Is Novanta Stock a Buy or Sell After Its CEO Dumped 6,500 Shares?
Key Points
CEO Matthijs Glastra sold 6,500 shares for a transaction value of approximately ~$878,458.68 on Feb. 2, 2026.
The transaction represented 5.17% of Matthijs Glastra's holdings at the time.
This was a direct open-market sale, with no indirect entities or derivative instruments involved; indirect holdings in the Matthijs Glastra 2021 Irrevocable Trust were unaffected.
Trade size was consistent with recent sell transactions, reflecting remaining capacity after a 56.54% reduction in direct holdings since November 2024.
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On Feb. 2, 2026, Chief Executive Officer Matthijs Glastra executed the sale of 6,500 shares of Novanta (NASDAQ:NOVT) in multiple open-market transactions, as reported in a recent SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 6,500 |
| Transaction value | ~$878,458.68 |
| Post-transaction shares (direct) | 64,867 |
| Post-transaction shares (indirect) | 54,382 |
| Post-transaction value (direct ownership) | ~$8,712,935.44 |
Transaction value based on SEC Form 4 weighted average purchase price ($135.15); post-transaction value based on Feb. 2, 2026 market close ($135.15).
Key questions
- How significant is this transaction relative to the CEO's remaining stake?
The sale reduced direct ownership by 9.11%, leaving Matthijs Glastra with 64,867 directly-held shares valued at approximately ~$8.7 million as of Feb. 2, 2026, alongside 54,382 shares held indirectly in a trust. - Did this transaction impact indirect holdings, and were any derivative instruments involved?
This was a direct open-market sale with no effect on indirect positions, including the Matthijs Glastra 2021 Irrevocable Trust, and no options were exercised or derivatives transacted in this filing. - How does the trade size compare to prior selling activity?
The 6,500-share sale is in line with the recent median sell size of 6,338.5 shares since November 2024, and the percentage of holdings sold (5.17%) is slightly above the recent median of 4.73% per transaction. - What does the cadence of recent activity indicate about remaining capacity for future insider sales?
The CEO's direct holdings have declined by 56.54% over the past fifteen months, and current trade sizes reflect a diminishing pool of available shares rather than a discretionary slowdown in selling.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-02-02) | $135.15 |
| Revenue (TTM) | $960.31 million |
| Net income (TTM) | $52.82 million |
| 1-year price change | -3.37% |
Note: 1-year price performance calculated using Feb. 2, 2026 as the reference date.
Company snapshot
- Novanta offers photonics, vision, and precision motion components and sub-systems, with revenue primarily generated from OEM customers in medical and industrial end markets.
- It operates a business model focused on designing, manufacturing, and selling specialized hardware and integrated solutions through direct sales, resellers, and distributors.
- The company targets original equipment manufacturers in medical device, advanced industrial, and life sciences sectors globally.
Novanta is a technology company specializing in advanced photonics, vision, and precision motion solutions for demanding medical and industrial applications. The company leverages a diversified portfolio of proprietary brands to serve OEM customers, emphasizing innovation, reliability, and integration.
What this transaction means for investors
Novanta CEO Matthijs Glastra’s sale of 6,500 company shares is not a warning sign. He executed the transaction as part of a Rule 10b5-1 trading plan, which he adopted in September of 2025. A Rule 10b5-1 trading plan is often implemented by insiders to avoid accusations of making trades based on insider information.
The sale came at an opportune time for Mr. Glastra. Novanta shares are surging in 2026 with the stock up about 23% year to date through the week ending Feb. 20.
The share price increase was due to Novanta’s solid business performance. In its fiscal third quarter ended Sept. 26, revenue ticked up to $247.8 million compared to $244.4 million in the previous year.
But a larger factor contributing to its rising share price was its bookings growth of 17% year over year, indicating strong demand for its products. As a result, Novanta stock’s valuation is at a high point for the past year, as evidenced by its price-to-earnings ratio of nearly 100.
This makes now a good time to sell Novanta stock, but not to buy. Wait for the share price to drop before deciding to make a purchase.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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