Stock Buyback Program Authorized by Align Technology (NASDAQ:ALGN) Board of Directors

Key Points

• Align Technology's Board of Directors has authorized a $200 million share buyback program, allowing up to 2% of its shares to be repurchased, signaling confidence in the stock's value.
• Analyst ratings indicate a shift in sentiment, with target prices decreased by several firms; Align currently holds an average rating of "Moderate Buy" with a price target of $215.
• CEO Joseph M. Hogan recently purchased 7,576 shares of the company at an average price of $131.49, reflecting a 4.27% increase in his ownership stake.

Align Technology (NASDAQ:ALGN - Get Free Report) announced that its Board of Directors has approved a stock buyback plan on Tuesday, August 5th, RTT News reports. The company plans to buyback $200.00 million in outstanding shares. This buyback authorization permits the medical equipment provider to repurchase up to 2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

Align Technology Price Performance

Align Technology stock traded up $0.98 during trading hours on Friday, reaching $139.75. The stock had a trading volume of 960,206 shares, compared to its average volume of 1,198,693. The company has a market cap of $10.13 billion, a price-to-earnings ratio of 23.60, a PEG ratio of 1.54 and a beta of 1.61. Align Technology has a 52 week low of $127.70 and a 52 week high of $262.87. The business's 50 day moving average price is $183.85 and its 200-day moving average price is $183.33.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Hsbc Global Res lowered Align Technology from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 25th. HSBC lowered shares of Align Technology from a "buy" rating to a "hold" rating and cut their price objective for the company from $290.00 to $170.00 in a report on Friday, April 25th. Evercore ISI lifted their target price on Align Technology from $200.00 to $220.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Wells Fargo & Company lowered their price objective on shares of Align Technology from $246.00 to $199.00 and set an "overweight" rating for the company in a research report on Thursday, July 31st. Finally, Needham & Company LLC reiterated a "hold" rating on shares of Align Technology in a report on Thursday, May 1st. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Align Technology has a consensus rating of "Moderate Buy" and a consensus target price of $215.00.

Insider Activity at Align Technology

In other news, CEO Joseph M. Hogan acquired 7,576 shares of the business's stock in a transaction dated Friday, August 1st. The shares were acquired at an average cost of $131.49 per share, with a total value of $996,168.24. Following the completion of the acquisition, the chief executive officer owned 184,945 shares of the company's stock, valued at approximately $24,318,418.05. This trade represents a 4.27% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 0.66% of the company's stock.

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.