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

Key Points

• Novanta shares fell sharply, opening at $134 after a prior close of $145.98 and later trading near $124.50; the article reports the stock was down 16%.
• The company beat quarterly expectations, reporting EPS of $1.05 versus $0.97 forecast and revenue of $305.01 million versus $301.02 million expected; revenue rose 23.1% year over year.
• Analyst sentiment is mixed but averages to a Hold rating, with a reported average price target of $194.

Novanta Inc. (NASDAQ:NOVT - Get Free Report) gapped down before the market opened on Tuesday. The stock had previously closed at $145.98, but opened at $134.00. Novanta shares last traded at $124.5040, with a volume of 153,398 shares traded.

Wall Street Analyst Weigh In

NOVT has been the subject of several research reports. Zacks Research cut shares of Novanta from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Novanta in a research note on Tuesday, October 13th. Wall Street Zen upgraded shares of Novanta from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Robert W. Baird set a $194.00 target price on shares of Novanta in a research report on Friday, August 7th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $194.00.

Novanta Stock Down 16.0%

The business has a fifty day moving average of $142.25 and a 200 day moving average of $142.59. The firm has a market cap of $4.64 billion, a P/E ratio of 78.82 and a beta of 1.71. The company has a quick ratio of 3.79, a current ratio of 4.57 and a debt-to-equity ratio of 0.12.

Novanta (NASDAQ:NOVT - Get Free Report) last issued its earnings results on Monday, November 9th. The technology company reported $1.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.97 by $0.08. The firm had revenue of $305.01 million for the quarter, compared to analysts' expectations of $301.02 million. Novanta had a return on equity of 10.83% and a net margin of 6.00%. The company's revenue was up 23.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.87 earnings per share. On average, equities research analysts predict that Novanta Inc. will post 3.70 EPS for the current year.

Institutional Investors Weigh In On Novanta

Several large investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio bought a new stake in shares of Novanta during the 2nd quarter worth approximately $34,000. Gables Capital Management Inc. acquired a new position in Novanta during the third quarter worth $39,000. Pinnacle Wealth Planning Services Inc. increased its holdings in Novanta by 29.5% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 303 shares of the technology company's stock worth $43,000 after buying an additional 69 shares during the last quarter. Signaturefd LLC raised its position in Novanta by 231.7% during the third quarter. Signaturefd LLC now owns 345 shares of the technology company's stock worth $49,000 after acquiring an additional 241 shares in the last quarter. Finally, Harbor Investment Advisory LLC bought a new stake in Novanta during the second quarter worth $54,000. Institutional investors own 98.35% of the company's stock.

About Novanta

Novanta develops and manufactures precision technologies used in medical and advanced industrial applications. Its products include photonics and laser components, precision motion-control systems, machine-vision technologies, and related equipment and software.

The company's technologies are used in areas such as medical and surgical systems, life sciences, robotics, and industrial automation. Novanta serves customers internationally, with operations and customers across North America, Europe, and Asia.

Novanta was formerly known as GSI Group and adopted the Novanta name in 2016.

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