Federated Hermes Inc. Has $112.40 Million Stake in Align Technology, Inc. (NASDAQ:ALGN)

Key Points

• Federated Hermes Inc. significantly increased its holdings in Align Technology, Inc. by 510.3% during the first quarter, now owning approximately 707,514 shares valued at $112.40 million.
• Align Technology announced a $1.00 billion stock repurchase program, allowing the company to reacquire up to 7.9% of its shares, indicating confidence from its board that the stock may be undervalued.
• Analysts have issued mixed ratings on Align Technology, with a consensus price target of $242.92, while some reports have lowered price targets to as low as $170.00 following recent assessments.

Federated Hermes Inc. increased its position in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 510.3% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 707,514 shares of the medical equipment provider's stock after buying an additional 591,588 shares during the quarter. Federated Hermes Inc. owned about 0.97% of Align Technology worth $112,396,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Norges Bank purchased a new stake in Align Technology during the fourth quarter worth about $190,792,000. Ninety One UK Ltd boosted 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 worth $307,800,000 after buying an additional 716,954 shares during the last quarter. Mackenzie Financial Corp boosted its position in shares of Align Technology by 4,217.3% in the first quarter. Mackenzie Financial Corp now owns 426,205 shares of the medical equipment provider's stock worth $67,707,000 after acquiring an additional 416,333 shares during the last quarter. Senvest Management LLC grew its stake in shares of Align Technology by 58.1% during the 4th quarter. Senvest Management LLC now owns 726,243 shares of the medical equipment provider's stock valued at $151,429,000 after buying an additional 267,000 shares during the period. Finally, Resona Asset Management Co. Ltd. acquired a new stake in Align Technology during the fourth quarter worth about $47,853,000. 88.43% of the stock is owned by hedge funds and other institutional investors.

Align Technology Stock Performance

ALGN traded down $2.24 during trading hours on Wednesday, reaching $203.57. The company's stock had a trading volume of 2,414,073 shares, compared to its average volume of 1,038,256. The company's 50-day moving average is $187.97 and its 200-day moving average is $186.58. Align Technology, Inc. has a 52 week low of $141.74 and a 52 week high of $262.87. The firm has a market cap of $14.76 billion, a PE ratio of 37.08, a price-to-earnings-growth ratio of 2.19 and a beta of 1.63.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its quarterly earnings data on Wednesday, April 30th. The medical equipment provider reported $2.13 earnings per share for the quarter, topping the consensus estimate of $2.00 by $0.13. The company had revenue of $979.26 million for the quarter, compared to analysts' expectations of $977.90 million. Align Technology had a net margin of 10.29% and a return on equity of 13.52%. Align Technology's revenue for the quarter was down 1.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.14 earnings per share. Equities analysts anticipate that Align Technology, Inc. will post 7.98 earnings per share for the current fiscal year.

Align Technology announced that its board has authorized a share repurchase plan on Tuesday, May 6th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the medical equipment provider to reacquire up to 7.9% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

ALGN has been the topic of several recent research reports. Needham & Company LLC reissued a "hold" rating on shares of Align Technology in a research report on Thursday, May 1st. UBS Group lowered their price target on Align Technology from $240.00 to $215.00 and set a "neutral" rating for the company in a report on Thursday, April 24th. Mizuho lowered their target price on Align Technology from $250.00 to $245.00 and set an "outperform" rating for the company in a report on Tuesday, April 29th. HSBC lowered shares of Align Technology from a "buy" rating to a "hold" rating and reduced their target price for the company from $290.00 to $170.00 in a research note on Friday, April 25th. Finally, Evercore ISI raised their price target on Align Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Align Technology currently has an average rating of "Moderate Buy" and a consensus price target of $242.92.

Align Technology Company 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.