Cognex Corporation (CGNX) Stock Analysis
Technology · Scientific & Technical Instruments
Sell if holding. At $55.97, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: international (non-U.S.) customers (67.0%); Concentration risk — Supplier: third-party contractor in Indonesia.
Cognex designs machine vision systems that automate inspection, identification and measurement of discrete items on assembly lines and distribution centers. It serves logistics, packaging, consumer electronics and automotive markets globally; those four segments represented ~85%... Read more
Sell if holding. At $55.97, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: international (non-U.S.) customers (67.0%); Concentration risk — Supplier: third-party contractor in Indonesia. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.8/10, high confidence.
Passes 4/7 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and earnings proximity 5d<=7d. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicinternational (non-U.S.) customers67%10-K Item 1A: 'In 2025, approximately 67% of our revenue was derived from customers located outside of the United States.'
- HIGHSupplierthird-party contractor in Indonesia10-K Item 1A: 'A significant portion of our products is manufactured by a third-party contractor located in Indonesia.'
Material Events(8-K, last 90d)
- 2026-02-19Item 4.01HIGHAuditor change: Grant Thornton LLP dismissed eff. Feb 13, 2026 after completing FY2025 audit; KPMG LLP selected as auditor for FY2026. No disagreement cited.SEC filing →
- 2026-02-17Item 5.02LOWBoard appointed Dr. Sami Atiya and Mr. Chris Donato as directors eff. March 2, 2026. Non-executive board appointments; no officer departures.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $55.97, A.R:R 0.4:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: international (non-U.S.) customers (67.0%); Concentration risk — Supplier: third-party contractor in Indonesia. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $52.25. Score 4.8/10, high confidence.
Take-profit target: $58.95 (+5.4% upside). Prior stop was $52.25. Stop-loss: $52.25.
Concentration risk — Geographic: international (non-U.S.) customers (67.0%); Concentration risk — Supplier: third-party contractor in Indonesia; Thin upside margin: 5.4%.
Cognex Corporation trades at a P/E of 81.6 (forward 36.1). TrendMatrix value score: 3.3/10. Verdict: Sell.
29 analysts cover CGNX with a consensus score of 3.9/5. Average price target: $66.
What does Cognex Corporation do?Cognex designs machine vision systems that automate inspection, identification and measurement of discrete items on...
Cognex designs machine vision systems that automate inspection, identification and measurement of discrete items on assembly lines and distribution centers. It serves logistics, packaging, consumer electronics and automotive markets globally; those four segments represented ~85% of 2025 revenue.