Hawk Ridge Capital Management LP Acquires 120,300 Shares of Align Technology, Inc. $ALGN

Key Points

• Hawk Ridge Capital Management LP increased its stake in Align Technology by 49.5%, acquiring an additional 120,300 shares, now holding 363,312 shares overall.
• Align Technology reported lower-than-expected earnings, with a Q2 EPS of $2.49, missing the consensus estimate of $2.57, and showed a revenue decline of 1.6% year-over-year.
• The company's board has approved a $200 million stock buyback program, indicating confidence in its stock value amid recent price fluctuations.

Hawk Ridge Capital Management LP raised its stake in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 49.5% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 363,312 shares of the medical equipment provider's stock after purchasing an additional 120,300 shares during the period. Align Technology makes up approximately 2.7% of Hawk Ridge Capital Management LP's portfolio, making the stock its 19th biggest holding. Hawk Ridge Capital Management LP owned about 0.50% of Align Technology worth $57,716,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Orion Capital Management LLC acquired a new position in Align Technology during the 4th quarter valued at about $42,000. Compagnie Lombard Odier SCmA acquired a new position in Align Technology during the 1st quarter valued at about $32,000. Center for Financial Planning Inc. acquired a new position in Align Technology during the 1st quarter valued at about $35,000. SVB Wealth LLC purchased a new position in shares of Align Technology in the 1st quarter worth approximately $36,000. Finally, Mather Group LLC. boosted its stake in shares of Align Technology by 375.0% in the 1st quarter. Mather Group LLC. now owns 437 shares of the medical equipment provider's stock worth $69,000 after buying an additional 345 shares during the last quarter. Institutional investors and hedge funds own 88.43% of the company's stock.

Align Technology Trading Down 1.6%

Shares of NASDAQ:ALGN traded down $2.26 during mid-day trading on Monday, reaching $136.86. The company had a trading volume of 1,408,549 shares, compared to its average volume of 1,226,029. The firm has a market cap of $9.92 billion, a price-to-earnings ratio of 23.08, a PEG ratio of 1.57 and a beta of 1.65. The company's 50-day moving average price is $166.65 and its 200-day moving average price is $171.82. Align Technology, Inc. has a one year low of $127.70 and a one year high of $262.87.

Align Technology (NASDAQ:ALGN - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 EPS for the quarter, missing analysts' consensus estimates of $2.57 by ($0.08). Align Technology had a return on equity of 13.36% and a net margin of 11.04%.The company had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $1.06 billion. During the same period last year, the firm posted $2.41 EPS. The company's revenue for the quarter was down 1.6% compared to the same quarter last year. Align Technology has set its Q3 2025 guidance at EPS. On average, research analysts anticipate that Align Technology, Inc. will post 7.98 EPS for the current fiscal year.

Align Technology announced that its Board of Directors has initiated a share repurchase plan on Tuesday, August 5th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the medical equipment provider to reacquire up to 2% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Transactions at Align Technology

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

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on ALGN shares. Morgan Stanley restated an "equal weight" rating and issued a $154.00 target price (down previously from $249.00) on shares of Align Technology in a research note on Thursday, July 31st. Stifel Nicolaus cut their target price on Align Technology from $275.00 to $200.00 and set a "buy" rating on the stock in a research note 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. Wells Fargo & Company cut their target price on Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st. Finally, Piper Sandler cut their target price on Align Technology from $250.00 to $190.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Align Technology has a consensus rating of "Moderate Buy" and an average price target of $215.00.

Align Technology 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.