Stock Analysis

Independent Director Eugene Banucci Just Sold A Bunch Of Shares In Cognex Corporation (NASDAQ:CGNX)

  •  Updated
NasdaqGS:CGNX
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Some Cognex Corporation (NASDAQ:CGNX) shareholders may be a little concerned to see that the Independent Director, Eugene Banucci, recently sold a substantial US$760k worth of stock at a price of US$75.95 per share. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

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Cognex Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Eugene Banucci was not the only time they sold Cognex shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$66.90 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$77.84. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 48% of Eugene Banucci's stake.

Insiders in Cognex didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:CGNX Insider Trading Volume December 15th 2020

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Does Cognex Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Cognex insiders own about US$587m worth of shares (which is 4.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Cognex Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Cognex makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cognex. While conducting our analysis, we found that Cognex has 1 warning sign and it would be unwise to ignore this.

Of course Cognex may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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What are the risks and opportunities for Cognex?

Cognex Corporation provides machine vision products that capture and analyze visual information in order to automate manufacturing and distribution tasks worldwide.

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Rewards

  • Earnings are forecast to grow 13.85% per year

Risks

No risks detected for CGNX from our risks checks.

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