Novanta (NASDAQ:NOVT) Board of Directors Approves Share Repurchase Program

Key Points

• Novanta's board has authorized a share repurchase program allowing the company to buy back up to $200 million in outstanding shares, or approximately 4.9% of its total shares.
• Analysts have adjusted their price targets for Novanta, with Robert W. Baird reducing its target from $139.00 to $133.00, while the stock maintains a consensus rating of "Hold."
• Novanta reported earnings of $0.76 per share for the last quarter, exceeding expectations, and set EPS guidance for FY 2025 between 3.220-3.360.

Novanta (NASDAQ:NOVT - Get Free Report) declared that its Board of Directors has authorized a stock repurchase plan on Thursday, September 18th, RTT News reports. The company plans to buyback $200.00 million in shares. This buyback authorization authorizes the technology company to repurchase up to 4.9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

A number of research firms have weighed in on NOVT. Robert W. Baird reduced their price objective on shares of Novanta from $139.00 to $133.00 and set a "neutral" rating for the company in a research note on Monday, August 11th. Wall Street Zen cut Novanta from a "buy" rating to a "hold" rating in a research note on Monday, August 11th. One investment analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $133.00.

Novanta Stock Performance

NOVT traded down $0.37 during trading on Monday, hitting $114.32. The company's stock had a trading volume of 38,923 shares, compared to its average volume of 297,334. Novanta has a one year low of $98.76 and a one year high of $184.11. The business's 50 day simple moving average is $118.95 and its 200-day simple moving average is $122.82. The company has a quick ratio of 1.62, a current ratio of 2.54 and a debt-to-equity ratio of 0.57. The firm has a market cap of $4.11 billion, a PE ratio of 67.25 and a beta of 1.50.

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

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.