Novanta (NASDAQ:NOVT) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Novanta from “strong buy” to “hold,” contributing to an overall analyst consensus of “Hold” with a $194 price target.
• Novanta shares opened at $143.64, down 3.7%, with a market capitalization of approximately $5.43 billion and a P/E ratio of 92.08.
• The company exceeded quarterly expectations, reporting $0.89 in adjusted EPS versus an $0.83 estimate and revenue of $265.81 million, up 10.3% year over year; institutional investors own 98.35% of its stock.

Novanta (NASDAQ:NOVT - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday, Zacks reports.

NOVT has been the subject of several other reports. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Novanta in a report on Wednesday, July 15th. Robert W. Baird set a $194.00 price objective on shares of Novanta in a research report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Novanta from a "hold" rating to a "buy" rating in a research report on Sunday, August 9th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $194.00.

Novanta Stock Down 3.7%

NOVT opened at $143.64 on Tuesday. The stock has a fifty day moving average of $147.78 and a 200-day moving average of $145.09. The company has a market capitalization of $5.43 billion, a P/E ratio of 92.08 and a beta of 1.72. Novanta has a fifty-two week low of $98.27 and a fifty-two week high of $176.38. The company has a debt-to-equity ratio of 0.12, a quick ratio of 3.79 and a current ratio of 4.57.

Novanta (NASDAQ:NOVT - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.89 EPS for the quarter, beating the consensus estimate of $0.83 by $0.06. Novanta had a net margin of 6.00% and a return on equity of 10.83%. The business had revenue of $265.81 million for the quarter, compared to the consensus estimate of $262.30 million. During the same period in the prior year, the company posted $0.76 earnings per share. Novanta's revenue was up 10.3% compared to the same quarter last year. Novanta has set its FY 2026 guidance at 3.680-3.740 EPS and its Q3 2026 guidance at 0.950-1.000 EPS. On average, equities analysts expect that Novanta will post 3.7 EPS for the current year.

Hedge Funds Weigh In On Novanta

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio acquired a new stake in Novanta during the 2nd quarter worth about $34,000. Harbor Investment Advisory LLC bought a new stake in shares of Novanta during the 2nd quarter valued at about $54,000. Allworth Financial LP bought a new stake in shares of Novanta during the 2nd quarter valued at about $59,000. Integrated Wealth Concepts LLC acquired a new stake in Novanta during the second quarter worth approximately $63,000. Finally, Rockefeller Capital Management L.P. increased its holdings in Novanta by 155.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 662 shares of the technology company's stock worth $79,000 after purchasing an additional 403 shares in the last quarter. Institutional investors and hedge funds own 98.35% of the company's stock.

About Novanta

Novanta Inc NASDAQ: NOVT is a medical technology and advanced equipment company that develops components and subsystems used by original equipment manufacturers. Its technologies are designed for applications requiring precision motion, photonics, imaging, and other specialized capabilities, with a primary focus on healthcare and medical device markets.

The company's offerings include precision motion control systems, motors, pumps, encoders, laser sources, optical components, and beam-delivery systems.

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