Novanta Stock Is Roughly Flat This Past Year, So Why Did One Investor Just Bet $45 Million on Shares?
Key Points
ACK Asset Management acquired 375,000 shares of Novanta in the fourth quarter.
The quarter-end position value increased by $44.62 million due entirely to the new share purchase.
Novanta now accounts for 5.6% of 13F AUM, which places it outside the fund's top five holdings.
- 10 stocks we like better than Novanta ›
On February 13, 2026, ACK Asset Management LLC disclosed a new position in Novanta (NASDAQ:NOVT), acquiring 375,000 shares worth an estimated $44.62 million.
What happened
According to an SEC filing dated February 13, 2026, ACK Asset Management LLC bought 375,000 shares of Novanta, marking a new position. The quarter-end value of the position totaled $44.62 million.
What else to know
- This was a new position, representing 5.6% of the fund’s 13F AUM after the trade.
- Top holdings after the filing:
- NYSE:MTRN: $59.03 million (7.5% of AUM)
- NYSE:GVA: $57.67 million (7.3% of AUM)
- NYSE:WMS: $56.48 million (7.1% of AUM)
- NYSE:ATS: $50.84 million (6.4% of AUM)
- NYSE:CNM: $46.77 million (5.9% of AUM)
- As of February 12, 2026, shares of Novanta were priced at $139.29, down 5.7% over the past year and underperforming the S&P 500 by 18.63 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $960.31 million |
| Net income (TTM) | $52.82 million |
| Price (as of market close February 12, 2026) | $139.29 |
| One-year price change | (5.73%) |
Company snapshot
- Novanta designs and manufactures photonics, vision, and precision motion components and sub-systems, including laser scanning, beam delivery, medical visualization, and motion control solutions.
- The company generates revenue by supplying OEMs in the medical and industrial sectors with highly engineered components and sub-systems, leveraging a diversified product portfolio and global distribution channels.
- Primary customers are original equipment manufacturers (OEMs) in medical technology, life sciences, and advanced industrial applications worldwide.
Novanta is a technology company specializing in advanced photonics, vision, and motion control solutions for medical and industrial OEMs. With nearly $1 billion in trailing twelve-month revenue, the company leverages a broad portfolio of proprietary technologies and brands to address mission-critical applications in high-growth end markets. Novanta's strategic focus on innovation and precision engineering underpins its competitive position in supplying enabling components to leading equipment manufacturers globally.
What this transaction means for investors
High precision component suppliers do not always get credit when end markets wobble, and that disconnect is often where opportunity begins.
As of Friday, Novanta shares are roughly flat over the past year. Meanwhile, the firm generated $247.8 million in third quarter revenue, up 1.4% year over year, while adjusted EBITDA ticked up from $57 million to $58.1 million, a 23.4% margin, and adjusted EPS came in at $0.87.
Looking forward, guidance calls for full-year 2025 revenue of $975 million to $979 million and adjusted EBITDA of $222 million to $225 million. Free cash flow in the quarter was modest at $4.2 million as inventory and restructuring spending weighed on cash generation.
At 5.6% of assets, this is one of the larger allocations in a portfolio already tilted toward industrial and infrastructure names like Materion, Granite Construction, and Advanced Drainage Systems. The key question is whether organic growth reaccelerates as medical and advanced industrial demand recovers.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Drainage Systems and Materion. The Motley Fool recommends ATS Corp. The Motley Fool has a disclosure policy.
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