Align Technology (NASDAQ:ALGN) Reaches New 12-Month Low - Here's What Happened

Key Points

• Align Technology's share price has reached a new 12-month low, trading at $127.62, with the stock showing a decline in the number of shares traded (564,095).
• Analysts have made significant adjustments to their price targets for the company, with varying recommendations ranging from a "strong sell" to a "buy" rating, reflecting mixed market sentiment.
• Align Technology has implemented a $200 million stock buyback program, suggesting that management believes the shares are undervalued amidst recent stock performance challenges.

Align Technology, Inc. (NASDAQ:ALGN - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $127.62 and last traded at $128.08, with a volume of 564095 shares traded. The stock had previously closed at $129.00.

Analysts Set New Price Targets

A number of analysts recently weighed in on ALGN shares. Mizuho set a $210.00 target price on Align Technology in a report on Thursday, July 31st. Piper Sandler cut their price target on shares of Align Technology from $250.00 to $190.00 and set an "overweight" rating for the company in a report on Thursday, July 31st. Zacks Research downgraded Align Technology from a "hold" rating to a "strong sell" rating in a research note on Monday, September 1st. Stifel Nicolaus reduced their price objective 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, July 31st. Finally, Morgan Stanley reissued an "equal weight" rating and set a $154.00 target price (down from $249.00) on shares of Align Technology in a research report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $215.00.

Align Technology Stock Down 0.6%

The firm has a market capitalization of $9.29 billion, a price-to-earnings ratio of 21.63, a price-to-earnings-growth ratio of 1.48 and a beta of 1.65. The firm has a 50 day moving average of $151.18 and a two-hundred day moving average of $167.80.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced 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 analyst estimates of $1.06 billion. Align Technology had a return on equity of 13.36% and a net margin of 11.04%.The firm's quarterly revenue was down 1.6% on a year-over-year basis. During the same quarter last year, the company posted $2.41 earnings per share. Align Technology has set its Q3 2025 guidance at EPS. Sell-side analysts forecast that Align Technology, Inc. will post 7.98 EPS for the current fiscal year.

Align Technology declared that its Board of Directors has initiated a stock buyback program on Tuesday, August 5th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the medical equipment provider to repurchase up to 2% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Align Technology

In related news, CEO Joseph M. Hogan purchased 7,576 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was bought at an average price of $131.49 per share, with a total value of $996,168.24. Following the completion of the purchase, the chief executive officer owned 184,945 shares in the company, valued at approximately $24,318,418.05. This represents a 4.27% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.66% of the company's stock.

Institutional Investors Weigh In On Align Technology

Several hedge funds and other institutional investors have recently bought and sold shares of ALGN. Teacher Retirement System of Texas bought a new stake in Align Technology in the 1st quarter valued at about $1,647,000. Asset Management One Co. Ltd. increased its position in shares of Align Technology by 14.5% during the first quarter. Asset Management One Co. Ltd. now owns 31,624 shares of the medical equipment provider's stock worth $5,024,000 after acquiring an additional 4,009 shares in the last quarter. Czech National Bank raised its stake in shares of Align Technology by 3.3% in the second quarter. Czech National Bank now owns 16,654 shares of the medical equipment provider's stock worth $3,153,000 after purchasing an additional 537 shares during the last quarter. Acadian Asset Management LLC purchased a new stake in Align Technology in the 1st quarter valued at $20,194,000. Finally, American Assets Inc. bought a new position in Align Technology during the 4th quarter valued at $417,000. 88.43% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.