Hsbc Holdings PLC Buys 3,817 Shares of Align Technology, Inc. $ALGN

Key Points

• Hsbc Holdings PLC has increased its stake in Align Technology, Inc. by 2.6%, owning a total of 148,858 shares valued at approximately $23.6 million.
• Align Technology reported a quarterly earnings miss with earnings per share of $2.49, falling short of analysts' expectations of $2.57.
• The company's Board of Directors has authorized a share repurchase program, allowing up to $1 billion to be used for buying back shares, indicating confidence in the stock's value.

Hsbc Holdings PLC increased its holdings in Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 2.6% in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 148,858 shares of the medical equipment provider's stock after purchasing an additional 3,817 shares during the period. Hsbc Holdings PLC owned approximately 0.20% of Align Technology worth $23,614,000 as of its most recent SEC filing.

A number of other institutional investors also recently made changes to their positions in the business. Redmond Asset Management LLC boosted its stake in shares of Align Technology by 2.0% in the 1st quarter. Redmond Asset Management LLC now owns 2,769 shares of the medical equipment provider's stock valued at $440,000 after purchasing an additional 54 shares in the last quarter. Horizon Investments LLC boosted its position in Align Technology by 6.2% during the 1st quarter. Horizon Investments LLC now owns 1,018 shares of the medical equipment provider's stock valued at $162,000 after buying an additional 59 shares during the period. Washington Trust Advisors Inc. grew its holdings in Align Technology by 5.2% in the 1st quarter. Washington Trust Advisors Inc. now owns 1,205 shares of the medical equipment provider's stock worth $191,000 after acquiring an additional 60 shares during the last quarter. Fulcrum Capital LLC grew its holdings in Align Technology by 0.8% in the 1st quarter. Fulcrum Capital LLC now owns 9,282 shares of the medical equipment provider's stock worth $1,475,000 after acquiring an additional 70 shares during the last quarter. Finally, Covestor Ltd grew its holdings in Align Technology by 18.8% in the 1st quarter. Covestor Ltd now owns 493 shares of the medical equipment provider's stock worth $78,000 after acquiring an additional 78 shares during the last quarter. Hedge funds and other institutional investors own 88.43% of the company's stock.

Insiders Place Their Bets

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

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Piper Sandler cut their price target on shares of Align Technology from $250.00 to $190.00 and set an "overweight" rating on the stock in a report on Thursday, July 31st. Mizuho set a $210.00 price target on shares of Align Technology in a report on Thursday, July 31st. Needham & Company LLC reissued a "hold" rating on shares of Align Technology in a report on Thursday, May 1st. Stifel Nicolaus cut their price target on shares of Align Technology from $275.00 to $200.00 and set a "buy" rating on the stock in a report on Thursday, July 31st. Finally, Morgan Stanley reissued an "equal weight" rating and issued a $154.00 price target (down previously 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 issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $215.00.

Align Technology Price Performance

NASDAQ ALGN traded down $0.56 during trading hours on Thursday, reaching $141.43. 637,178 shares of the company's stock traded hands, compared to its average volume of 1,222,382. Align Technology, Inc. has a 52-week low of $127.70 and a 52-week high of $262.87. The firm has a market cap of $10.25 billion, a PE ratio of 23.81, a PEG ratio of 1.60 and a beta of 1.61. The firm has a 50-day simple moving average of $173.18 and a 200 day simple moving average of $175.52.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its quarterly 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). The business had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $1.06 billion. Align Technology had a net margin of 11.04% and a return on equity of 13.36%. The company's revenue was down 1.6% on a year-over-year basis. During the same period last year, the business earned $2.41 earnings per share. Align Technology has set its Q3 2025 guidance at EPS. Sell-side analysts forecast that Align Technology, Inc. will post 7.98 EPS for the current fiscal year.

Align Technology announced that its Board of Directors has approved a share repurchase program on Tuesday, May 6th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the medical equipment provider to repurchase up to 7.9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

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.