NOVT Novanta Inc

Novanta (NOVT) recently experienced an 11% stock drop after quarterly results beat revenue expectations but missed on EBITDA, raising concerns about its operating discipline. Despite this, analysts project significant earnings growth by 2028, leading to a narrative fair value suggesting the stock is undervalued. However, its high P/E ratio compared to industry averages indicates potential multiple compression risk.

Novanta (NOVT) recently reported a 1.4% revenue increase, beating analyst expectations, but its EBITDA fell short, raising concerns about its profitability efficiency. This performance, coupled with an 11.4% share price drop, puts focus on margin recovery as a key catalyst, especially given risks from tariffs and relocation costs. Despite a share repurchase authorization, the company's long-term margin expansion narrative faces challenges, making its ability to convert revenue growth into consistent profitability a central investment theme.

Novanta (NOVT) reported a revenue beat but an EBITDA miss in its latest quarterly results, raising questions about operational efficiency and profitability. This performance has caused an 11.4% share price drop, shifting investor focus to management's ability to execute cost reduction and regionalization plans. The company's recent US$550 million offering provides financial flexibility for acquisitions and supply chain reconfiguration, which are crucial for its investment narrative.

Thomas Secor, a Director at Novanta Inc (NOVT), sold 747 shares of the company on December 22, 2025, leaving him with 0 shares. This transaction is part of a trend for Secor who has sold a total of 1,495 shares over the past year with no purchases. Novanta Inc's stock is currently trading at $120.16, and with a GF Value of $172.66, it is modestly undervalued according to GuruFocus's intrinsic value estimate.

Exchange Traded Concepts LLC has increased its stake in Novanta Inc. (NASDAQ:NOVT) by 22.1%, now owning 178,375 shares valued at approximately $17.86 million. Despite increased institutional investment, analyst sentiment toward Novanta is negative, with a consensus "Sell" rating and a target price of $133. The company reported strong Q3 earnings, beating consensus estimates, and authorized a $200 million share repurchase program.

This article provides an in-depth analysis of Novanta Inc. (NASDAQ: NOVT) using AI-generated signals and institutional trading strategies. It highlights a strong near and mid-term sentiment but a weak long-term outlook, with specific entry, target, and stop-loss levels for different trading approaches. The analysis emphasizes risk-reward ratios and multi-timeframe signal analysis to guide traders on potential movements for NOVT.