Novanta Stock Has Underperformed This Past Year, but One Investor Just Made a $36 Million Bet on Shares

2 weeks ago 8

Jonathan Ponciano, The Motley Fool

Wed, March 4, 2026 astatine 9:05 AM CST 4 min read

On February 17, 2026, Harvey Partners disclosed a caller presumption successful Novanta (NASDAQ:NOVT), acquiring 304,000 shares worthy $36.17 million.

According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Harvey Partners reported a caller presumption successful Novanta, acquiring 304,000 shares during the quarter. The quarter-end worth of the involvement was $36.17 million, reflecting some the acquisition and immoderate banal terms changes afterward.

This is simply a caller presumption for the fund, present accounting for 3.21% of 13F reportable assets nether absorption (AUM).
Top holdings aft the filing:
- NYSE: NPO: $53.4 cardinal (4.8% of AUM)
- NASDAQ: GLDD: $48.6 cardinal (4.4% of AUM)
- NASDAQ: MKSI: $46.2 cardinal (4.1% of AUM)
- NASDAQ: ADEA: $45.1 cardinal (4.1% of AUM)
- NASDAQ: LASR: $45.1 cardinal (4.1% of AUM)
As of February 17, 2026, shares of Novanta were priced astatine $145.37 astir level implicit the past twelvemonth and good underperforming the S&P 500’s astir 16% summation successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent February 17, 2026)	$145.37
Market capitalization	$5 billion
Revenue (TTM)	$980.6 million
Net income (TTM)	$53.8 million

Novanta provides photonics, vision, and precision question components and sub-systems, including laser scanning, beam delivery, aesculapian visualization, and question power solutions.
The institution generates gross by designing, manufacturing, and selling specialized hardware and instrumentality to archetypal instrumentality manufacturers, chiefly done nonstop sales, resellers, and distributors.
Primary customers are archetypal instrumentality manufacturers successful the aesculapian and concern sectors worldwide, seeking precocious exertion for imaging, diagnostics, and precision automation.

Novanta operates astatine standard with a planetary footprint, specializing successful high-precision exertion solutions for demanding aesculapian and concern applications. The company's strategy focuses connected innovation successful photonics and question control, leveraging a diversified merchandise portfolio and established brands to code analyzable lawsuit needs. Novanta's competitory borderline lies successful its heavy engineering expertise and quality to service OEMs with mission-critical components and subsystems.

Novanta banal has been astir level implicit the past twelvemonth astatine astir $145, severely trailing the broader marketplace arsenic margins suffered contempt continued request from aesculapian OEMs, wherever photonics, vision, and question power components are profoundly embedded successful surgical systems and diagnostics equipment.

Novanta closed 2025 with gross of $980.6.3 million, up astir 3% twelvemonth implicit year, but operating income fell to $94 cardinal from $110.6 cardinal successful 2024, and nett income besides fell from $64.1 cardinal to $53.8 million. Nevertheless, the steadfast exceeded gross expectations successful the 4th and delivered a instrumentality to integrated growth. CEO Matthijs Glastra said Novanta plans to amended margins and currency travel this year.

Within a portfolio that already includes automation, laser and concern exertion names, this 3% allocation looks intentional. It reinforces a thesis astir mission-critical subsystems alternatively than headline-grabbing finished products. For semipermanent investors, the question is whether Novanta tin really amended margins and currency travel adjacent if superior spending cycles wobble. If it can, today’s aggregate whitethorn not look stretched astatine all.

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