Align Technology (NASDAQ:ALGN) Downgraded by Weiss Ratings to Sell (D+)

Key Points

• Align Technology has been downgraded from a "hold (c-)" rating to a "sell (d+)" rating by Weiss Ratings, reflecting growing concerns among analysts.
• After reporting lower than expected quarterly earnings with earnings per share of $2.49 against a consensus estimate of $2.57, Align Technology has seen its stock price target adjusted downwards by several firms, including Morgan Stanley and Stifel Nicolaus.
• The company's Board of Directors has authorized a $200 million share repurchase plan, indicating a belief that the stock may be undervalued.

Align Technology (NASDAQ:ALGN - Get Free Report) was downgraded by analysts at Weiss Ratings from a "hold (c-)" rating to a "sell (d+)" rating in a report released on Wednesday,Weiss Ratings reports.

Several other research firms have also weighed in on ALGN. Morgan Stanley restated an "equal weight" rating and issued a $154.00 target price (down from $249.00) on shares of Align Technology in a report on Thursday, July 31st. Stifel Nicolaus reduced their target price on Align Technology from $275.00 to $200.00 and set a "buy" rating for the company in a report on Thursday, July 31st. Zacks Research upgraded Align Technology from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 30th. Mizuho set a $210.00 price target on Align Technology in a report on Thursday, July 31st. Finally, Piper Sandler cut their price target on Align Technology from $250.00 to $190.00 and set an "overweight" rating for the company in a report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Align Technology has a consensus rating of "Hold" and a consensus target price of $210.00.

Align Technology Stock Performance

Shares of NASDAQ ALGN traded up $1.67 during trading hours on Wednesday, hitting $132.14. The stock had a trading volume of 563,881 shares, compared to its average volume of 1,228,377. The company has a market capitalization of $9.58 billion, a P/E ratio of 22.30, a P/E/G ratio of 1.48 and a beta of 1.70. The firm's 50-day moving average price is $137.18 and its two-hundred day moving average price is $165.19. Align Technology has a 52 week low of $122.00 and a 52 week high of $246.19.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 EPS for the quarter, missing the consensus estimate of $2.57 by ($0.08). The firm had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.06 billion. Align Technology had a net margin of 11.04% and a return on equity of 13.36%. The company's quarterly revenue was down 1.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.41 EPS. Align Technology has set its Q3 2025 guidance at EPS. As a group, analysts expect that Align Technology will post 7.98 EPS for the current fiscal year.

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

Insiders Place Their Bets

In other Align Technology news, CEO Joseph M. Hogan bought 7,576 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were bought at an average price of $131.49 per share, for a total transaction 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 purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On Align Technology

Several large investors have recently made changes to their positions in the company. Czech National Bank lifted its stake in shares of Align Technology by 2.8% during the third quarter. Czech National Bank now owns 17,122 shares of the medical equipment provider's stock valued at $2,144,000 after acquiring an additional 468 shares during the period. M.E. Allison & CO. Inc. lifted its stake in Align Technology by 77.7% in the third quarter. M.E. Allison & CO. Inc. now owns 3,110 shares of the medical equipment provider's stock valued at $389,000 after buying an additional 1,360 shares during the period. Assenagon Asset Management S.A. lifted its stake in Align Technology by 322.9% in the third quarter. Assenagon Asset Management S.A. now owns 124,560 shares of the medical equipment provider's stock valued at $15,597,000 after buying an additional 95,105 shares during the period. Oak Thistle LLC acquired a new position in Align Technology in the third quarter valued at about $2,408,000. Finally, Corient Private Wealth LLC lifted its stake in Align Technology by 13.7% in the second quarter. Corient Private Wealth LLC now owns 11,972 shares of the medical equipment provider's stock valued at $2,267,000 after buying an additional 1,439 shares during the period. Institutional investors and hedge funds own 88.43% of the company's stock.

About Align Technology

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.

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