shares is not a red flag. The transaction was part of Mr. Willett’s Rule 10b5-1 trading plan. A Rule 10b5-1 trading plan is often implemented by insiders to avoid accusations of making trades based on insider information.
Moreover, Mr. Willett holds over one million shares in Cognex stock options and restricted stock units that he can exercise to acquire more shares. This suggests he is not in a rush to sell.
Mr. Willett’s sale came at a time when Cognex shares were soaring. The stock hit a 52-week high of $59.88 the day before his transaction. Shares are up because Cognex’s business is doing well.
The company’s 2025 revenue rose 9% year over year to $994 million. Its machine vision technology is seeing strong demand as customers seek to use it for artificial intelligence.
However, the rise in Cognex’s stock price means its valuation is lofty with a price-to-earnings ratio exceeding 82. This suggests now is a good time for shareholders to sell, but it’s not the ideal moment to buy. Wait for the stock to drop before deciding to make a purchase.
Should you buy stock in Cognex right now?
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cognex. The Motley Fool has a disclosure policy.
Is Cognex Stock a Buy or Sell After a Director Dumped Shares Worth $128,000? was originally published by The Motley Fool
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