Novanta (NASDAQ:NOVT) Issues Quarterly Earnings Results

Novanta (NASDAQ:NOVT) announced its quarterly earnings results on Monday. The technology company reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.06, Zacks reports. The business had revenue of $247.84 million for the quarter, compared to analyst estimates of $245.95 million. Novanta had a return on equity of 14.70% and a net margin of 6.41%.The company’s quarterly revenue was up 1.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.85 earnings per share. Novanta updated its FY 2025 guidance to 3.240-3.300 EPS and its Q4 2025 guidance to 0.870-0.930 EPS.

Novanta Trading Up 0.9%

Shares of NASDAQ NOVT traded up $1.15 during midday trading on Wednesday, reaching $130.48. The company had a trading volume of 96,828 shares, compared to its average volume of 319,747. 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 $4.69 billion, a PE ratio of 76.89 and a beta of 1.49. The firm’s fifty day moving average price is $112.94 and its 200-day moving average price is $119.82. Novanta has a one year low of $98.76 and a one year high of $184.11.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Novanta

A number of institutional investors have recently bought and sold shares of NOVT. Osaic Holdings Inc. raised its holdings in Novanta by 471.7% in the 2nd quarter. Osaic Holdings Inc. now owns 2,893 shares of the technology company’s stock worth $371,000 after purchasing an additional 2,387 shares during the period. Captrust Financial Advisors raised its holdings in Novanta by 30.7% in the 2nd quarter. Captrust Financial Advisors now owns 3,191 shares of the technology company’s stock worth $411,000 after purchasing an additional 750 shares during the period. Lazard Asset Management LLC purchased a new stake in Novanta in the 2nd quarter worth $443,000. First Trust Advisors LP purchased a new stake in Novanta in the 2nd quarter worth $528,000. Finally, AQR Capital Management LLC increased its stake in Novanta by 78.9% in the 1st quarter. AQR Capital Management LLC now owns 4,231 shares of the technology company’s stock worth $537,000 after buying an additional 1,866 shares in the last quarter. 98.35% of the stock is owned by institutional investors.

Novanta announced that its Board of Directors has initiated a stock buyback program on Thursday, September 18th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the technology company to reacquire up to 4.9% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.

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.