Novanta (NASDAQ:NOVT) Stock Rating Upgraded by Zacks Research

Key Points

• Novanta's stock rating has been upgraded by Zacks Research from a "strong sell" to a "hold" rating, reflecting a shift in analyst sentiment surrounding the company's performance.
• The company has announced a $200 million share buyback program, indicating that management believes its shares are undervalued.
• Novanta reported a earnings per share (EPS) of $0.76 in its latest quarterly earnings, surpassing expectations and showing a year-over-year revenue increase of 2.2%.

Novanta (NASDAQ:NOVT - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

A number of other research analysts have also recently commented on the company. Wall Street Zen cut Novanta from a "buy" rating to a "hold" rating in a research note on Monday, August 11th. Robert W. Baird decreased their price target on Novanta from $139.00 to $133.00 and set a "neutral" rating on the stock in a research note on Monday, August 11th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Novanta in a research note on Saturday, September 27th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $133.00.

Novanta Trading Down 3.2%

NOVT opened at $100.97 on Monday. Novanta has a one year low of $98.76 and a one year high of $184.11. The stock has a market capitalization of $3.63 billion, a PE ratio of 59.39 and a beta of 1.49. The business's 50 day moving average price is $113.90 and its 200 day moving average price is $120.18. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.62 and a current ratio of 2.54.

Novanta (NASDAQ:NOVT - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The technology company reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.74 by $0.02. Novanta had a return on equity of 14.70% and a net margin of 6.41%.The firm had revenue of $241.05 million for the quarter, compared to analysts' expectations of $237.97 million. During the same period in the prior year, the firm posted $0.73 earnings per share. The firm's quarterly revenue was up 2.2% on a year-over-year basis. Novanta has set its FY 2025 guidance at 3.220-3.360 EPS. Q3 2025 guidance at 0.780-0.850 EPS. As a group, equities research analysts expect that Novanta will post 3.03 EPS for the current year.

Novanta announced that its board has authorized a share repurchase program on Thursday, September 18th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the technology company to reacquire up to 4.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management believes its shares are undervalued.

Institutional Trading of Novanta

A number of large investors have recently modified their holdings of NOVT. SVB Wealth LLC purchased a new position in Novanta in the first quarter valued at $48,000. GAMMA Investing LLC boosted its stake in shares of Novanta by 146.0% during the first quarter. GAMMA Investing LLC now owns 401 shares of the technology company's stock worth $51,000 after buying an additional 238 shares during the period. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new stake in shares of Novanta during the second quarter worth about $52,000. CWM LLC boosted its stake in shares of Novanta by 329.8% during the first quarter. CWM LLC now owns 404 shares of the technology company's stock worth $52,000 after buying an additional 310 shares during the period. Finally, Signaturefd LLC lifted its position in Novanta by 80.0% in the first quarter. Signaturefd LLC now owns 414 shares of the technology company's stock valued at $53,000 after purchasing an additional 184 shares during the period. Hedge funds and other institutional investors own 98.35% of the company's stock.

Novanta Company Profile

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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