Jacobs Levy Equity Management Inc. Buys 4,789 Shares of Align Technology, Inc. $ALGN

Key Points

• Jacobs Levy Equity Management Inc. increased its stake in Align Technology, owning approximately 1.02% of the company worth $117 million.
• Align Technology reported earnings of $2.49 per share, missing analysts' expectations, and recorded a 1.6% decline in revenue compared to the same quarter last year.
• The company also announced a $200 million stock repurchase program, indicating management believes its shares are undervalued.

Jacobs Levy Equity Management Inc. boosted its holdings in Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 0.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 736,635 shares of the medical equipment provider's stock after purchasing an additional 4,789 shares during the period. Jacobs Levy Equity Management Inc. owned approximately 1.02% of Align Technology worth $117,022,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in Align Technology by 2.2% in the first quarter. Vanguard Group Inc. now owns 8,441,592 shares of the medical equipment provider's stock worth $1,341,031,000 after purchasing an additional 185,187 shares during the last quarter. Ninety One UK Ltd raised its stake in shares of Align Technology by 58.7% during the first quarter. Ninety One UK Ltd now owns 1,937,555 shares of the medical equipment provider's stock valued at $307,800,000 after acquiring an additional 716,954 shares during the last quarter. Invesco Ltd. raised its stake in shares of Align Technology by 12.7% during the first quarter. Invesco Ltd. now owns 1,219,715 shares of the medical equipment provider's stock valued at $193,764,000 after acquiring an additional 137,553 shares during the last quarter. Federated Hermes Inc. raised its stake in shares of Align Technology by 510.3% during the first quarter. Federated Hermes Inc. now owns 707,514 shares of the medical equipment provider's stock valued at $112,396,000 after acquiring an additional 591,588 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Align Technology by 11.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 629,697 shares of the medical equipment provider's stock valued at $131,298,000 after acquiring an additional 65,033 shares during the last quarter. 88.43% of the stock is owned by institutional investors.

Insider Activity at Align Technology

In other news, CEO Joseph M. Hogan purchased 7,576 shares of the business's stock in a transaction dated Friday, August 1st. The shares were purchased at an average price of $131.49 per share, for a total transaction of $996,168.24. Following the completion of the acquisition, the chief executive officer directly owned 184,945 shares in the company, valued at $24,318,418.05. This represents a 4.27% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.66% of the stock is currently owned by insiders.

Align Technology Trading Down 1.6%

ALGN traded down $2.26 during midday trading on Monday, reaching $136.86. The company's stock had a trading volume of 1,408,549 shares, compared to its average volume of 1,316,050. The firm has a market capitalization of $9.92 billion, a price-to-earnings ratio of 23.08, a PEG ratio of 1.57 and a beta of 1.65. Align Technology, Inc. has a 1 year low of $127.70 and a 1 year high of $262.87. The stock's 50-day moving average is $166.65 and its 200-day moving average is $171.82.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $1.06 billion. During the same quarter last year, the company posted $2.41 EPS. Align Technology's revenue for the quarter was down 1.6% compared to the same quarter last year. Align Technology has set its Q3 2025 guidance at EPS. As a group, equities research analysts forecast that Align Technology, Inc. will post 7.98 earnings per share for the current fiscal year.

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

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ALGN. Mizuho set a $210.00 price objective on shares of Align Technology in a research note on Thursday, July 31st. Piper Sandler reduced their price target on shares of Align Technology from $250.00 to $190.00 and set an "overweight" rating on the stock in a research report on Thursday, July 31st. Stifel Nicolaus reduced their price target on shares of Align Technology from $275.00 to $200.00 and set a "buy" rating on the stock in a research report on Thursday, July 31st. Zacks Research cut shares of Align Technology from a "hold" rating to a "strong sell" rating in a research report on Monday, September 1st. Finally, Wells Fargo & Company reduced their price target on shares of Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a research report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target 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.