Novanta Sells Equity Units to Strengthen Balance Sheet

Tip Ranks
2025.11.12 22:36
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Novanta (NOVT) has announced the sale of 11 million tangible equity units at $50 each, with an over-allotment option fully exercised, to strengthen its balance sheet and fund various corporate purposes. The offering, which includes prepaid stock purchase contracts and senior amortizing notes, is expected to enhance working capital and support potential acquisitions. Additionally, Novanta amended its credit agreement to increase leverage ratio limits. Analysts currently rate NOVT stock as a Hold with a price target of $115.00, reflecting strong financial performance but short-term risks due to high valuation and bearish technical indicators.

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The latest announcement is out from Novanta ( (NOVT) ).

On November 6, 2025, Novanta entered into an underwriting agreement to sell 11,000,000 tangible equity units at $50.00 per unit, with an over-allotment option for an additional 1,650,000 units, which was fully exercised by the underwriters on November 7, 2025. The units, issued on November 12, 2025, comprise prepaid stock purchase contracts and senior amortizing notes. The proceeds from this offering are intended to strengthen Novanta’s balance sheet, fund working capital, potential acquisitions, investments, and other corporate purposes. Additionally, Novanta amended its credit agreement to increase leverage ratio limits and cash netting against consolidated indebtedness, contingent upon issuing tangible equity units by December 31, 2025.

The most recent analyst rating on (NOVT) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Novanta stock, see the NOVT Stock Forecast page.

Spark’s Take on NOVT Stock

According to Spark, TipRanks’ AI Analyst, NOVT is a Neutral.

Novanta’s overall stock score reflects strong financial performance and a positive earnings call, offset by technical indicators suggesting bearish momentum and a high valuation. The company’s strategic initiatives and market leadership provide a positive long-term outlook, but current valuation and technical trends pose short-term risks.

To see Spark’s full report on NOVT stock, click here.

More about Novanta

Average Trading Volume: 527,309

Technical Sentiment Signal: Sell

Current Market Cap: $3.72B

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