Pacer Advisors Inc. Reduces Stock Position in Align Technology, Inc. (NASDAQ:ALGN)

Key Points

• Pacer Advisors Inc. has reduced its holdings in Align Technology, Inc. by 35.7%, resulting in ownership of 3,619 shares valued at $575,000.
• Recent analyst reports have lowered price targets for Align Technology, with HSBC reducing its target from $290 to $170, while UBS set a target of $215.
• Align Technology announced a $1 billion stock buyback program, indicating management's belief that the stock is undervalued despite a 1.6% decrease in year-over-year revenue.

Pacer Advisors Inc. lowered its stake in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 35.7% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,619 shares of the medical equipment provider's stock after selling 2,005 shares during the quarter. Pacer Advisors Inc.'s holdings in Align Technology were worth $575,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. GKV Capital Management Co. Inc. acquired a new stake in Align Technology during the fourth quarter worth approximately $31,000. Compagnie Lombard Odier SCmA acquired a new stake in Align Technology during the first quarter worth approximately $32,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Align Technology in the 4th quarter valued at $35,000. Center for Financial Planning Inc. acquired a new stake in shares of Align Technology in the 1st quarter valued at $35,000. Finally, Orion Capital Management LLC acquired a new stake in shares of Align Technology in the 4th quarter valued at $42,000. Institutional investors and hedge funds own 88.43% of the company's stock.

Insider Buying and Selling

In other news, CEO Joseph M. Hogan acquired 7,576 shares of the company's stock in a transaction that occurred on Friday, August 1st. The shares were 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 approximately $24,318,418.05. This trade represents a 4.27% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 0.66% of the company's stock.

Align Technology Price Performance

Shares of NASDAQ ALGN traded up $3.27 during midday trading on Tuesday, reaching $141.04. The company's stock had a trading volume of 848,709 shares, compared to its average volume of 1,185,063. Align Technology, Inc. has a 12-month low of $127.70 and a 12-month high of $262.87. The firm has a 50 day moving average price of $186.38 and a 200-day moving average price of $184.55. The stock has a market capitalization of $10.22 billion, a P/E ratio of 23.65, a PEG ratio of 1.49 and a beta of 1.61.

Align Technology (NASDAQ:ALGN - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The medical equipment provider reported $2.49 EPS for the quarter, missing the consensus estimate 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 analysts' expectations of $1.06 billion. During the same quarter in the previous year, the company posted $2.41 EPS. Align Technology's revenue for the quarter was down 1.6% on a year-over-year basis. On average, equities 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 permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the medical equipment provider to buy up to 7.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its shares are undervalued.

Analyst Upgrades and Downgrades

ALGN has been the topic of a number of research analyst reports. 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 report on Thursday, July 31st. Wells Fargo & Company lowered their target price on Align Technology from $246.00 to $199.00 and set an "overweight" rating for the company in a research report on Thursday, July 31st. Morgan Stanley reissued an "equal weight" rating and issued a $154.00 price objective (down from $249.00) on shares of Align Technology in a research report on Thursday, July 31st. Needham & Company LLC reissued a "hold" rating on shares of Align Technology in a research note on Thursday, May 1st. Finally, UBS Group dropped their price target on Align Technology from $240.00 to $215.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus 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.