Novanta (NASDAQ:NOVT) Stock Breaks Below Fifty Day Moving Average - Time to Sell?

Key Points

• Novanta shares fell below their 50-day moving average, trading as low as $140 and last changing hands at $143.58 versus the $147.16 average.
• Despite the technical weakness, analysts maintain a consensus “Buy” rating with an average price target of $194, substantially above the recent share price.
• Novanta exceeded quarterly expectations, reporting $0.89 EPS and $265.81 million in revenue, while revenue rose 10.3% year over year. Institutional investors own 98.35% of the stock, with several major holders recently increasing their positions.

Novanta Inc. (NASDAQ:NOVT - Get Free Report)'s stock price crossed below its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $147.16 and traded as low as $140.00. Novanta shares last traded at $143.58, with a volume of 246,749 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Weiss Ratings restated a "hold (c-)" rating on shares of Novanta in a research report on Wednesday, July 15th. Zacks Research upgraded Novanta from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 14th. Wall Street Zen raised Novanta from a "hold" rating to a "buy" rating in a research note on Sunday, August 9th. Finally, Robert W. Baird set a $194.00 target price on Novanta in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $194.00.

Novanta Trading Up 1.0%

The company has a quick ratio of 3.79, a current ratio of 4.57 and a debt-to-equity ratio of 0.12. The business's fifty day moving average is $147.16 and its two-hundred day moving average is $144.27. The firm has a market cap of $5.43 billion, a price-to-earnings ratio of 92.04 and a beta of 1.72.

Novanta (NASDAQ:NOVT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.06. The firm had revenue of $265.81 million for the quarter, compared to the consensus estimate of $262.30 million. Novanta had a return on equity of 10.83% and a net margin of 6.00%.The business's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $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. Equities analysts anticipate that Novanta Inc. will post 3.7 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in NOVT. Allspring Global Investments Holdings LLC raised its stake in shares of Novanta by 27.0% during the first quarter. Allspring Global Investments Holdings LLC now owns 1,776,694 shares of the technology company's stock worth $210,307,000 after buying an additional 377,232 shares during the last quarter. State Street Corp grew its holdings in Novanta by 7.3% during the 2nd quarter. State Street Corp now owns 1,436,785 shares of the technology company's stock worth $233,005,000 after acquiring an additional 97,621 shares during the period. Wasatch Advisors LP raised its position in shares of Novanta by 54.6% during the 1st quarter. Wasatch Advisors LP now owns 996,645 shares of the technology company's stock valued at $117,714,000 after acquiring an additional 351,863 shares during the last quarter. Bamco Inc. NY raised its position in shares of Novanta by 49.4% during the 4th quarter. Bamco Inc. NY now owns 936,962 shares of the technology company's stock valued at $111,489,000 after acquiring an additional 309,869 shares during the last quarter. Finally, William Blair Investment Management LLC acquired a new position in shares of Novanta in the 2nd quarter valued at $124,254,000. 98.35% of the stock is currently owned by institutional investors and hedge funds.

Novanta Company Profile

Novanta Inc NASDAQ: NOVT is a medical technology and advanced equipment company that develops components and subsystems used by original equipment manufacturers. Its technologies are designed for applications requiring precision motion, photonics, imaging, and other specialized capabilities, with a primary focus on healthcare and medical device markets.

The company's offerings include precision motion control systems, motors, pumps, encoders, laser sources, optical components, and beam-delivery systems.

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