Align Technology, Inc. $ALGN Shares Sold by Nomura Holdings Inc.

Key Points

• Nomura Holdings Inc. reduced its stake in Align Technology by 86.7% in Q1, owning only 2,221 shares after selling 14,485 shares during the quarter.
• Align Technology reported Q2 earnings with EPS of $2.49, missing expectations, and a revenue of $1.01 billion, down 1.6% year-over-year.
• The company announced a $200 million stock repurchase plan, indicating confidence that its shares are currently undervalued.

Nomura Holdings Inc. reduced its stake in Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 86.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,221 shares of the medical equipment provider's stock after selling 14,485 shares during the quarter. Nomura Holdings Inc.'s holdings in Align Technology were worth $353,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in ALGN. American Assets Inc. purchased a new position in Align Technology during the fourth quarter worth about $417,000. Mercer Global Advisors Inc. ADV purchased a new position in Align Technology during the fourth quarter worth about $400,000. Algert Global LLC lifted its position in Align Technology by 259.1% during the fourth quarter. Algert Global LLC now owns 7,262 shares of the medical equipment provider's stock worth $1,514,000 after buying an additional 5,240 shares during the period. Bank of America Corp DE lifted its position in Align Technology by 77.3% during the fourth quarter. Bank of America Corp DE now owns 460,028 shares of the medical equipment provider's stock worth $95,920,000 after buying an additional 200,492 shares during the period. Finally, Deutsche Bank AG lifted its position in Align Technology by 14.4% during the fourth quarter. Deutsche Bank AG now owns 369,625 shares of the medical equipment provider's stock worth $77,071,000 after buying an additional 46,531 shares during the period. 88.43% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, CEO Joseph M. Hogan bought 7,576 shares of the stock in a transaction dated Friday, August 1st. The stock was acquired at an average price of $131.49 per share, for a total transaction of $996,168.24. Following the completion of the purchase, the chief executive officer owned 184,945 shares in the company, valued at $24,318,418.05. This represents a 4.27% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.66% of the company's stock.

Align Technology Stock Performance

Shares of ALGN stock traded down $2.26 during trading hours on Monday, reaching $136.86. The company had a trading volume of 1,408,549 shares, compared to its average volume of 1,316,050. Align Technology, Inc. has a twelve month low of $127.70 and a twelve month high of $262.87. The company has a market capitalization of $9.92 billion, a P/E ratio of 23.08, a price-to-earnings-growth ratio of 1.57 and a beta of 1.65. The stock's fifty day simple moving average is $165.60 and its 200 day simple moving average is $171.45.

Align Technology (NASDAQ:ALGN - Get Free Report) last posted its earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 earnings per share (EPS) 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 company had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter last year, the business posted $2.41 EPS. Align Technology's quarterly revenue was down 1.6% compared to the same quarter last year. Align Technology has set its Q3 2025 guidance at EPS. As a group, equities analysts expect that Align Technology, Inc. will post 7.98 earnings per share for the current year.

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

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on ALGN shares. Piper Sandler reduced their target price on Align Technology from $250.00 to $190.00 and set an "overweight" rating on the stock in a research report on Thursday, July 31st. Mizuho set a $210.00 target price on Align Technology in a research report on Thursday, July 31st. Stifel Nicolaus reduced their target price on Align Technology from $275.00 to $200.00 and set a "buy" rating on the stock in a research report on Thursday, July 31st. Wells Fargo & Company reduced their target price on Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a research report on Thursday, July 31st. Finally, Morgan Stanley restated an "equal weight" rating and issued a $154.00 price objective (down from $249.00) on shares of Align Technology in a report on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Align Technology presently has an average rating of "Moderate Buy" and a consensus target price 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.