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

Key Points

• Align Technology has a consensus analyst rating of “Moderate Buy” from 14 research firms, with eight buy ratings and six hold ratings. The average 12-month price target is about $205.85.
• The company recently posted strong quarterly results, earning $2.58 per share versus $2.26 expected and generating $1.04 billion in revenue, slightly above estimates. Revenue rose 6.2% year over year.
• Align Technology also announced a $200 million share repurchase program, which would allow it to buy back up to 1.6% of outstanding shares. The move suggests management may view the stock as undervalued.

Align Technology, Inc. (NASDAQ:ALGN - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the fourteen research firms that are covering the firm, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 1 year price objective among analysts that have covered the stock in the last year is $205.8462.

A number of research firms recently weighed in on ALGN. Wall Street Zen raised Align Technology from a "buy" rating to a "strong-buy" rating in a report on Saturday, March 7th. Mizuho boosted their target price on Align Technology from $200.00 to $215.00 and gave the stock an "outperform" rating in a report on Thursday, February 5th. UBS Group boosted their target price on Align Technology from $175.00 to $185.00 and gave the stock a "neutral" rating in a report on Thursday, February 5th. Jefferies Financial Group boosted their target price on Align Technology from $155.00 to $185.00 and gave the stock a "hold" rating in a report on Thursday, February 5th. Finally, Piper Sandler boosted their target price on Align Technology from $220.00 to $235.00 and gave the stock an "overweight" rating in a report on Tuesday, April 21st.

Insider Buying and Selling at Align Technology

In related news, EVP John Morici sold 7,969 shares of the business's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $189.31, for a total transaction of $1,508,611.39. Following the transaction, the executive vice president directly owned 8,237 shares of the company's stock, valued at approximately $1,559,346.47. The trade was a 49.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.75% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Capital International Investors grew its holdings in Align Technology by 52.2% in the 4th quarter. Capital International Investors now owns 4,643,221 shares of the medical equipment provider's stock valued at $725,039,000 after buying an additional 1,592,848 shares in the last quarter. Holocene Advisors LP acquired a new position in Align Technology in the 3rd quarter valued at $179,035,000. Ruane Cunniff & Goldfarb L.P. acquired a new position in Align Technology in the 4th quarter valued at $190,899,000. Norges Bank acquired a new position in Align Technology in the 4th quarter valued at $155,556,000. Finally, Assenagon Asset Management S.A. grew its holdings in Align Technology by 413.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 989,388 shares of the medical equipment provider's stock valued at $169,611,000 after buying an additional 796,529 shares in the last quarter. 88.43% of the stock is owned by institutional investors and hedge funds.

Align Technology Stock Up 0.2%

NASDAQ:ALGN opened at $168.78 on Friday. The firm has a market capitalization of $12.09 billion, a price-to-earnings ratio of 28.32, a price-to-earnings-growth ratio of 1.74 and a beta of 1.70. Align Technology has a twelve month low of $122.00 and a twelve month high of $208.30. The stock's 50 day moving average price is $178.11 and its two-hundred day moving average price is $165.34.

Align Technology (NASDAQ:ALGN - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The medical equipment provider reported $2.58 earnings per share for the quarter, topping the consensus estimate of $2.26 by $0.32. The firm had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.02 billion. Align Technology had a return on equity of 15.82% and a net margin of 10.50%.The business's quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.13 EPS. As a group, analysts anticipate that Align Technology will post 9.43 earnings per share for the current year.

Align Technology declared that its board has authorized a share repurchase program on Wednesday, April 29th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the medical equipment provider to repurchase up to 1.6% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Align Technology Company Profile

Align Technology, Inc NASDAQ: ALGN pioneered the use of digital technology in orthodontics through the development of the Invisalign system, a series of clear, removable aligners that provide an alternative to traditional metal braces. Since its founding in 1997 by Zia Chishti and Kelsey Wirth, the Tempe, Arizona–based company has expanded its focus to include intraoral scanners, CAD/CAM software for dental laboratories and comprehensive digital dentistry solutions.

The company's signature Invisalign system leverages 3D imaging and computer-aided design (CAD) to create customized aligners that gradually reposition teeth, improving patient comfort and treatment predictability.

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