Novanta (NASDAQ:NOVT) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Novanta from “hold” to “buy,” although the broader analyst consensus remains “Hold” with an average price target of $194.
• Novanta exceeded quarterly expectations, reporting $0.89 EPS versus the $0.83 consensus and revenue of $265.81 million versus $262.30 million; revenue increased 10.3% year over year.
• The stock opened at $166.37, with a $6.29 billion market capitalization and a 52-week range of $98.27 to $176.38. CEO Matthijs Glastra sold 6,500 shares under a pre-arranged Rule 10b5-1 plan, while institutional investors own 98.35% of the company.

Novanta (NASDAQ:NOVT - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Sunday.

Several other equities research analysts have also weighed in on the company. Weiss Ratings restated a "hold (c-)" rating on shares of Novanta in a report on Wednesday, July 15th. Robert W. Baird set a $194.00 price target on shares of Novanta in a research report on Friday. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $194.00.

Novanta Price Performance

NASDAQ NOVT opened at $166.37 on Friday. Novanta has a fifty-two week low of $98.27 and a fifty-two week high of $176.38. The stock's 50-day moving average is $154.08 and its two-hundred day moving average is $141.59. The firm has a market cap of $6.29 billion, a P/E ratio of 106.65 and a beta of 1.68. The company has a debt-to-equity ratio of 0.12, a current ratio of 4.57 and a quick ratio of 2.69.

Novanta (NASDAQ:NOVT - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.06. The company had revenue of $265.81 million during the quarter, compared to the consensus estimate of $262.30 million. Novanta had a return on equity of 10.83% and a net margin of 6.00%.The firm's revenue was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.76 EPS. 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, analysts anticipate that Novanta will post 3.7 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Matthijs Glastra sold 6,500 shares of the firm's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $161.13, for a total value of $1,047,345.00. Following the sale, the chief executive officer directly owned 29,761 shares of the company's stock, valued at approximately $4,795,389.93. This trade represents a 17.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Novanta

Hedge funds have recently added to or reduced their stakes in the business. Summit Creek Advisors LLC bought a new position in Novanta in the 2nd quarter worth approximately $6,350,000. Deutsche Bank AG bought a new stake in shares of Novanta in the second quarter valued at approximately $14,992,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Novanta in the second quarter worth $788,000. OneDigital Investment Advisors LLC acquired a new stake in shares of Novanta in the second quarter worth $947,000. Finally, Global Retirement Partners LLC bought a new position in Novanta during the second quarter worth $446,000. Institutional investors own 98.35% of the company's stock.

Novanta Company Profile

Novanta, Inc NASDAQ: NOVT is a global technology company that designs and manufactures precision components, subsystems and software used in advanced photonics and motion control applications. The company serves customers in the medical device and advanced industrial markets, supplying critical technologies for diagnostics and therapeutic systems, semiconductor and electronics manufacturing, and scientific instrumentation. Novanta's product portfolio includes laser control modules, optics, beam delivery systems, high-precision motors, actuators, stages, and fluidics solutions designed to meet stringent accuracy and reliability requirements.

Novanta's Photonics segment delivers laser and energy delivery components that enable minimally invasive surgical procedures and diagnostic imaging.

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