Novanta (NASDAQ:NOVT) Announces Earnings Results

Novanta (NASDAQ:NOVT) released its quarterly earnings results on Monday. The technology company reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.81 by $0.06, Zacks reports. Novanta had a net margin of 6.41% and a return on equity of 14.70%. Novanta updated its FY 2025 guidance to 3.240-3.300 EPS and its Q4 2025 guidance to 0.870-0.930 EPS.

Novanta Stock Up 7.0%

Shares of NASDAQ NOVT traded up $8.85 on Monday, reaching $135.86. 909,119 shares of the company’s stock traded hands, compared to its average volume of 319,085. Novanta has a 12 month low of $98.76 and a 12 month high of $184.11. The business’s 50 day simple moving average is $112.37 and its two-hundred day simple moving average is $119.56. The company has a market cap of $4.89 billion, a price-to-earnings ratio of 79.92 and a beta of 1.49. The company has a quick ratio of 1.62, a current ratio of 2.54 and a debt-to-equity ratio of 0.57.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on NOVT. Weiss Ratings lowered shares of Novanta from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Saturday, October 25th. Wall Street Zen cut Novanta from a “buy” rating to a “hold” rating in a research note on Monday, August 11th. Robert W. Baird dropped their target price on shares of Novanta from $139.00 to $133.00 and set a “neutral” rating for the company in a report on Monday, August 11th. Finally, Zacks Research upgraded shares of Novanta from a “strong sell” rating to a “hold” rating in a report on Monday, October 6th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $133.00.

Hedge Funds Weigh In On Novanta

A number of institutional investors and hedge funds have recently made changes to their positions in NOVT. Bamco Inc. NY increased its stake in shares of Novanta by 202.3% during the second quarter. Bamco Inc. NY now owns 311,115 shares of the technology company’s stock valued at $40,112,000 after purchasing an additional 208,188 shares in the last quarter. Wasatch Advisors LP increased its stake in shares of Novanta by 10.6% during the second quarter. Wasatch Advisors LP now owns 1,100,029 shares of the technology company’s stock valued at $141,827,000 after purchasing an additional 104,985 shares in the last quarter. Bank of America Corp DE increased its stake in shares of Novanta by 43.7% during the second quarter. Bank of America Corp DE now owns 280,171 shares of the technology company’s stock valued at $36,122,000 after purchasing an additional 85,231 shares in the last quarter. Jane Street Group LLC grew its holdings in shares of Novanta by 1,762.5% during the first quarter. Jane Street Group LLC now owns 61,631 shares of the technology company’s stock valued at $7,881,000 after buying an additional 58,322 shares during the last quarter. Finally, Qube Research & Technologies Ltd grew its holdings in shares of Novanta by 16.0% during the second quarter. Qube Research & Technologies Ltd now owns 130,629 shares of the technology company’s stock valued at $16,842,000 after buying an additional 18,008 shares during the last quarter. Institutional investors own 98.35% of the company’s stock.

Novanta declared that its Board of Directors has authorized a share buyback plan on Thursday, September 18th that allows the company to buyback $200.00 million in shares. This buyback authorization allows the technology company to buy up to 4.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

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.