Is Novanta Stock a Buy or Sell After Its CEO Dumped 7,500 Shares Worth $1.1 Million?
Key Points
CEO Matthijs Glastra sold 7,500 shares for a transaction value of ~$1.09 million on Feb. 10, 2026.
This sale represented 6.29% of total holdings at the time.
All shares sold were held in the CEO’s direct ownership; indirect holdings remain unchanged via the Matthijs Glastra 2021 Irrevocable Trust.
Direct post-trade holdings were 57,367 shares.
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Matthijs Glastra, Chief Executive Officer of Novanta (NASDAQ:NOVT), reported a direct open-market sale of 7,500 common shares for a transaction value of ~$1.09 million on Feb. 10, 2026, according to a SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 7,500 |
| Transaction value | $1.1 million |
| Post-transaction shares (direct) | 57,367 |
| Post-transaction shares (indirect) | 54,382 |
| Post-transaction value (direct ownership) | $8.3 million |
Transaction value based on SEC Form 4 reported price ($145.04); post-transaction value based on Feb. 10, 2026 market close ($145.05).
Key questions
- How does this sale compare with the CEO’s historical trading activity?
This 7,500-share sale matches the largest trade size in the CEO’s 10 sell-only transactions since February 2023, and is above the recent-period median of 6,500 shares per transaction. - What is the impact on direct versus indirect ownership?
Direct holdings decreased to 57,367 shares; indirect holdings via the trust remain unchanged at 54,382 shares. - Was the sale executed under a prearranged trading plan?
Yes, the transaction was carried out under a pre-established Rule 10b5-1 plan, indicating routine liquidity management. - How does the sale align with remaining ownership capacity?
With direct holdings now at 57,367 shares, the reduced trade size in recent filings is explained by a shrinking available share base rather than a change in disposition strategy.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $960.31 million |
| Net income (TTM) | $52.82 million |
| Employees | 3,000 |
| 1-year price change | -1.80% |
Note: 1-year price change calculated as of Feb. 10, 2026.
Company snapshot
- Novanta offers photonics, vision, and precision motion components and subsystems, with key products including laser scanning systems, medical visualization technologies, and motion control solutions.
- The company generates revenue by designing, manufacturing, and selling proprietary hardware and integrated solutions to original equipment manufacturers (OEMs) in the medical and industrial sectors.
- Primary customers are OEMs serving medical device, life sciences, and advanced industrial automation markets worldwide.
Novanta operates at scale as a specialized provider of advanced photonics, vision, and motion technologies, with a focus on high-growth medical and industrial applications. The company leverages proprietary technology platforms and a diversified brand portfolio to address complex OEM requirements. Its strategic emphasis on innovation and integration provides a competitive edge in precision-driven markets.
What this transaction means for investors
The sale of 7,500 Novanta shares by its CEO Matthijs Glastra is not a cause for concern for a few reasons. The transaction was part of Mr. Glastra’s 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.
Moreover, after his Feb. 10 sale, Mr. Glastra retained an additional 57,367 directly-held shares as well as another 54,382 shares in a trust, indicating he is not in a rush to dispose of his holdings.
Mr. Glastra’s sale came at a time when Novanta shares were soaring. The stock eventually hit a 52-week high of $150.18 before falling. The price increase was due to the company’s excellent business performance.
In the fourth quarter, revenue rose 9% year over year to $258 million, exceeding expectations. This helped Novanta end 2025 with a 3% year-over-year sales increase to $981 million.
The company expects revenue to continue growing in 2026. It forecasted sales to exceed $1 billion this year. Given Novanta’s success, it’s no wonder the stock is up.
However, its price-to-earnings ratio of 91 hovers around a high for the past year. This means its shares are pricey. Consequently, now is a good time for shareholders to sell, but investors who want to buy should wait until the stock price drops further.
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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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