Novanta (NASDAQ:NOVT) Shares Gap Down - Time to Sell?

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 trading hands.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen raised shares of Novanta from a "hold" rating to a "buy" rating in a report on Sunday, August 3rd.

Novanta Stock Up 1.7%

The business has a 50 day moving average of $125.45 and a two-hundred day moving average of $129.04. The stock has a market capitalization of $4.16 billion, a PE ratio of 68.04 and a beta of 1.48. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.70 and a current ratio of 2.54.

Novanta (NASDAQ:NOVT - Get Free Report) last announced its earnings results on Tuesday, August 5th. The technology company reported $0.76 EPS for the quarter, topping analysts' consensus estimates of $0.74 by $0.02. Novanta had a net margin of 6.41% and a return on equity of 14.70%. The business had revenue of $241.05 million during the quarter, compared to the consensus estimate of $237.97 million. During the same period in the previous year, the company posted $0.73 earnings per share. The firm's revenue was up 2.2% on a year-over-year basis. Analysts predict that Novanta Inc. will post 3.03 EPS for the current year.

Institutional Investors Weigh In On Novanta

Institutional investors have recently bought and sold shares of the company. T. Rowe Price Investment Management Inc. boosted its position in shares of Novanta by 69.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 680,169 shares of the technology company's stock worth $103,910,000 after purchasing an additional 279,793 shares in the last quarter. Conestoga Capital Advisors LLC raised its stake in Novanta by 15.7% in the second quarter. Conestoga Capital Advisors LLC now owns 1,579,626 shares of the technology company's stock valued at $203,661,000 after buying an additional 214,374 shares during the last quarter. Champlain Investment Partners LLC boosted its holdings in Novanta by 45.6% in the first quarter. Champlain Investment Partners LLC now owns 596,190 shares of the technology company's stock worth $76,235,000 after acquiring an additional 186,848 shares in the last quarter. Millennium Management LLC grew its stake in shares of Novanta by 180.7% during the first quarter. Millennium Management LLC now owns 247,848 shares of the technology company's stock worth $31,692,000 after acquiring an additional 159,551 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its holdings in shares of Novanta by 18.7% during the second quarter. Allspring Global Investments Holdings LLC now owns 895,119 shares of the technology company's stock valued at $117,099,000 after acquiring an additional 141,112 shares in the last quarter. 98.35% of the stock is currently owned by institutional investors and hedge funds.

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.