American Capital Management Doubles Down on Novanta Stock, According to Latest SEC Filing

Novanta delivers advanced photonics and precision motion components for medical and industrial OEMs worldwide.On February 17, 2026, American Capital Management Inc reported a buy of Novanta (NOVT 0.49%), 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 HappenedAccording 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 KnowThis 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 OverviewMetricValuePrice (as of market close February 17, 2026)$145.37Market capitalization$5.24 billionRevenue (TTM)$960.31 millionNet income (TTM)$52.82 millionCompany SnapshotOffers 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 InvestorsBy 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.About the AuthorJake Lerch is a contributing Motley Fool technology analyst covering artificial intelligence, cloud computing, cybersecurity, e-commerce, and semiconductors. Prior to The Motley Fool, Jake worked for 12 years at Credit Suisse, an international investment bank. He holds a bachelor’s degree in business with a concentration in economics from the University of North Carolina at Wilmington.TMFRescueDogStocks MentionedNovantaNASDAQ: NOVT$144.91 (0.49%) $0.72*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.