Novanta (NASDAQ:NOVT) Stock Price Breaks Below 200 Day Moving Average - Here's What Happened

Key Points

• Novanta shares fell below their 200-day moving average of $142.55, reaching an intraday low of $130.29 and last trading at $131.82.
• Analyst sentiment is mostly cautious: the stock has an average Hold rating, with one Buy and two Hold ratings; the consensus price target is $194.
• In its latest reported quarter, Novanta beat earnings and revenue estimates, with EPS of $0.89 and revenue of $265.81 million; revenue rose 10.3% year over year.

Novanta Inc. (NASDAQ:NOVT - Get Free Report) shares passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $142.55 and traded as low as $130.29. Novanta shares last traded at $131.82, with a volume of 473,366 shares changing hands.

Wall Street Analyst Weigh In

Several research firms have recently commented on NOVT. Zacks Research cut Novanta from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 6th. Wall Street Zen lowered shares of Novanta from a "buy" rating to a "hold" rating in a research note on Saturday, October 24th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Novanta in a report on Tuesday, October 13th. Finally, Robert W. Baird set a $194.00 price target on shares of Novanta in a report on Friday, August 7th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $194.00.

Novanta Stock Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 4.57 and a quick ratio of 3.79. The stock has a market capitalization of $4.99 billion, a P/E ratio of 84.50 and a beta of 1.71. The company has a fifty day moving average of $142.37 and a two-hundred day moving average of $142.55.

Novanta (NASDAQ:NOVT - Get Free Report) last released its earnings results on Wednesday, August 5th. The technology company reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.83 by $0.06. Novanta had a return on equity of 10.83% and a net margin of 6.00%. The company had revenue of $265.81 million for the quarter, compared to the consensus estimate of $262.30 million. During the same quarter last year, the business posted $0.76 EPS. Novanta's quarterly revenue was up 10.3% compared to the same quarter last year. On average, equities analysts anticipate that Novanta Inc. will post 3.70 EPS for the current year.

Hedge Funds Weigh In On Novanta

A number of hedge funds have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC boosted its stake in 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 valued at $210,307,000 after buying an additional 377,232 shares in the last quarter. State Street Corp grew its holdings in Novanta by 7.3% during the second 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. Congress Asset Management Co. grew its holdings in Novanta by 0.6% during the third quarter. Congress Asset Management Co. now owns 979,842 shares of the technology company's stock worth $139,324,000 after acquiring an additional 6,075 shares during the period. Bamco Inc. NY bought a new stake in Novanta in the second quarter worth about $137,984,000. Finally, William Blair Investment Management LLC bought a new stake in Novanta in the second quarter worth about $124,254,000. Institutional investors and hedge funds own 98.35% of the company's stock.

About Novanta

Novanta Inc is a technology company that develops and manufactures precision equipment and components used primarily in medical and advanced industrial applications. Its solutions are designed to support the movement, imaging, measurement and processing functions of complex equipment.

The company's products include photonics and laser components, precision motion-control systems, medical imaging and visualization technologies, and equipment used in minimally invasive and robotic surgery.

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