Oct. 21 at 7:46 PM
Cognex Corporation shares rose on Tuesday after activist investor Engaged Capital disclosed a significant stake in the machine-vision systems maker and urged cost-cutting measures to boost its stock price.
Glenn Welling, Engaged Capital’s founder and chief investment officer, speaking at the 13D Monitor Active-Passive Investor Summit in New York, called on Cognex to reduce expenses and hire specialized cost consultants. He suggested that such actions could potentially help the company’s stock price nearly double within the next two years.
Welling did not specify the exact size of Engaged’s position but described it as one of the hedge fund’s largest holdings. He characterized Cognex as “an AI company without an AI valuation,” implying the stock remains undervalued compared with other artificial intelligence-focused firms. Reuters first reported Welling’s remarks.
$CGNX