20,000 Shares in Align Technology, Inc. (NASDAQ:ALGN) Acquired by Alberta Investment Management Corp

Key Points

• Alberta Investment Management Corp has acquired 20,000 shares of Align Technology, Inc. for approximately $3.18 million, indicating strong interest from institutional investors as they now hold 88.43% of the company’s stock.
• Align Technology reported a miss in earnings with $2.49 EPS, falling short of analysts' expectations of $2.57, and its revenue declined by 1.6% year-over-year to $1.01 billion.
• The company has announced a $1 billion stock repurchase plan that reflects the board's confidence in the stock's valuation, aiming to repurchase up to 7.9% of its total shares.

Alberta Investment Management Corp purchased a new position in Align Technology, Inc. (NASDAQ:ALGN - Free Report) during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 20,000 shares of the medical equipment provider's stock, valued at approximately $3,177,000.

Other institutional investors and hedge funds have also modified their holdings of the company. GKV Capital Management Co. Inc. acquired a new stake in Align Technology during the 4th quarter valued at $31,000. Compagnie Lombard Odier SCmA purchased a new position in Align Technology during the first quarter worth $32,000. Aster Capital Management DIFC Ltd purchased a new position in Align Technology during the fourth quarter worth $35,000. Center for Financial Planning Inc. purchased a new position in Align Technology during the first quarter worth $35,000. Finally, Orion Capital Management LLC purchased a new position in Align Technology during the fourth quarter worth $42,000. Institutional investors and hedge funds own 88.43% of the company's stock.

Align Technology Trading Up 5.8%

Shares of Align Technology stock opened at $136.52 on Friday. Align Technology, Inc. has a twelve month low of $127.70 and a twelve month high of $262.87. The stock has a market capitalization of $9.90 billion, a P/E ratio of 23.02, a PEG ratio of 1.44 and a beta of 1.61. The business's fifty day moving average price is $187.04 and its 200 day moving average price is $185.39.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 earnings per share for the quarter, missing analysts' consensus estimates of $2.57 by ($0.08). Align Technology had a net margin of 11.04% and a return on equity of 13.36%. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter in the previous year, the business posted $2.41 EPS. Align Technology's revenue was down 1.6% compared to the same quarter last year. As a group, sell-side analysts predict that Align Technology, Inc. will post 7.98 EPS for the current year.

Align Technology declared that its board has approved a stock repurchase plan on Tuesday, May 6th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the medical equipment provider to repurchase up to 7.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other news, CEO Joseph M. Hogan bought 7,576 shares of Align Technology stock in a transaction that occurred on Friday, August 1st. The shares were purchased at an average price of $131.49 per share, for a total transaction of $996,168.24. Following the completion of the acquisition, the chief executive officer owned 184,945 shares of the company's stock, valued at $24,318,418.05. The trade was a 4.27% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.66% of the company's stock.

Wall Street Analysts Forecast Growth

ALGN has been the subject of several recent research reports. Wells Fargo & Company dropped their price target on Align Technology from $246.00 to $199.00 and set an "overweight" rating for the company in a research report on Thursday. Hsbc Global Res downgraded Align Technology from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 25th. Morgan Stanley reissued an "equal weight" rating and set a $154.00 price target (down previously from $249.00) on shares of Align Technology in a research report on Thursday. Mizuho set a $210.00 price target on Align Technology in a research report on Thursday. Finally, Needham & Company LLC restated a "hold" rating on shares of Align Technology in a report on Thursday, May 1st. One research analyst has rated the stock with a sell rating, five have issued a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Align Technology presently has an average rating of "Moderate Buy" and an average 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.

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