Align Technology (NASDAQ:ALGN) Sets New 12-Month Low After Earnings Miss

Key Points

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Align Technology, Inc. (NASDAQ:ALGN - Get Free Report) shares hit a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $139.96 and last traded at $140.66, with a volume of 3361113 shares traded. The stock had previously closed at $203.57.

The medical equipment provider reported $2.49 earnings per share 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 analyst estimates of $1.06 billion. Align Technology had a return on equity of 13.36% and a net margin of 11.04%. The company's revenue for the quarter was down 1.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.41 earnings per share.

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.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Wells Fargo & Company decreased their price objective on Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a report on Thursday. Morgan Stanley reissued an "equal weight" rating and issued a $154.00 target price (down previously from $249.00) on shares of Align Technology in a research report on Thursday. Needham & Company LLC reissued a "hold" rating on shares of Align Technology in a research report on Thursday, May 1st. Evercore ISI boosted their target price on Align Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Finally, Hsbc Global Res lowered Align Technology from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 25th. One research analyst has rated the stock with a sell rating, five have given a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $215.00.

Insider Buying and Selling

In other Align Technology news, CEO Joseph M. Hogan bought 7,576 shares of the company's stock in a transaction that occurred on Friday, August 1st. The shares were purchased at an average price of $131.49 per share, with a total value of $996,168.24. Following the completion of the acquisition, the chief executive officer directly owned 184,945 shares of the company's stock, valued at $24,318,418.05. This represents a 4.27% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On Align Technology

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in Align Technology by 2.2% in the first quarter. Vanguard Group Inc. now owns 8,441,592 shares of the medical equipment provider's stock valued at $1,341,031,000 after acquiring an additional 185,187 shares in the last quarter. Ninety One UK Ltd boosted its stake in shares of Align Technology by 58.7% during the first quarter. Ninety One UK Ltd now owns 1,937,555 shares of the medical equipment provider's stock worth $307,800,000 after buying an additional 716,954 shares during the period. Geode Capital Management LLC boosted its stake in shares of Align Technology by 2.2% during the fourth quarter. Geode Capital Management LLC now owns 1,790,014 shares of the medical equipment provider's stock worth $372,299,000 after buying an additional 39,209 shares during the period. Invesco Ltd. boosted its stake in shares of Align Technology by 12.7% during the first quarter. Invesco Ltd. now owns 1,219,715 shares of the medical equipment provider's stock worth $193,764,000 after buying an additional 137,553 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Align Technology by 32.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 832,313 shares of the medical equipment provider's stock worth $132,221,000 after buying an additional 202,616 shares during the period. Institutional investors and hedge funds own 88.43% of the company's stock.

Align Technology Price Performance

The firm has a market cap of $9.90 billion, a price-to-earnings ratio of 23.02, a P/E/G ratio of 1.36 and a beta of 1.61. The firm's 50 day moving average price is $187.04 and its two-hundred day moving average price is $185.60.

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.