Jackson Square Partners LLC Has $21.53 Million Holdings in Align Technology, Inc. (NASDAQ:ALGN)

Key Points

• Jackson Square Partners LLC increased its stake in Align Technology, Inc. (NASDAQ:ALGN) by 14.2%, owning 135,503 shares after purchasing an additional 16,859 shares.
• The company reported a Q2 earnings miss, with EPS at $2.49 compared to the consensus of $2.57, and revenue of $1.01 billion, falling short of expectations of $1.06 billion.
• Align Technology has initiated a $1.00 billion stock repurchase program, indicating that the company's leadership believes its stock is undervalued.

Jackson Square Partners LLC grew its position in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 14.2% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 135,503 shares of the medical equipment provider's stock after buying an additional 16,859 shares during the quarter. Align Technology makes up about 2.9% of Jackson Square Partners LLC's investment portfolio, making the stock its 8th biggest position. Jackson Square Partners LLC owned 0.19% of Align Technology worth $21,526,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in ALGN. American Assets Inc. purchased a new stake in shares of Align Technology during the 4th quarter valued at about $417,000. Prudential PLC increased its position in shares of Align Technology by 158.7% during the 4th quarter. Prudential PLC now owns 2,235 shares of the medical equipment provider's stock worth $466,000 after purchasing an additional 1,371 shares during the last quarter. Wells Fargo & Company MN raised its position in shares of Align Technology by 9.3% during the 4th quarter. Wells Fargo & Company MN now owns 175,894 shares of the medical equipment provider's stock worth $36,676,000 after acquiring an additional 15,010 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in shares of Align Technology by 25.2% in the fourth quarter. Russell Investments Group Ltd. now owns 122,582 shares of the medical equipment provider's stock valued at $25,552,000 after purchasing an additional 24,680 shares during the period. Finally, Aster Capital Management DIFC Ltd acquired a new stake in Align Technology in the fourth quarter valued at $35,000. 88.43% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

ALGN has been the subject of a number of analyst reports. Morgan Stanley reaffirmed an "equal weight" rating and issued a $154.00 price target (down previously from $249.00) on shares of Align Technology in a research report on Thursday, July 31st. HSBC lowered shares of Align Technology from a "buy" rating to a "hold" rating and dropped their price objective for the company from $290.00 to $170.00 in a report on Friday, April 25th. Mizuho set a $210.00 target price on shares of Align Technology in a research note on Thursday, July 31st. Stifel Nicolaus decreased their price objective on shares of Align Technology from $275.00 to $200.00 and set a "buy" rating for the company in a report on Thursday, July 31st. Finally, UBS Group cut their target price on shares of Align Technology from $240.00 to $215.00 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. One 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 stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $215.00.

Align Technology Stock Down 3.9%

ALGN traded down $5.44 during trading on Monday, reaching $134.45. 1,053,907 shares of the company's stock were exchanged, compared to its average volume of 1,203,126. The business has a 50 day moving average price of $183.04 and a 200 day moving average price of $182.01. The company has a market capitalization of $9.75 billion, a P/E ratio of 22.84, a PEG ratio of 1.58 and a beta of 1.61. Align Technology, Inc. has a fifty-two week low of $127.70 and a fifty-two week 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 business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.06 billion. During the same period last year, the firm posted $2.41 EPS. Align Technology's quarterly revenue was down 1.6% on a year-over-year basis. As a group, research analysts forecast that Align Technology, Inc. will post 7.98 EPS for the current year.

Align Technology declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, May 6th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the medical equipment provider to buy up to 7.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Align Technology

In related news, CEO Joseph M. Hogan purchased 7,576 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was purchased at an average price of $131.49 per share, with a total value of $996,168.24. Following the completion of the purchase, the chief executive officer owned 184,945 shares of the company's stock, valued at approximately $24,318,418.05. The trade was a 4.27% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 0.66% of the company's stock.

About Align Technology

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.