A Cognex Corporation (NASDAQ:CGNX) insider increased their holdings by 493% last year
Insiders were net buyers of Cognex Corporation's (NASDAQ:CGNX ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Cognex
Cognex Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Dianne Parrotte for US$138k worth of shares, at about US$46.00 per share. So it's clear an insider wanted to buy, at around the current price, which is US$48.40. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Cognex share holders is that an insider was buying at near the current price. Dianne Parrotte was the only individual insider to buy during 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!
Cognex is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Cognex Insiders Are Selling The Stock
The last three months saw some Cognex insider selling. Non-Executive Director Patrick Alias divested only US$30k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
Insider Ownership Of Cognex
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Cognex insiders own 3.5% of the company, worth about US$292m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Cognex Insiders?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Cognex insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Cognex, you should check out this free report on analyst forecasts for the company.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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