Novanta (NASDAQ:NOVT) Sets New 52-Week High - Still a Buy?

Key Points

• Novanta shares hit a new 52-week high, trading as high as $176.38 after the company reported second-quarter adjusted EPS of $0.89 and revenue of $265.8 million, both above analyst expectations. Revenue increased 10.3% year over year.
• Management provided strong forward guidance, projecting third-quarter revenue of approximately $300 million to $304 million and full-year 2026 EPS of $3.68 to $3.74, above consensus estimates.
• Despite the growth outlook, valuation remains a concern: Novanta trades at a high earnings multiple, while analysts maintain a consensus “Hold” rating with an average price target of $180.

Shares of Novanta Inc. (NASDAQ:NOVT - Get Free Report) reached a new 52-week high during trading on Friday . The company traded as high as $176.38 and last traded at $163.32, with a volume of 1280933 shares trading hands. The stock had previously closed at $153.12.

Key Headlines Impacting Novanta

Here are the key news stories impacting Novanta this week:

• Positive Sentiment: Novanta reported second-quarter 2026 adjusted earnings of $0.89 per share, exceeding the $0.83 analyst consensus and rising from $0.76 in the year-ago quarter. Revenue increased 10.3% year over year to $265.8 million, also topping expectations of $262.3 million. Novanta Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised or reaffirmed an upbeat outlook for the remainder of the year. Third-quarter EPS guidance of $0.95 to $1.00 is above the $0.94 consensus, while full-year EPS guidance of $3.68 to $3.74 exceeds the $3.59 analyst forecast. Novanta Announces Second-Quarter 2026 Results
• Positive Sentiment: Third-quarter revenue guidance of approximately $300 million to $304 million is substantially above the cited consensus estimate of $263.1 million, signaling strong expected growth and improving operating momentum. Novanta Q2 Earnings Snapshot
• Positive Sentiment: Management’s earnings call provided additional context on the quarterly performance and outlook, reinforcing investor confidence in Novanta’s growth trajectory. Novanta Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Despite the positive guidance, NOVT trades at a relatively high valuation, with a P/E ratio near 44, leaving the stock sensitive to any slowdown in growth or future guidance disappointments.

Wall Street Analysts Forecast Growth

NOVT has been the topic of several recent research reports. Wall Street Zen cut Novanta from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Robert W. Baird set a $180.00 price objective on Novanta in a research report on Tuesday, June 9th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Novanta in a research note on Wednesday, July 15th. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $180.00.

Novanta Trading Up 6.7%

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 is $153.93 and its 200-day moving average is $141.42. The stock has a market capitalization of $6.17 billion, a price-to-earnings ratio of 104.69 and a beta of 1.68.

Novanta (NASDAQ:NOVT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.06. The business had revenue of $265.81 million during the quarter, compared to analysts' expectations of $262.30 million. Novanta had a net margin of 6.00% and a return on equity of 11.96%. The business's revenue for the quarter 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. Research analysts anticipate that Novanta Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Matthijs Glastra sold 6,500 shares of the business's stock in a transaction dated Thursday, July 2nd. The shares were 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 in the company, valued at approximately $4,795,389.93. The trade was a 17.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On Novanta

A number of institutional investors and hedge funds have recently made changes to their positions in NOVT. Summit Creek Advisors LLC boosted its stake in shares of Novanta by 47.5% in the 4th quarter. Summit Creek Advisors LLC now owns 73,673 shares of the technology company's stock valued at $8,766,000 after buying an additional 23,712 shares during the period. Legal & General Group Plc lifted its stake in Novanta by 7.8% in the fourth quarter. Legal & General Group Plc now owns 207,053 shares of the technology company's stock worth $24,637,000 after acquiring an additional 14,969 shares during the last quarter. Tudor Investment Corp ET AL acquired a new position in shares of Novanta during the third quarter worth $5,404,000. Truist Financial Corp lifted its holdings in Novanta by 337.2% during the 4th quarter. Truist Financial Corp now owns 9,963 shares of the technology company's stock worth $1,185,000 after buying an additional 7,684 shares during the last quarter. Finally, Thrivent Financial for Lutherans lifted its stake in Novanta by 484.8% during the fourth quarter. Thrivent Financial for Lutherans now owns 48,336 shares of the technology company's stock worth $5,752,000 after purchasing an additional 40,071 shares during the last quarter. 98.35% of the stock is owned by hedge funds and other institutional investors.

About Novanta

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source