Align Technology (NASDAQ:ALGN) Issues Earnings Results

Key Points

• Align Technology beat quarterly expectations: The company reported adjusted earnings of $2.64 per share versus the $2.62 analyst consensus, while revenue reached $1.06 billion compared with estimates of $1.05 billion.
• Shares rose 2.5% to $180.03 following the results. Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $206.36.
• The board authorized a $200 million share-repurchase program, allowing Align to buy back up to 1.6% of its outstanding shares; institutional investors own 88.43% of the stock.

Align Technology (NASDAQ:ALGN - Get Free Report) announced its quarterly earnings data on Wednesday. The medical equipment provider reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.62 by $0.02, FiscalAI reports. Align Technology had a return on equity of 15.82% and a net margin of 10.50%.The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.05 billion.

Align Technology Stock Up 2.5%

Shares of ALGN traded up $4.43 during trading hours on Wednesday, reaching $180.03. 1,616,084 shares of the company traded hands, compared to its average volume of 1,115,390. The stock has a market capitalization of $12.89 billion, a PE ratio of 30.21, a price-to-earnings-growth ratio of 1.72 and a beta of 1.67. The stock has a fifty day simple moving average of $173.90 and a 200 day simple moving average of $175.18. Align Technology has a fifty-two week low of $122.00 and a fifty-two week high of $207.08.

Institutional Investors Weigh In On Align Technology

Several hedge funds have recently modified their holdings of ALGN. Sunbelt Securities Inc. lifted its stake in shares of Align Technology by 222.4% during the fourth quarter. Sunbelt Securities Inc. now owns 158 shares of the medical equipment provider's stock valued at $25,000 after buying an additional 109 shares during the period. CYBER HORNET ETFs LLC acquired a new stake in shares of Align Technology during the second quarter worth $36,000. MUFG Securities EMEA plc purchased a new stake in shares of Align Technology in the second quarter valued at $38,000. Global Retirement Partners LLC grew its position in shares of Align Technology by 101.8% in the fourth quarter. Global Retirement Partners LLC now owns 230 shares of the medical equipment provider's stock valued at $36,000 after purchasing an additional 116 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its stake in Align Technology by 1,773.3% in the third quarter. Caitong International Asset Management Co. Ltd now owns 281 shares of the medical equipment provider's stock valued at $35,000 after purchasing an additional 266 shares during the last quarter. 88.43% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts recently commented on the stock. UBS Group reiterated a "neutral" rating and issued a $189.00 price objective on shares of Align Technology in a research note on Thursday, July 23rd. Citigroup assumed coverage on shares of Align Technology in a research report on Wednesday, April 15th. They set a "buy" rating and a $240.00 price target for the company. BMO Capital Markets initiated coverage on Align Technology in a research note on Wednesday, July 8th. They set an "outperform" rating and a $209.00 price target on the stock. Wall Street Zen upgraded Align Technology from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 4th. Finally, Morgan Stanley raised their price objective on Align Technology from $169.00 to $188.00 and gave the company an "equal weight" rating in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $206.36.

Align Technology announced that its board has approved a share repurchase plan on Wednesday, April 29th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the medical equipment provider to buy up to 1.6% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

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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