Core Insights - Conestoga Capital Advisors sold 168,907 shares of Novanta for approximately $20.1 million in the third quarter, reducing its holdings to just over 1.4 million shares [2][3][7] - Novanta represents 2.3% of Conestoga's reportable U.S. equity assets under management as of September 30, with the stock price at $128.65, down 26% over the past year [3][4] - Novanta's revenue for the trailing twelve months (TTM) is $956.9 million, with a net income of $61.4 million [4] Company Overview - Novanta Inc. specializes in advanced photonics, vision, and precision motion solutions for medical and industrial markets, leveraging a diversified portfolio of proprietary technologies [6][9] - The company generates revenue primarily through sales of proprietary hardware and integrated systems to original equipment manufacturers (OEMs) [9] - Novanta serves global medical and industrial OEMs, targeting sectors such as medical imaging, life sciences, industrial processing, and automation [9] Recent Performance - Novanta's second-quarter results showed flat organic growth and a decline in GAAP profit to $4.5 million from $13.8 million a year prior, although adjusted earnings remained steady at $0.76 per share [11] - Conestoga's decision to reduce its stake in Novanta reflects concerns over the stock's weak performance relative to the market, rather than a loss of confidence in the company's fundamentals [7][10] - The company is noted to be lagging behind cyclical and semiconductor names, indicating sector headwinds affecting its performance [10]