Align Technology, Inc. (NASDAQ:ALGN) Given Consensus Rating of "Hold" by Analysts

Key Points

• Align Technology, Inc. has received a consensus recommendation of "Hold" from analysts, with seven buy ratings, two sell ratings, and an average price target of $182.67.
• The company recently approved a stock repurchase program worth $200 million, which is a sign that its leadership believes the stock is currently undervalued.
• Align Technology's Q2 earnings report showed an EPS of $2.49, falling short of expectations by $0.08, and a revenue drop of 1.6% year-over-year.

Align Technology, Inc. (NASDAQ:ALGN - Get Free Report) has received a consensus recommendation of "Hold" from the seventeen research firms that are covering the stock, Marketbeat reports. Two analysts have rated the stock with a sell rating, seven have given a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $182.6667.

A number of research firms recently weighed in on ALGN. Wells Fargo & Company dropped their price target on Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st. Evercore ISI lowered their price objective on Align Technology from $170.00 to $160.00 and set an "outperform" rating for the company in a research note on Wednesday, October 8th. Morgan Stanley reissued an "equal weight" rating and issued a $154.00 price objective (down from $249.00) on shares of Align Technology in a research note on Thursday, July 31st. Zacks Research raised Align Technology from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 30th. Finally, Leerink Partners lowered their price objective on Align Technology from $188.00 to $172.00 and set an "outperform" rating for the company in a research note on Tuesday, October 14th.

Align Technology Trading Up 3.4%

ALGN stock opened at $134.93 on Tuesday. The stock has a 50-day moving average price of $134.72 and a 200-day moving average price of $163.23. Align Technology has a 1-year low of $122.00 and a 1-year high of $246.19. The firm has a market cap of $9.78 billion, a PE ratio of 22.75, a price-to-earnings-growth ratio of 1.48 and a beta of 1.70.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 EPS for the quarter, missing analysts' consensus estimates of $2.57 by ($0.08). Align Technology had a net margin of 11.04% and a return on equity of 13.36%. The firm had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.06 billion. During the same period in the previous year, the firm earned $2.41 earnings per share. The business's quarterly revenue was down 1.6% on a year-over-year basis. Align Technology has set its Q3 2025 guidance at EPS. On average, analysts forecast that Align Technology will post 7.98 earnings per share for the current year.

Align Technology announced that its Board of Directors has approved a stock repurchase program on Tuesday, August 5th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the medical equipment provider to purchase up to 2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity at Align Technology

In related news, CEO Joseph M. Hogan acquired 7,576 shares of the stock in a transaction dated Friday, August 1st. The stock was purchased at an average cost of $131.49 per share, with a total value of $996,168.24. Following the completion of the purchase, the chief executive officer directly owned 184,945 shares in the company, valued at $24,318,418.05. This trade represents a 4.27% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.66% of the stock is currently owned by company insiders.

Institutional Trading of Align Technology

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its position in shares of Align Technology by 2.2% during the first quarter. Vanguard Group Inc. now owns 8,441,592 shares of the medical equipment provider's stock valued at $1,341,031,000 after acquiring an additional 185,187 shares during the last quarter. Ninety One UK Ltd increased its position in shares of Align Technology by 58.7% during the first quarter. Ninety One UK Ltd now owns 1,937,555 shares of the medical equipment provider's stock valued at $307,800,000 after acquiring an additional 716,954 shares during the last quarter. Invesco Ltd. increased its position in shares of Align Technology by 12.7% during the first quarter. Invesco Ltd. now owns 1,219,715 shares of the medical equipment provider's stock valued at $193,764,000 after acquiring an additional 137,553 shares during the last quarter. Federated Hermes Inc. increased its position in shares of Align Technology by 31.0% during the second quarter. Federated Hermes Inc. now owns 926,733 shares of the medical equipment provider's stock valued at $175,458,000 after acquiring an additional 219,219 shares during the last quarter. Finally, Disciplined Growth Investors Inc. MN increased its position in shares of Align Technology by 0.9% during the second quarter. Disciplined Growth Investors Inc. MN now owns 844,987 shares of the medical equipment provider's stock valued at $159,981,000 after acquiring an additional 7,754 shares during the last quarter. 88.43% of the stock is owned by hedge funds and other institutional investors.

Align Technology Company Profile

Align Technology, Inc designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists in the United States, Switzerland, and internationally. The company's Clear Aligner segment offers comprehensive products, including Invisalign comprehensive package that addresses the orthodontic needs of younger patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of six and ten years, which is a mixture of primary/baby and permanent teeth.

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