Novanta (NASDAQ:NOVT) Shares Gap Up on Earnings Beat

Shares of Novanta Inc. (NASDAQ:NOVT) gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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 trading hands.

The technology company reported $0.91 EPS for the quarter, beating the consensus estimate of $0.88 by $0.03. Novanta had a net margin of 5.50% and a return on equity of 14.53%. The company had revenue of $258.35 million during the quarter, compared to analysts’ expectations of $260.72 million. During the same quarter in the previous year, the company earned $0.76 earnings per share. 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 Stories Impacting Novanta

Here are the key news stories impacting Novanta this week:

• Positive Sentiment: Q4 EPS beat and year-over-year revenue growth: Novanta reported $0.91 EPS vs. a $0.88 consensus and revenue of $258.3M (up ~8.5% y/y), showing underlying demand and margin resilience. Novanta Q4 earnings (MarketBeat)
• Positive Sentiment: FY 2026 guidance is roughly in line with street expectations: Novanta set FY EPS at $3.50–3.65 and revenue guidance of $1.0B–$1.1B, leaving upside at the top of the EPS range and providing a multi-quarter framework investors can model. Novanta Announces Financial Results (Business Wire)
• Neutral Sentiment: Analyst/press coverage is flagging valuation after the recent run — Novanta’s P/E and recent share momentum are under review, which could temper further multiple expansion absent clearer upside. Assessing Novanta Valuation (Yahoo)
• Neutral Sentiment: Company press and local coverage provide detail on results and the call — useful for modeling but not new directional information. Novanta: Q4 Earnings Snapshot (Stamford Advocate)
• Neutral Sentiment: Earnings preview/coverage highlighted what to watch on the call (guidance, cash flow, margin drivers). Useful context for near‑term trading. Novanta earnings preview (MSN)
• Negative Sentiment: Q1 2026 guidance missed street expectations: management guided EPS of $0.75–0.80 vs. a ~$0.85 consensus and set Q1 revenue near or slightly below estimates — a near‑term earnings headwind. Q1 Guidance (MarketBeat)
• Negative Sentiment: Operating cash flow and some operating-profit metrics weakened: third‑party summaries noted a sharp drop in cash from operations and a decline in operating profit, while cost of sales rose — these trends could pressure near‑term cash generation and margin recovery. Q4 results and cash-flow detail (Quiver)
• Negative Sentiment: Notable insider selling in recent months (CEO and other executives) may concern some investors about near‑term confidence or create additional supply pressure on the stock. Insider trading details (Quiver)

Analyst Ratings Changes

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

Insider Buying and Selling at Novanta

In other Novanta news, CFO Robert Buckley sold 1,423 shares of the company’s stock in a transaction dated Wednesday, January 21st. The shares were sold at an average price of $140.14, for a total transaction of $199,419.22. Following the completion of the sale, the chief financial officer directly owned 91,034 shares in the company, valued at $12,757,504.76. This represents a 1.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Matthijs Glastra sold 7,500 shares of Novanta stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $145.04, for a total value of $1,087,800.00. Following the completion of the transaction, the chief executive officer owned 57,367 shares in the company, valued at approximately $8,320,509.68. This represents a 11.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 22,923 shares of company stock valued at $3,182,264 over the last three months. 1.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Novanta

Several hedge funds and other institutional investors have recently modified their holdings of NOVT. Pilgrim Partners Asia Pte Ltd bought a new position in Novanta during the 3rd quarter valued at approximately $36,000. Migdal Insurance & Financial Holdings Ltd. purchased a new position in shares of Novanta during the 3rd quarter worth approximately $40,000. Danske Bank A S purchased a new position in shares of Novanta during the 3rd quarter worth approximately $40,000. Allworth Financial LP grew its stake in Novanta by 978.4% in the fourth quarter. Allworth Financial LP now owns 399 shares of the technology company’s stock worth $47,000 after purchasing an additional 362 shares during the period. Finally, EverSource Wealth Advisors LLC raised its holdings in Novanta by 120.1% in the fourth quarter. EverSource Wealth Advisors LLC now owns 427 shares of the technology company’s stock worth $51,000 after purchasing an additional 233 shares in the last quarter. 98.35% of the stock is owned by institutional investors.

Novanta Price Performance

The firm has a market cap of $5.20 billion, a PE ratio of 98.79 and a beta of 1.62. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.51 and a quick ratio of 1.54. The firm has a 50-day simple moving average of $132.15 and a 200 day simple moving average of $119.89.

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.