Novanta (NASDAQ:NOVT) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Novanta to “Hold” from “Buy.” MarketBeat reports a consensus “Hold” rating from analysts, with an average price target of $180.
• Novanta shares opened at $142.55, while the company reported quarterly EPS of $0.81 and revenue of $257.71 million, exceeding analyst expectations; revenue rose 10.4% year over year.
• CEO Matthijs Glastra sold 6,500 shares worth approximately $1.05 million under a pre-arranged Rule 10b5-1 plan. Institutional investors own 98.35% of the company’s outstanding stock.

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

Other analysts have also recently issued reports about the company. Robert W. Baird set a $180.00 target price on Novanta in a research report on Tuesday, June 9th. Weiss Ratings reissued a "hold (c-)" rating on shares of Novanta in a research note on Wednesday, July 15th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $180.00.

Novanta Trading Up 2.6%

Shares of NASDAQ:NOVT opened at $142.55 on Friday. The company has a quick ratio of 2.69, a current ratio of 3.56 and a debt-to-equity ratio of 0.15. The company's 50-day moving average price is $154.33 and its 200 day moving average price is $140.67. The company has a market cap of $5.38 billion, a PE ratio of 103.30 and a beta of 1.67. Novanta has a fifty-two week low of $98.27 and a fifty-two week high of $171.85.

Novanta (NASDAQ:NOVT - Get Free Report) last posted its earnings results on Monday, May 11th. The technology company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.78 by $0.03. The firm had revenue of $257.71 million during the quarter, compared to analysts' expectations of $253.40 million. Novanta had a net margin of 5.35% and a return on equity of 12.06%. Novanta's quarterly revenue was up 10.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.74 EPS. Novanta has set its FY 2026 guidance at 3.500-3.650 EPS and its Q2 2026 guidance at 0.810-0.860 EPS. Sell-side analysts anticipate that Novanta will post 3.59 earnings per share for the current year.

Insider Buying and Selling at Novanta

In related 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 transaction of $1,047,345.00. Following the completion of the transaction, the chief executive officer owned 29,761 shares of the company's stock, valued at $4,795,389.93. This trade represents a 17.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Novanta

Hedge funds and other institutional investors have recently bought and sold shares of the business. Danske Bank A S acquired a new stake in Novanta during the 3rd quarter worth about $40,000. Allworth Financial LP boosted its holdings in shares of Novanta by 978.4% in the fourth quarter. Allworth Financial LP now owns 399 shares of the technology company's stock worth $47,000 after buying an additional 362 shares during the period. EverSource Wealth Advisors LLC raised its holdings in shares of Novanta by 120.1% during the fourth quarter. EverSource Wealth Advisors LLC now owns 427 shares of the technology company's stock valued at $51,000 after acquiring an additional 233 shares during the period. ANTIPODES PARTNERS Ltd acquired a new stake in Novanta during the 4th quarter valued at $53,000. Finally, Harbor Investment Advisory LLC acquired a new stake in Novanta during the 2nd quarter valued at $54,000. 98.35% of the stock is currently owned by institutional investors.

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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