Piper Sandler Has Lowered Expectations for Align Technology (NASDAQ:ALGN) Stock Price

Key Points

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Align Technology (NASDAQ:ALGN - Free Report) had its price target reduced by Piper Sandler from $250.00 to $190.00 in a report released on Thursday,Benzinga reports. They currently have an overweight rating on the medical equipment provider's stock.

A number of other research firms have also weighed in on ALGN. Needham & Company LLC reaffirmed a "hold" rating on shares of Align Technology in a research note on Thursday, May 1st. HSBC lowered Align Technology from a "buy" rating to a "hold" rating and dropped their price objective for the stock from $290.00 to $170.00 in a research note on Friday, April 25th. Wells Fargo & Company decreased their target price on Align Technology from $255.00 to $246.00 and set an "overweight" rating on the stock in a research report on Thursday, May 1st. Morgan Stanley reiterated an "equal weight" rating and issued a $154.00 target price (down from $249.00) on shares of Align Technology in a research report on Thursday. Finally, Hsbc Global Res downgraded Align Technology from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 25th. One equities research 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 data from MarketBeat, Align Technology currently has a consensus rating of "Moderate Buy" and an average target price of $215.00.

Align Technology Stock Up 5.8%

NASDAQ:ALGN traded up $7.51 during mid-day trading on Thursday, hitting $136.52. 7,974,235 shares of the company traded hands, compared to its average volume of 1,575,058. The stock's fifty day moving average price is $187.04 and its 200-day moving average price is $185.60. Align Technology has a one year low of $127.70 and a one year high of $262.87. The firm has a market cap of $9.90 billion, a price-to-earnings ratio of 23.02, a price-to-earnings-growth ratio of 1.36 and a beta of 1.61.

Align Technology (NASDAQ:ALGN - Get Free Report) last released its quarterly 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). The company had revenue of $1.01 billion for 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 business's revenue for the quarter was down 1.6% on a year-over-year basis. During the same period in the prior year, the firm posted $2.41 EPS. Equities analysts predict that Align Technology will post 7.98 EPS for the current year.

Align Technology declared that its Board of Directors has authorized a stock buyback program on Tuesday, May 6th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the medical equipment provider to purchase up to 7.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Align Technology

In related news, CEO Joseph M. Hogan bought 7,576 shares of the 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 acquisition, the chief executive officer directly owned 184,945 shares in the company, valued at approximately $24,318,418.05. This trade represents a 4.27% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.66% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ALGN. Teacher Retirement System of Texas purchased a new stake in Align Technology in the first quarter valued at approximately $1,647,000. Asset Management One Co. Ltd. raised its position in Align Technology by 14.5% in the first quarter. Asset Management One Co. Ltd. now owns 31,624 shares of the medical equipment provider's stock valued at $5,024,000 after purchasing an additional 4,009 shares during the period. Giverny Capital Inc. raised its position in Align Technology by 30.3% in the fourth quarter. Giverny Capital Inc. now owns 43,006 shares of the medical equipment provider's stock valued at $8,967,000 after purchasing an additional 10,013 shares during the period. Schonfeld Strategic Advisors LLC raised its position in Align Technology by 1,679.5% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 35,110 shares of the medical equipment provider's stock valued at $7,321,000 after purchasing an additional 33,137 shares during the period. Finally, American Assets Inc. purchased a new stake in Align Technology in the fourth quarter valued at approximately $417,000. 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.