Align Technology (NASDAQ:ALGN) Stock Moved Down to "Strong Sell" by Zacks Research

Key Points

• Zacks Research downgraded Align Technology to “strong sell” from “hold,” although the broader analyst consensus remains “moderate buy,” with an average price target of $194.14.
• ALGN shares fell 1.4% to $147.31, trading below both their 50-day and 200-day moving averages and well below the 12-month high of $200.43.
• Align’s latest quarterly results modestly exceeded expectations, with earnings of $2.64 per share and revenue of $1.06 billion; institutional investors own 88.43% of the company.

Align Technology (NASDAQ:ALGN - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday, Zacks reports.

A number of other brokerages also recently weighed in on ALGN. Wall Street Zen downgraded shares of Align Technology from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st. Stifel Nicolaus decreased their price objective on shares of Align Technology from $210.00 to $175.00 and set a "buy" rating on the stock in a research note on Friday, October 9th. Weiss Ratings upgraded shares of Align Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 9th. Raymond James Financial restated a "buy" rating on shares of Align Technology in a research report on Monday, October 5th. Finally, Leerink Partners cut their target price on Align Technology from $235.00 to $215.00 and set an "outperform" rating for the company in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $194.14.

Align Technology Stock Down 1.4%

Shares of ALGN stock traded down $2.03 during trading on Thursday, reaching $147.31. 952,959 shares of the company's stock were exchanged, compared to its average volume of 990,319. The stock has a market capitalization of $10.55 billion, a PE ratio of 25.62, a PEG ratio of 1.59 and a beta of 1.67. Align Technology has a twelve month low of $128.67 and a twelve month high of $200.43. The firm's fifty day moving average price is $154.01 and its 200-day moving average price is $167.18.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced its earnings results on Wednesday, July 29th. The medical equipment provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.62 by $0.02. The company had revenue of $1.06 billion during the quarter, compared to analysts' expectations of $1.05 billion. Align Technology had a net margin of 9.99% and a return on equity of 15.86%. Align Technology's quarterly revenue was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.49 earnings per share. As a group, analysts anticipate that Align Technology will post 9.36 EPS for the current fiscal year.

Institutional Trading of Align Technology

Hedge funds have recently added to or reduced their stakes in the stock. Assenagon Asset Management S.A. increased its holdings in shares of Align Technology by 638.7% during the third quarter. Assenagon Asset Management S.A. now owns 4,662,437 shares of the medical equipment provider's stock worth $629,469,000 after buying an additional 4,031,284 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Align Technology during the 2nd quarter valued at $745,370,000. Vontobel Holding Ltd. boosted its stake in shares of Align Technology by 69,628.9% during the third quarter. Vontobel Holding Ltd. now owns 1,385,513 shares of the medical equipment provider's stock valued at $183,335,000 after purchasing an additional 1,383,526 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Align Technology by 4.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,054,633 shares of the medical equipment provider's stock worth $180,796,000 after acquiring an additional 49,220 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in Align Technology by 21.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 972,519 shares of the medical equipment provider's stock valued at $166,696,000 after acquiring an additional 170,523 shares during the period. Institutional investors and hedge funds own 88.43% of the company's stock.

Align Technology Company Profile

Align Technology, Inc is a medical device and digital technology company that designs, manufactures and markets products used in orthodontics and restorative dentistry. The company is best known for Invisalign clear aligners, which are custom-made orthodontic devices intended to gradually move patients' teeth under the supervision of dental professionals.

Align also develops the iTero family of intraoral scanners and related digital imaging systems, which help dental professionals create digital impressions and treatment plans.

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