Align Technology (NASDAQ:ALGN) Posts Earnings Results

Key Points

• Align Technology reported an EPS of $1.83 for the quarter, which was below the consensus estimate of $2.57, indicating a potential concern about the company's financial performance.
• As of the latest trading, shares of Align Technology are down to $203.57, showing a decline and falling short of the company's previous high of $262.87 within the year.
• The company's board has approved a $1 billion stock buyback program, suggesting that management believes the stock is currently undervalued.

Align Technology (NASDAQ:ALGN - Get Free Report) posted its earnings results on Wednesday. The medical equipment provider reported $2.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.57 by ($0.08), Briefing.com reports. Align Technology had a net margin of 11.04% and a return on equity of 13.41%. The business had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $1.06 billion. During the same period last year, the firm posted $2.41 earnings per share. Align Technology's quarterly revenue was down 1.6% on a year-over-year basis. Align Technology updated its Q3 2025 guidance to EPS.

Align Technology Stock Up 7.0%

Shares of NASDAQ ALGN traded up $9.04 during trading on Friday, reaching $138.05. 4,461,013 shares of the company traded hands, compared to its average volume of 1,149,513. The firm has a 50 day simple moving average of $187.73 and a 200-day simple moving average of $186.11. Align Technology has a 52-week low of $127.70 and a 52-week high of $262.87. The stock has a market capitalization of $10.01 billion, a PE ratio of 23.27, a P/E/G ratio of 2.15 and a beta of 1.63.

Align Technology declared that its Board of Directors has authorized a share buyback program on Tuesday, May 6th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the medical equipment provider to reacquire up to 7.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Align Technology stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 4.8% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 10,222 shares of the medical equipment provider's stock after buying an additional 469 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.'s holdings in Align Technology were worth $1,624,000 as of its most recent SEC filing. Institutional investors and hedge funds own 88.43% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have issued reports on ALGN. Evercore ISI boosted their price objective on shares of Align Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Wells Fargo & Company reduced their price target on shares of Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a research report on Thursday. Stifel Nicolaus decreased their price target on shares of Align Technology from $275.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday. Mizuho set a $210.00 price objective on Align Technology in a research report on Thursday. Finally, Morgan Stanley reiterated an "equal weight" rating and set a $154.00 target price (down previously from $249.00) on shares of Align Technology in a report on Thursday. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Align Technology currently has a consensus rating of "Moderate Buy" and a consensus price target of $215.00.

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.