Canada Pension Plan Investment Board Grows Stake in Align Technology, Inc. $ALGN

Key Points

• The Canada Pension Plan Investment Board increased its holdings in Align Technology, Inc. by 215.2%, acquiring an additional 63,276 shares to reach a total of 92,680 shares valued at approximately $14.7 million.
• Several hedge funds have also increased their stakes in Align Technology, pushing institutional ownership to 88.43% of the company's shares.
• Analysts have revised their price targets for Align Technology, with estimates ranging from $190 to $220, indicating a mixed outlook with ratings from Strong Buy to Sell.

Canada Pension Plan Investment Board increased its position in Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 215.2% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 92,680 shares of the medical equipment provider's stock after acquiring an additional 63,276 shares during the period. Canada Pension Plan Investment Board owned approximately 0.13% of Align Technology worth $14,723,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Ninety One UK Ltd lifted its stake in Align Technology by 58.7% in the 1st quarter. Ninety One UK Ltd now owns 1,937,555 shares of the medical equipment provider's stock valued at $307,800,000 after buying an additional 716,954 shares in the last quarter. Federated Hermes Inc. lifted its stake in Align Technology by 510.3% in the 1st quarter. Federated Hermes Inc. now owns 707,514 shares of the medical equipment provider's stock valued at $112,396,000 after buying an additional 591,588 shares in the last quarter. Mackenzie Financial Corp lifted its stake in Align Technology by 4,217.3% in the 1st quarter. Mackenzie Financial Corp now owns 426,205 shares of the medical equipment provider's stock valued at $67,707,000 after buying an additional 416,333 shares in the last quarter. Bank of America Corp DE lifted its stake in Align Technology by 77.3% in the 4th quarter. Bank of America Corp DE now owns 460,028 shares of the medical equipment provider's stock valued at $95,920,000 after buying an additional 200,492 shares in the last quarter. Finally, Citigroup Inc. lifted its stake in Align Technology by 333.4% in the 1st quarter. Citigroup Inc. now owns 256,492 shares of the medical equipment provider's stock valued at $40,746,000 after buying an additional 197,317 shares in the last quarter. Institutional investors and hedge funds own 88.43% of the company's stock.

Align Technology Stock Up 3.3%

Shares of ALGN stock traded up $4.42 on Friday, reaching $139.12. 1,058,096 shares of the stock were exchanged, compared to its average volume of 1,349,524. The stock has a market cap of $10.08 billion, a P/E ratio of 23.46, a price-to-earnings-growth ratio of 1.52 and a beta of 1.65. The firm has a 50 day moving average of $166.65 and a two-hundred day moving average of $172.21. Align Technology, Inc. has a 1-year low of $127.70 and a 1-year high of $262.87.

Align Technology (NASDAQ:ALGN - Get Free Report) last released its quarterly earnings data 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). The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.06 billion. Align Technology had a return on equity of 13.36% and a net margin of 11.04%.The company's quarterly revenue was down 1.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.41 earnings per share. Align Technology has set its Q3 2025 guidance at EPS. On average, equities research analysts predict that Align Technology, Inc. will post 7.98 EPS for the current fiscal year.

Align Technology declared that its board has approved a stock repurchase plan on Tuesday, August 5th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the medical equipment provider to repurchase up to 2% 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.

Insider Activity at Align Technology

In other news, CEO Joseph M. Hogan acquired 7,576 shares of the company's stock in a transaction dated Friday, August 1st. The stock was acquired at an average cost of $131.49 per share, for a total transaction of $996,168.24. Following the acquisition, the chief executive officer directly owned 184,945 shares in the company, valued at approximately $24,318,418.05. This represents a 4.27% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 0.66% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the company. Evercore ISI upped their target price on Align Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a research note on Wednesday, July 9th. Morgan Stanley reaffirmed 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. 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 note on Thursday, July 31st. 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 note on Thursday, July 31st. Finally, Zacks Research lowered Align Technology from a "hold" rating to a "strong sell" rating in a research note on Monday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average 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.