Novanta (NASDAQ:NOVT) Declares Share Buyback 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) announced that its board has authorized a stock repurchase plan on Thursday, September 18th, RTT News reports. The company plans to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the technology company to reacquire up to 4.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

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

Novanta Stock Down 2.2%

Shares of NASDAQ NOVT traded down $2.53 during trading on Friday, reaching $114.69. The company had a trading volume of 663,741 shares, compared to its average volume of 319,410. Novanta has a 12-month low of $98.76 and a 12-month high of $184.11. The business's 50-day moving average is $118.95 and its 200 day moving average is $123.09. 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 stock has a market cap of $4.13 billion, a PE ratio of 67.47 and a beta of 1.50.

Novanta (NASDAQ:NOVT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The technology company reported $0.76 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $237.97 million. During the same quarter in the previous year, the business earned $0.73 earnings per share. The company's 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 analysts forecast that Novanta will post 3.03 earnings per share for the current fiscal year.

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.