Here’s Why Novanta (NOVT) Pulled Back in Q3

Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite returned -6.72% net-of-fees in the third quarter, compared to the Russell 2000 Growth Index’s -7.32% return. The strategy’s outperformance was driven by positive stock selection effects, while sector allocation effects were modestly negative. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Small Cap Composite highlighted stocks like Novanta Inc. (NASDAQ:NOVT) in the third quarter 2023 investor letter. Headquartered in Bedford, Massachusetts, Novanta Inc. (NASDAQ:NOVT) provides core technology solutions to healthcare and advanced industrial original equipment manufacturers. On November 14, 2023, Novanta Inc. (NASDAQ:NOVT) stock closed at $134.91 per share. One-month return of Novanta Inc. (NASDAQ:NOVT) was -7.75%, and its shares lost 15.05% of their value over the last 52 weeks. Novanta Inc. (NASDAQ:NOVT) has a market capitalization of $4.831 billion.

Conestoga Small Cap Composite made the following comment about Novanta Inc. (NASDAQ:NOVT) in its Q3 2023 investor letter:

Novanta Inc. (NASDAQ:NOVT): After being a leader in two of the prior three quarters, NOVT pulled back during the third quarter. NOVT, a photonics and vision technology company, reported better-than-expected second quarter results but slightly decreased full-year guidance due to a significant decline in their Chinese business, which makes up about 9% of revenue. We visited NOVT headquarters during the quarter and we share management’s optimism around the company’s fundamentals looking forward.”

A scientist working on a complex photonics instruments in a sterile laboratory setting.

Novanta Inc. (NASDAQ:NOVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Novanta Inc. (NASDAQ:NOVT) at the end of second quarter which was 10 in the previous quarter.

We discussed Novanta Inc. (NASDAQ:NOVT) in another article and shared Alger Weatherbie Specialized Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.