Align Technology, Inc. (NASDAQ:ALGN) Sees Large Increase in Short Interest

Key Points

• Short interest surged 46.8% in March to 4,352,518 shares as of March 31, equal to about 6.1% of the stock and a days-to-cover of 3.3 based on average daily volume.
• Align beat quarterly expectations with EPS of $3.29 vs. $2.99 expected and $1.05B in revenue, and several analysts raised price targets leaving the consensus rating at "Moderate Buy" with an average target of $198.08.
• EVP John Morici sold 7,969 shares in February (a 49.17% reduction in his holding); insiders now own 0.66% of the company while institutional investors hold roughly 88.43%.

Align Technology, Inc. (NASDAQ:ALGN - Get Free Report) was the target of a significant growth in short interest in the month of March. As of March 31st, there was short interest totaling 4,352,518 shares, a growth of 46.8% from the March 15th total of 2,964,353 shares. Approximately 6.1% of the company's stock are short sold. Based on an average daily volume of 1,320,228 shares, the days-to-cover ratio is currently 3.3 days.

Align Technology Price Performance

Shares of NASDAQ ALGN opened at $180.67 on Tuesday. The stock has a market capitalization of $12.94 billion, a P/E ratio of 31.92, a P/E/G ratio of 1.89 and a beta of 1.81. The company has a 50-day moving average price of $178.36 and a 200-day moving average price of $159.22. Align Technology has a 1 year low of $122.00 and a 1 year high of $208.30.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The medical equipment provider reported $3.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.99 by $0.30. The firm had revenue of $1.05 billion during the quarter, compared to analysts' expectations of $1.03 billion. Align Technology had a net margin of 10.17% and a return on equity of 15.16%. The business's revenue was up 5.3% on a year-over-year basis. During the same period last year, the company earned $2.44 earnings per share. As a group, equities research analysts anticipate that Align Technology will post 7.98 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have commented on ALGN. Leerink Partners raised their price target on shares of Align Technology from $210.00 to $225.00 and gave the stock an "outperform" rating in a report on Thursday, February 5th. Robert W. Baird set a $218.00 price target on shares of Align Technology in a report on Thursday, February 5th. Morgan Stanley raised their price target on shares of Align Technology from $154.00 to $169.00 and gave the stock an "equal weight" rating in a report on Thursday, February 5th. Weiss Ratings upgraded shares of Align Technology from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, January 16th. Finally, Wells Fargo & Company raised their price target on shares of Align Technology from $181.00 to $200.00 and gave the stock an "overweight" rating in a report on Thursday, February 5th. Seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $198.08.

Insider Buying and Selling

In other Align Technology news, EVP John Morici sold 7,969 shares of the firm's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $189.31, for a total value of $1,508,611.39. Following the completion of the sale, the executive vice president directly owned 8,237 shares in the company, valued at approximately $1,559,346.47. This trade represents a 49.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.66% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ALGN. Wealth Enhancement Advisory Services LLC lifted its position in shares of Align Technology by 38.9% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 15,551 shares of the medical equipment provider's stock valued at $2,029,000 after purchasing an additional 4,359 shares in the last quarter. AE Wealth Management LLC bought a new position in shares of Align Technology during the third quarter valued at about $650,000. Dana Investment Advisors Inc. bought a new position in shares of Align Technology during the third quarter valued at about $9,991,000. AIA Group Ltd bought a new position in shares of Align Technology during the third quarter valued at about $2,507,000. Finally, Hussman Strategic Advisors Inc. bought a new position in shares of Align Technology during the third quarter valued at about $3,156,000. 88.43% of the stock is currently owned by institutional investors and hedge funds.

About Align Technology

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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