Invenomic Capital Management LP Buys Shares of 22,506 Align Technology, Inc. $ALGN

Key Points

• Invenomic Capital Management LP invested approximately $3.58 million in Align Technology, acquiring 22,506 shares in the first quarter, highlighting growing institutional interest in the company.
• Various research analysts have recently lowered their target prices for Align Technology, with Morgan Stanley setting a new target of $154.00, down from $249.00, reflecting cautious sentiment in the market.
• Align Technology reported earnings of $2.49 per share for the last quarter, missing estimates and revealing a slight decline in revenue compared to the previous year.

Invenomic Capital Management LP purchased a new stake in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 22,506 shares of the medical equipment provider's stock, valued at approximately $3,575,000.

Several other institutional investors and hedge funds have also made changes to their positions in the company. American Assets Inc. acquired a new stake in Align Technology in the fourth quarter worth $417,000. Mercer Global Advisors Inc. ADV acquired a new position in shares of Align Technology during the fourth quarter valued at $400,000. Algert Global LLC boosted its stake in Align Technology by 259.1% during the fourth quarter. Algert Global LLC now owns 7,262 shares of the medical equipment provider's stock valued at $1,514,000 after buying an additional 5,240 shares in the last quarter. Bank of America Corp DE boosted its stake in Align Technology by 77.3% during the fourth 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, Deutsche Bank AG boosted its stake in Align Technology by 14.4% during the fourth quarter. Deutsche Bank AG now owns 369,625 shares of the medical equipment provider's stock valued at $77,071,000 after buying an additional 46,531 shares in the last quarter. 88.43% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on ALGN shares. Mizuho set a $210.00 target price on Align Technology in a research note on Thursday, July 31st. Wells Fargo & Company decreased their target price on Align Technology from $246.00 to $199.00 and set an "overweight" rating for the company in a research note on Thursday, July 31st. Morgan Stanley reaffirmed an "equal weight" rating and set a $154.00 target price (down previously from $249.00) on shares of Align Technology in a research note on Thursday, July 31st. Stifel Nicolaus decreased their target price on Align Technology from $275.00 to $200.00 and set a "buy" rating for the company 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 report on Monday, September 1st. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Align Technology presently has an average rating of "Moderate Buy" and a consensus price target of $215.00.

Align Technology Stock Down 1.6%

Shares of ALGN traded down $2.26 during midday trading on Monday, reaching $136.86. 1,408,549 shares of the stock were exchanged, compared to its average volume of 1,316,050. 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 simple moving average of $165.60 and a 200-day simple moving average of $171.45. The company has a market cap of $9.92 billion, a price-to-earnings ratio of 23.08, a P/E/G ratio of 1.57 and a beta of 1.65.

Align Technology (NASDAQ:ALGN - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 earnings per share 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 firm had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $1.06 billion. During the same period last year, the business earned $2.41 earnings per share. The firm's revenue for the quarter was down 1.6% on a year-over-year basis. Align Technology has set its Q3 2025 guidance at EPS. Research analysts expect that Align Technology, Inc. will post 7.98 earnings per share for the current fiscal year.

Align Technology announced that its board has initiated a share buyback plan on Tuesday, August 5th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the medical equipment provider to reacquire up to 2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Align Technology

In other news, CEO Joseph M. Hogan purchased 7,576 shares of the company's stock in a transaction dated Friday, August 1st. The shares were bought at an average price of $131.49 per share, with a total value of $996,168.24. Following the completion of the transaction, the chief executive officer directly owned 184,945 shares in the company, valued at $24,318,418.05. This trade represents a 4.27% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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.