Novanta (NASDAQ:NOVT) Shares Gap Down - Here's What Happened

Key Points

• Novanta Inc. shares gapped down from a previous close of $124.01 to open at $116.84, trading at $114.15 by the latest report with a total volume of 22,599 shares.
• Analysts have upgraded Novanta from a "hold" rating to a "buy" rating, potentially signaling positive market sentiment following the company's quarterly earnings report.
• For the most recent quarter, Novanta reported $0.76 EPS, exceeding analyst expectations of $0.74, along with a revenue increase of 2.2% year-over-year, totaling $241.05 million.

Novanta Inc. (NASDAQ:NOVT - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $124.01, but opened at $116.84. Novanta shares last traded at $114.15, with a volume of 22,599 shares traded.

Analysts Set New Price Targets

Separately, Wall Street Zen upgraded shares of Novanta from a "hold" rating to a "buy" rating in a report on Sunday.

Novanta Trading Down 4.9%

The firm has a market capitalization of $4.24 billion, a P/E ratio of 60.20 and a beta of 1.48. The company has a quick ratio of 1.70, a current ratio of 2.56 and a debt-to-equity ratio of 0.50. The firm's 50-day simple moving average is $126.07 and its 200-day simple moving average is $130.08.

Novanta (NASDAQ:NOVT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The technology company reported $0.76 earnings per share for the quarter, topping analysts' consensus estimates of $0.74 by $0.02. Novanta had a net margin of 7.42% and a return on equity of 15.06%. The firm had revenue of $241.05 million during the quarter, compared to analyst estimates of $237.97 million. During the same period in the previous year, the business posted $0.73 EPS. The business's quarterly revenue was up 2.2% on a year-over-year basis. Analysts anticipate that Novanta Inc. will post 3.03 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Geneva Capital Management LLC raised its holdings in Novanta by 5.9% in the 2nd quarter. Geneva Capital Management LLC now owns 988,969 shares of the technology company's stock worth $127,508,000 after acquiring an additional 54,934 shares during the last quarter. Atria Investments Inc lifted its stake in Novanta by 11.2% during the 2nd quarter. Atria Investments Inc now owns 3,031 shares of the technology company's stock valued at $391,000 after acquiring an additional 305 shares during the period. Retirement Systems of Alabama lifted its stake in Novanta by 0.6% during the 2nd quarter. Retirement Systems of Alabama now owns 43,964 shares of the technology company's stock valued at $5,668,000 after acquiring an additional 244 shares during the period. Teacher Retirement System of Texas lifted its stake in Novanta by 51.2% during the 2nd quarter. Teacher Retirement System of Texas now owns 9,666 shares of the technology company's stock valued at $1,246,000 after acquiring an additional 3,272 shares during the period. Finally, Y Intercept Hong Kong Ltd bought a new position in Novanta during the 2nd quarter valued at about $2,069,000. 98.35% of the stock is owned by hedge funds and other institutional investors.

About Novanta

Novanta, Inc engages in the provision of core technology solutions to healthcare and advanced industrial original equipment manufacturers. It operates through the following segments: Photonics, Vision, and Precision Motion. The Photonics segment designs, manufactures, and markets photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products.

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