A Whale’s Wager on Novanta

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Now, I reckon there’s a story here, and it ain’t about gears and gizmos, but about a fella – or rather, a fund – named American Capital Management. They’ve been pokin’ around in the stock of Novanta, a company that makes bits and bobs for machines, and they’ve done a bit of buyin’. A right smart bit, actually. On the 17th of February, in the year of our Lord 2026, they added 163,005 shares to their pile. That’s a cool $18.56 million, by my reckonin’, spent on a company that builds the innards of other folks’ inventions.

Novanta, you see, is in the business of makin’ the things that make things. Photonics and precision motion, they call it. Fancy words for makin’ light dance and gears turn, mostly for medical contraptions and industrial machinery. They don’t build the whole shebang, just the bits that need a touch of cleverness.

A Whale’s Appetite

American Capital, bless their ambitious hearts, increased their holdings in Novanta by that aforementioned 163,005 shares during the last quarter. That’s a heap of stock, and it added up to a $23.52 million bump in the value of their Novanta stake, considerin’ both the new shares and a bit of price appreciation. They now hold a grand total of 381,866 shares, worth $45.44 million. Seems they believe in the company’s prospects, or at least, they’re willin’ to wager a considerable sum on ’em.

What Else to Ponder

This buyin’ spree elevates Novanta to a 2% weight in American Capital’s portfolio – a sizable chunk, mind you. Here’s a look at what else they’re holdin’, for those inclined to peek behind the curtain:

  • NASDAQ: AVAV: $156.67 million (6.9% of AUM)
  • NASDAQ: CYBR: $152.56 million (6.7% of AUM)
  • NASDAQ: MEDP: $126.02 million (5.6% of AUM)
  • NASDAQ: KTOS: $124.07 million (5.5% of AUM)
  • NASDAQ: IDXX: $122.96 million (5.4% of AUM)

As of that same February 17th, Novanta’s shares were fetchin’ $145.37 apiece, up a modest 1% over the past year. A middlin’ performance, I’d say, laggin’ behind the S&P 500 by a good ten percentage points. Seems the market ain’t exactly stampedin’ for Novanta stock.

American Capital manages a portfolio of 68 positions, with a total of $2.27 billion under their care as of December 31st, 2025. A sizable sum, enough to make a dent in the market, if they so choose.

A Glimpse at the Works

Here’s a bit of the company’s ledger, for those who like to see the numbers laid bare:

Metric Value
Price (as of market close February 17, 2026) $145.37
Market capitalization $5.24 billion
Revenue (TTM) $960.31 million
Net income (TTM) $52.82 million

The Inner Workings

Novanta, you see, deals in photonics, vision, and precision motion – fancy terms for makin’ things see, move, and shine. They design and manufacture specialized hardware for folks who build medical devices and industrial machinery. They’re the folks who make the eyes and muscles of the machines that other folks build. They serve a global clientele, providin’ high-performance components for applications where failure ain’t an option.

What This Means for the Rest of Us

American Capital’s buyin’ spree suggests they see somethin’ in Novanta that others might be missin’. Now, Novanta’s stock has been creepin’ upward lately, but over the long haul, it’s been a bit of a slumberin’ giant. Over the last five years, it’s generated a total return of just 2.6%, which equates to a compound annual growth rate of a paltry 0.5%.

There are signs, however, that the medical and industrial markets are pickin’ up steam. The post-pandemic glut of materials is clearin’, and that could benefit Novanta’s business. They’ve also managed to maintain healthy gross margins, even amidst trade and tariff uncertainties.

On the downside, revenue growth remains sluggish, at a mere 1.4%. And the valuation? Well, it’s a bit rich, if you ask me. Novanta’s price-to-earnings ratio stands at 99x – a good deal higher than the market average. Seems folks are expectin’ a heap of growth, and that’s always a gamble.

In conclusion, American Capital is bettin’ on Novanta’s recent momentum. Whether that bet pays off remains to be seen. Some investors might remain skeptical, given the stock’s lofty valuation. But then again, folks have been wrong before. And in the grand scheme of things, a few million dollars is just a drop in the bucket. The market, as always, is a curious and unpredictable beast.

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2026-02-20 04:13