Align Technology (NASDAQ:ALGN) Downgraded by Zacks Research to Strong Sell

Key Points

• Align Technology has been downgraded from a "hold" to a "strong sell" rating by Zacks Research, highlighting concerns about its stock performance.
• Despite the downgrade, analysts remain divided, with one strong buy, eight buy ratings, and a consensus target price of $215.00.
• Align Technology announced a $1.00 billion share repurchase plan, indicating confidence from management in the company’s stock value.

Align Technology (NASDAQ:ALGN - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday,Zacks.com reports.

A number of other research analysts also recently commented on the company. Piper Sandler reduced their target price on Align Technology from $250.00 to $190.00 and set an "overweight" rating on the stock in a report on Thursday, July 31st. Evercore ISI increased 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. Stifel Nicolaus reduced their target price on Align Technology from $275.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, July 31st. Wells Fargo & Company reduced their target price on Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a report on Thursday, July 31st. Finally, Mizuho set a $210.00 target price on Align Technology in a report on Thursday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Align Technology currently has an average rating of "Moderate Buy" and an average price target of $215.00.

Align Technology Stock Performance

Shares of ALGN stock traded up $4.42 during trading hours on Monday, reaching $139.12. The company had a trading volume of 1,058,096 shares, compared to its average volume of 1,349,524. Align Technology has a twelve month low of $127.70 and a twelve month high of $262.87. The company has a market capitalization of $10.08 billion, a P/E ratio of 23.46, a price-to-earnings-growth ratio of 1.57 and a beta of 1.65. The stock's fifty day simple moving average is $166.65 and its 200 day simple moving average is $172.01.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its quarterly 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). The business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $1.06 billion. Align Technology had a net margin of 11.04% and a return on equity of 13.36%. The company's revenue for the quarter was down 1.6% on a year-over-year basis. During the same period in the prior year, the company posted $2.41 EPS. Align Technology has set its Q3 2025 guidance at EPS. As a group, equities analysts expect that Align Technology will post 7.98 earnings per share for the current year.

Align Technology announced that its Board of Directors has authorized a share repurchase program on Tuesday, August 5th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the medical equipment provider to purchase up to 2% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at Align Technology

In related news, CEO Joseph M. Hogan purchased 7,576 shares of the company's stock in a transaction dated Friday, August 1st. The shares were acquired at an average cost of $131.49 per share, for a total transaction of $996,168.24. Following the transaction, the chief executive officer owned 184,945 shares of the company's stock, valued at $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 hyperlink. Insiders own 0.66% of the company's stock.

Institutional Trading of Align Technology

Large investors have recently added to or reduced their stakes in the business. Rothschild Investment LLC increased its position in Align Technology by 140.3% in the 2nd quarter. Rothschild Investment LLC now owns 149 shares of the medical equipment provider's stock valued at $28,000 after acquiring an additional 87 shares during the period. True Wealth Design LLC increased its position in Align Technology by 7,650.0% in the 2nd quarter. True Wealth Design LLC now owns 155 shares of the medical equipment provider's stock valued at $29,000 after acquiring an additional 153 shares during the period. Compagnie Lombard Odier SCmA acquired a new position in shares of Align Technology during the 1st quarter valued at $32,000. Cromwell Holdings LLC increased its position in shares of Align Technology by 2,900.0% during the 2nd quarter. Cromwell Holdings LLC now owns 180 shares of the medical equipment provider's stock valued at $34,000 after purchasing an additional 174 shares during the period. Finally, Center for Financial Planning Inc. acquired a new position in shares of Align Technology during the 1st quarter valued at $35,000. 88.43% of the stock is currently owned by institutional investors and hedge funds.

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.