Is Cognex Stock a Buy or Sell After a Director Dumped Shares Worth $128,000?
Key Points
Director Robert Willett sold 2,148 shares for a total transaction value of approximately ~$128,000 on Feb. 13, 2026.
The transaction represented 11.97% of Mr. Willett's total holdings and fully drew down his direct common stock position.
The trade involved the exercise of 2,148 stock options immediately followed by a sale; direct holdings fell to zero while 15,804 shares remain held indirectly via trust.
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Director Robert Willett executed the sale of 2,148 shares of Cognex (NASDAQ:CGNX) via open-market disposition on Feb. 13, 2026, following an immediate option exercise; see SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 2,148 |
| Transaction value | ~$128,000 |
| Post-transaction shares (direct) | 0 |
| Post-transaction shares (indirect) | 15,804 |
| Post-transaction value (direct ownership) | ~$0 |
Transaction value based on SEC Form 4 weighted average purchase price ($59.50); post-transaction value based on Feb. 13, 2026 market close ($58.79).
Key questions
- How did the sale impact Robert Willett’s overall equity exposure to Cognex?
While the transaction reduced his direct common stock holdings to zero, Mr. Willett maintains exposure through 15,804 shares held indirectly via the Willett Parkhill Investment Trust and a substantial pool of 1,477,706 vested options that remain exercisable. - Was this transaction a direct sale or did it involve derivative mechanics?
The transaction was a derivative-based event, consisting of the exercise of 2,148 stock options immediately followed by the sale of an equivalent number of shares, consistent with liquidity management practices rather than a reduction in underlying economic exposure. - What portion of Mr. Willett’s holdings did this sale represent and what capacity remains?
The sale accounted for 11.97% of Mr. Willett’s pre-transaction total holdings and 100% of his direct common stock position, with indirect holdings and large option balances providing ongoing capacity for future transactions. - Does this transaction signal an exit or capacity-driven moderation in selling activity?
The disposition reflects the drawdown of available direct common shares, but with sizable derivative and indirect holdings remaining, Mr. Willett retains material exposure and the ability to increase or monetize equity interests in the future.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2/13/26) | $59.50 |
| Revenue (TTM) | $994.36 million |
| Net income (TTM) | $114.44 million |
| 1-year price change | 79.51% |
* 1-year performance calculated using Feb. 13, 2026 as the reference date.
Company snapshot
- Cognex offers machine vision systems, vision software, sensors, and image-based barcode readers for automation and inspection in manufacturing and logistics environments.
- It generates revenue by selling proprietary hardware and software solutions.
- The company serves customers in consumer electronics, automotive, pharmaceuticals, food and beverage, and other industrial sectors globally.
Cognex is a leading provider of machine vision products, enabling automation and quality control across diverse manufacturing and distribution industries. The company leverages advanced imaging and deep learning technologies to deliver high-precision inspection and identification solutions. Its established presence in key industrial verticals and focus on proprietary innovation underpin its competitive positioning in the automation technology market.
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.
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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.
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