Key Points
Added 163,005 shares; estimated transaction value of $18.56 million based on quarterly average pricing
Quarter-end NOVT position value rose by $23.52 million, reflecting both trading activity and price movement
Transaction equaled a 0.82% shift in reported AUM
Post-trade stake: 381,866 shares valued at $45.44 million
NOVT now represents 2% of fund AUM, which places it outside the fund's top five holdings
On February 17, 2026, American Capital Management Inc reported a buy of Novanta(NASDAQ:NOVT), adding 163,005 shares in the fourth quarter for an estimated $18.56 million trade based on quarterly average pricing.
Novanta delivers advanced photonics and precision motion components for medical and industrial original equipment manufacturers worldwide.
What Happened
According to its SEC filing dated February 17, 2026, American Capital Management Inc increased its position in Novanta by 163,005 shares during the fourth quarter. The estimated value of these purchases was $18.56 million, calculated using the average closing price over the quarter. At quarter end, the fund held 381,866 shares valued at $45.44 million. The total value of the NOVT stake rose $23.52 million from the prior quarter, a change reflecting both share additions and price appreciation.
What Else to Know
This was a buy, raising NOVT’s weight to 2% of 13F reportable AUM.
Top holdings after the filing:
- 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 February 17, 2026, shares were priced at $145.37, up 1% over the past year, underperforming the S&P 500 by 10.4 percentage points.
The fund reported 68 positions and overall 13F assets of $2.27 billion as of December 31, 2025.
Company Overview
| 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 |
Company Snapshot
- Offers photonics, vision, and precision motion components and subsystems, including laser scanning, medical visualization, and motion control solutions.
- Generates revenue by designing, manufacturing, and selling specialized hardware and equipment to original equipment manufacturers across medical and industrial markets.
- Serves OEMs in the medical, life sciences, and industrial automation sectors worldwide, with a focus on high-performance and mission-critical applications.
Novanta is a technology company specializing in advanced photonics, vision, and precision motion solutions for medical and industrial OEM customers. The company leverages a broad portfolio of proprietary technologies and brands to address demanding applications in healthcare and manufacturing. With a global footprint and a focus on innovation, Novanta maintains a competitive edge by delivering high-value, mission-critical components that enable next-generation equipment and systems.
What This Transaction Means for Investors
By adding about 163,000 shares of Novanta, American Capital has shown its faith in the stock. Here’s what investors need to know about this transaction and Novanta stock.
To start, we must discuss Novanta’s stock performance. While the stock has moved upward in recent months, over longer time horizons, the stock simply hasn’t moved much. Over the last 12 months, for example, Novanta stock is up only 1%. Indeed, over the last five years, the stock has generated a total return of 2.6%, equating to a compound annual growth rate (CAGR) of 0.5%.
On the plus side of the ledger, there are signs of a pickup in the medical and industrial OEM market, indicating that the post-pandemic glut of materials is clearing, making way for Novanta’s core business to pick up steam. In addition, the company has maintained healthy gross margins — even in the face of trade and tariff uncertainty.
On the other hand, revenue growth remains meager at 1.4%. Valuation is also elevated. Novanta’s price-to-earnings (P/E) ratio stands at 99x — far above the market average.
In sum, American Capital is adding to its position in Novanta, banking on the acceleration of the stock’s recent strong performance. However, some investors may remain skeptical, given the stock’s lofty valuation.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment, Kratos Defense & Security Solutions, and Medpace. The Motley Fool recommends Idexx Laboratories. The Motley Fool has a disclosure policy.
