Novanta (NASDAQ:NOVT) Shares Gap Up After Strong Earnings

Shares of Novanta Inc. (NASDAQ:NOVT) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $142.38, but opened at $148.68. Novanta shares last traded at $143.7150, with a volume of 25,469 shares.

The technology company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.03. Novanta had a return on equity of 15.29% and a net margin of 5.49%.The firm had revenue of $258.35 million for the quarter, compared to the consensus estimate of $260.72 million. During the same quarter in the previous year, the company earned $0.76 EPS. Novanta has set its FY 2026 guidance at 3.500-3.650 EPS and its Q1 2026 guidance at 0.750-0.800 EPS.

Key Novanta News

Here are the key news stories impacting Novanta this week:

• Positive Sentiment: Q4 results showed record revenue and an earnings beat: Novanta reported revenue of about $258.3M (up ~8.5% YoY) and GAAP EPS of $0.91, narrowly beating consensus EPS. Management highlighted strategic growth plans on the earnings call. Read More.
• Neutral Sentiment: Company issued its formal press release and full financial tables for Q4 and FY 2025 (useful for modeling revenue and margin bridges). Read More.
• Neutral Sentiment: Analyst/valuation pieces are assessing where the stock sits after recent momentum — useful background for relative valuation and multiple expansion analyses. Read More.
• Negative Sentiment: Q1 and FY‑2026 guidance disappointed some expectations: Q1 EPS guide of $0.75–$0.80 vs. consensus ~$0.85, and FY EPS guide of $3.50–$3.65 is only marginally below consensus — the lower near‑term EPS guide drove investor concern about near‑term growth. Read More.
• Negative Sentiment: Operational/cash‑flow flags reported by third parties: one summary noted a sharp drop in cash from operations (reported ~‑85% YoY) and higher cost of sales, which pressured operating profit despite revenue growth — this raises short‑term margin and cash‑conversion concerns (third‑party data caveat). Read More.
• Negative Sentiment: Insider selling continues: CFO Robert Buckley sold 1,423 shares in late Feb (SEC Form 4 filed); coverage also notes multiple recent insider sales by executives. While insiders still hold large positions, continued sales can weigh on sentiment. Read More.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Zacks Research upgraded Novanta from a “strong sell” rating to a “hold” rating in a research report on Friday, January 16th. Weiss Ratings upgraded shares of Novanta from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, January 20th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, Novanta currently has a consensus rating of “Hold” and a consensus price target of $133.00.

Insider Buying and Selling at Novanta

In related news, CEO Matthijs Glastra sold 7,500 shares of the company’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $145.04, for a total value of $1,087,800.00. Following the completion of the sale, the chief executive officer directly owned 57,367 shares in the company, valued at approximately $8,320,509.68. This represents a 11.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Robert Buckley sold 1,423 shares of the firm’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $140.88, for a total value of $200,472.24. Following the transaction, the chief financial officer owned 93,814 shares in the company, valued at approximately $13,216,516.32. This trade represents a 1.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 24,346 shares of company stock valued at $3,382,737. 1.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Novanta

A number of large investors have recently added to or reduced their stakes in NOVT. Assetmark Inc. raised its holdings in shares of Novanta by 22.4% in the 4th quarter. Assetmark Inc. now owns 541 shares of the technology company’s stock worth $64,000 after buying an additional 99 shares in the last quarter. Arizona State Retirement System raised its stake in Novanta by 1.6% during the third quarter. Arizona State Retirement System now owns 10,632 shares of the technology company’s stock worth $1,065,000 after acquiring an additional 171 shares in the last quarter. Huntington National Bank boosted its stake in shares of Novanta by 65.7% in the 2nd quarter. Huntington National Bank now owns 492 shares of the technology company’s stock valued at $63,000 after purchasing an additional 195 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Novanta by 120.1% in the 4th quarter. EverSource Wealth Advisors LLC now owns 427 shares of the technology company’s stock worth $51,000 after purchasing an additional 233 shares during the last quarter. Finally, M&T Bank Corp increased its position in shares of Novanta by 6.6% during the 2nd quarter. M&T Bank Corp now owns 3,785 shares of the technology company’s stock worth $488,000 after purchasing an additional 236 shares in the last quarter. Institutional investors own 98.35% of the company’s stock.

Novanta Stock Performance

The stock has a market capitalization of $4.92 billion, a price-to-earnings ratio of 94.14 and a beta of 1.62. The stock’s 50-day simple moving average is $132.47 and its 200 day simple moving average is $120.04. The company has a quick ratio of 1.54, a current ratio of 2.51 and a debt-to-equity ratio of 0.56.

About Novanta

Novanta, Inc (NASDAQ: NOVT) is a global technology company that designs and manufactures precision components, subsystems and software used in advanced photonics and motion control applications. The company serves customers in the medical device and advanced industrial markets, supplying critical technologies for diagnostics and therapeutic systems, semiconductor and electronics manufacturing, and scientific instrumentation. Novanta’s product portfolio includes laser control modules, optics, beam delivery systems, high-precision motors, actuators, stages, and fluidics solutions designed to meet stringent accuracy and reliability requirements.

Novanta’s Photonics segment delivers laser and energy delivery components that enable minimally invasive surgical procedures and diagnostic imaging.