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Cognex stock rises after activist investor urges cost cutting

Published 21/10/2025, 19:40
© Reuters.
CGNX
2.03%

Investing.com -- Cognex Corporation (NASDAQ:CGNX) stock rose 4% Tuesday after activist investor Engaged Capital disclosed it has built a significant stake in the machine vision systems maker and is pushing for cost-cutting measures to boost the share price.

Engaged Capital’s founder and chief investment officer Glenn Welling, speaking at the 13D Monitor Active-Passive Investment Summit in New York, urged Cognex to reduce costs and employ cost consultants. Welling argued these measures could potentially help the company’s stock price nearly double within the next two years.

While Welling did not reveal the exact size of Engaged’s position in Cognex, he described it as one of the hedge fund’s largest holdings. The activist investor characterized Cognex as "an AI company without the AI valuation," suggesting the firm’s stock is undervalued relative to other artificial intelligence-focused companies.

Welling’s comments were first reported by Reuters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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