Double up income position: Cognex Corporation (NASDAQ: CGNX)

On 12 March 2020, Cognex Corporation stock figure shut its day with plunged -1.04% and conclude at the price of $38.99 and a distance of -34.07% away from its 52 week- top value and changed 0.21% from its 52 week-lowest price value.  Throughout its latest trading session, Stock negotiated with the total exchanged volume of 2449153 shares. The average volume stands around 1063.37 shares. The average numbers of shares are traded in a security per day, during the recent 3-month period.  The stock has relative volume of 2.3. Relative volume is ratio between current volume and 3-month average value, intraday adjusted.

Cognex Corporation (CGNX) recently stated financial results for 2019. Table 1 below shows selected financial data for Q4-19 contrast with Q4-18 and Q3-19, and the year ended December 31, 2019 contrast with the year ended December 31, 2018. Notably, Cognex recorded discrete tax items in Q4-19 that together resulted in a tax benefit of $61M, or $0.35 per share.

Details of the Quarter

Statement of Operations Highlights – Fourth Quarter of 2019

Revenue reduced by 12% from Q4-18 and 7% from Q3-19. As predictable, revenue declined year-on-year in logistics, as a result of a major consumer delaying delivery of large orders for new sites until 2020, and Because of lower revenue from both the consumer electronics and automotive industries. Revenue declined on a sequential basis Because of the seasonal timing of revenue from consumer electronics.

Gross margin was 74% for Q4-19 contrast with 73% for Q4-18 and 74% for Q3-19.

Research, Development & Engineering (RD&E) expenses increased by 15% from Q4-18 and 17% from Q3-19. The increase in RD&E, both year-on-year and sequentially, reflects incremental costs associated with the company’s recent acquisition of Sualab and application engineering resources that were before focused on large deployments in consumer electronics.

Selling, General & Administrative (SG&A) expenses increased by 12% from Q4-18 and 15% from Q3-19. SG&A increased, both year-on-year and sequentially, Because of investments that improved and broadened the company’s sales channel, including incremental costs associated with Sualab, as well as higher stock-option and related expenses. Higher sales commissions also contributed to the sequential increase.

The effective tax rate was (250%) in Q4-19, 7% in Q4-18, and 12% in Q3-19. Not Including discrete tax adjustments, the tax rate was 18%, 8%, and 16%, respectively (tax adjustments are summarized in Exhibit 2). Notably, Cognex recorded discrete tax items in Q4-19 that together resulted in a tax benefit of $61M. The two largest components were a discrete tax benefit of $88M related to changes to the company’s corporate tax structure Because of legislation enacted by the European Union, and a discrete tax expense of $29M to move purchased intellectual property from Korea to certain other company subsidiaries.

To review the Cognex Corporation previous performance, look at its past history, which highlighted below: During last 5 trades the stock fixed almost -0.1431.  During last 30 days it showed the change of -0.2596. During last 3 month it remained at -0.2341. During last 1 year it moved at -0.2682. Along with these its (YTD) year to date performance is standing at -0.3042.

Scientific & Technical Instruments based company, Cognex Corporation’s latest closing price distance was -20.14% from the average-price of 200 days while it maintained a distance from the 50 Day Moving Average at -25.39% and -18.10% compared with the 20 Day Moving Average.

The stock price weekly volatility remained at -0.1431 while volatility is standing at -0.2596 for the month. A beta of 1.0 tells you that a stock has been going up and down with the overall stock market. A stock with a beta between 0.0 and 1.0 has smaller ups and downs. A beta greater than 1.0 has wider price swings. Stocks with a negative beta are moving opposite to the index. When you invest in a stock, you could lose all of your money – in some cases, more than you invested. Before you buy a stock, understand the risks and decide if they are risks you are comfortable taking.


James Emmons

James Emmons – Technology and Energy I am James Emmons I have completed my bachelor’s degree in Information Technology and a master’s degree in Business. I love to write about technology. I had three years of writing experience which include articles, web content, and blogs. I always love to play with work, in both my career and education.  I also had teaching experience of 5 years at the renowned university to teach business and technical writing and currently working as an instructor and training writer and designer. I am incredibly social, and I love to travel and explore the world.

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