Zacks Investment Research Lowers Novanta (NOVT) to Hold

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Zacks Investment Research cut shares of Novanta (NASDAQ:NOVT) from a buy rating to a hold rating in a research note released on Wednesday.

According to Zacks, “Novanta Inc. designs, develops, manufactures and sells precision photonic and motion control components and subsystems to original equipment manufacturers in the medical equipment and advanced industrial technology markets. Novanta Inc., formerly known as GSI Group Inc., is based in Bedford, Massachusetts. “

Several other equities analysts have also recently commented on the company. BidaskClub upgraded Novanta from a buy rating to a strong-buy rating in a research note on Wednesday, August 15th. ValuEngine cut Novanta from a buy rating to a hold rating in a research note on Saturday, October 6th. Four investment analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. The stock currently has an average rating of Hold and a consensus price target of $64.00.

NASDAQ NOVT traded up $2.33 on Wednesday, reaching $64.11. The company had a trading volume of 199,988 shares, compared to its average volume of 219,743. The stock has a market cap of $2.37 billion, a PE ratio of 40.07 and a beta of 1.59. Novanta has a 1 year low of $43.65 and a 1 year high of $78.85. The company has a quick ratio of 2.14, a current ratio of 3.18 and a debt-to-equity ratio of 0.61.

Novanta (NASDAQ:NOVT) last released its quarterly earnings results on Wednesday, August 8th. The technology company reported $0.51 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.49 by $0.02. The firm had revenue of $150.40 million during the quarter, compared to analysts’ expectations of $147.26 million. Novanta had a return on equity of 19.99% and a net margin of 5.14%. Novanta’s quarterly revenue was up 26.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.41 EPS. Sell-side analysts anticipate that Novanta will post 2 EPS for the current fiscal year.

In other news, CFO Robert Buckley sold 13,487 shares of the stock in a transaction that occurred on Monday, September 17th. The stock was sold at an average price of $72.90, for a total transaction of $983,202.30. Following the completion of the transaction, the chief financial officer now directly owns 157,027 shares in the company, valued at approximately $11,447,268.30. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Peter L. Chang sold 3,680 shares of the stock in a transaction that occurred on Friday, August 17th. The shares were sold at an average price of $70.63, for a total value of $259,918.40. Following the transaction, the vice president now owns 36,132 shares of the company’s stock, valued at $2,552,003.16. The disclosure for this sale can be found here. Corporate insiders own 6.70% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. KAMES CAPITAL plc lifted its stake in Novanta by 4.3% during the third quarter. KAMES CAPITAL plc now owns 520,625 shares of the technology company’s stock worth $35,585,000 after purchasing an additional 21,284 shares during the last quarter. United Services Automobile Association lifted its stake in Novanta by 15.7% during the second quarter. United Services Automobile Association now owns 8,021 shares of the technology company’s stock worth $500,000 after purchasing an additional 1,086 shares during the last quarter. Northern Trust Corp lifted its stake in Novanta by 3.8% during the second quarter. Northern Trust Corp now owns 448,729 shares of the technology company’s stock worth $27,955,000 after purchasing an additional 16,283 shares during the last quarter. Moody Aldrich Partners LLC lifted its stake in Novanta by 74.7% during the second quarter. Moody Aldrich Partners LLC now owns 60,166 shares of the technology company’s stock worth $3,748,000 after purchasing an additional 25,733 shares during the last quarter. Finally, California Public Employees Retirement System lifted its stake in Novanta by 78.8% during the second quarter. California Public Employees Retirement System now owns 45,486 shares of the technology company’s stock worth $2,834,000 after purchasing an additional 20,050 shares during the last quarter. Institutional investors own 85.75% of the company’s stock.

Novanta Company Profile

Novanta Inc, together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company's Photonics segment offers photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures.

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