Align Technology, Inc. (NASDAQ:ALGN) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Align Technology has an average analyst recommendation of "Moderate Buy", with a consensus price target of $215.00 among the fifteen analysts covering the stock.
• The company reported a net margin of 11.04% and a revenue decrease of 1.6% year-over-year, with quarterly earnings of $2.49 per share that fell short of expectations.
• Align Technology's board has authorized a $1.00 billion stock repurchase program, indicating confidence in the company's valuation.

Shares of Align Technology, Inc. (NASDAQ:ALGN - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the fifteen ratings firms that are covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, five have given a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $215.00.

Several research analysts have commented on ALGN shares. Hsbc Global Res downgraded Align Technology from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 25th. Needham & Company LLC reaffirmed a "hold" rating on shares of Align Technology in a research report on Thursday, May 1st. Mizuho set a $210.00 price target on shares of Align Technology in a report on Thursday, July 31st. Stifel Nicolaus dropped their price objective on shares of Align Technology from $275.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, July 31st. Finally, UBS Group cut their price objective on shares of Align Technology from $240.00 to $215.00 and set a "neutral" rating for the company in a research report on Thursday, April 24th.

Align Technology Trading Up 0.8%

ALGN traded up $1.11 during trading on Thursday, hitting $139.88. The stock had a trading volume of 1,727,978 shares, compared to its average volume of 1,204,636. The firm has a market cap of $10.14 billion, a PE ratio of 23.59, a P/E/G ratio of 1.54 and a beta of 1.61. Align Technology has a 12 month low of $127.70 and a 12 month high of $262.87. The company has a 50 day simple moving average of $183.85 and a 200-day simple moving average of $183.33.

Align Technology (NASDAQ:ALGN - Get Free Report) last posted its quarterly earnings data 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 return on equity of 13.36% and a net margin of 11.04%. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.06 billion. During the same quarter in the previous year, the firm posted $2.41 earnings per share. The company's revenue for the quarter was down 1.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Align Technology will post 7.98 earnings per share for the current fiscal year.

Align Technology declared that its Board of Directors has initiated a share buyback plan on Tuesday, May 6th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the medical equipment provider to repurchase up to 7.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its shares are undervalued.

Insider Activity at Align Technology

In other news, CEO Joseph M. Hogan bought 7,576 shares of the company's stock in a transaction that occurred on Friday, August 1st. The stock was acquired at an average price of $131.49 per share, for a total transaction of $996,168.24. Following the transaction, the chief executive officer directly owned 184,945 shares of the company's stock, valued at $24,318,418.05. This trade represents a 4.27% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.66% of the company's stock.

Institutional Investors Weigh In On Align Technology

A number of large investors have recently bought and sold shares of ALGN. True Wealth Design LLC boosted its stake in Align Technology by 7,650.0% in the second quarter. True Wealth Design LLC now owns 155 shares of the medical equipment provider's stock worth $29,000 after purchasing an additional 153 shares in the last quarter. GKV Capital Management Co. Inc. bought a new position in shares of Align Technology in the fourth quarter valued at about $31,000. Compagnie Lombard Odier SCmA acquired a new position in Align Technology during the 1st quarter worth about $32,000. Cromwell Holdings LLC grew its holdings in Align Technology by 2,900.0% during the 2nd quarter. Cromwell Holdings LLC now owns 180 shares of the medical equipment provider's stock worth $34,000 after acquiring an additional 174 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new stake in Align Technology during the 4th quarter worth about $35,000. 88.43% of the stock is currently owned by 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.