Lecap Asset Management Ltd. Sells 12,437 Shares of Align Technology, Inc. $ALGN

Key Points

• Lecap Asset Management Ltd. has reduced its stake in Align Technology by 81.5%, now holding only 2,825 shares after selling 12,437 shares in the second quarter.
• Align Technology's Q2 earnings missed expectations with an EPS of $2.49, below the consensus of $2.57, and revenue declining to $1.01 billion.
• The company's Board has authorized a $200 million share buyback program, indicating a belief that their shares are currently undervalued.

Lecap Asset Management Ltd. lessened its position in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 81.5% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,825 shares of the medical equipment provider's stock after selling 12,437 shares during the period. Lecap Asset Management Ltd.'s holdings in Align Technology were worth $535,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Align Technology by 2.2% during 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 buying an additional 185,187 shares during the period. 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 acquiring an additional 716,954 shares in the last quarter. Invesco Ltd. boosted its position in Align Technology by 12.7% during the 1st quarter. Invesco Ltd. now owns 1,219,715 shares of the medical equipment provider's stock worth $193,764,000 after acquiring an additional 137,553 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Align Technology by 32.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 832,313 shares of the medical equipment provider's stock worth $132,221,000 after acquiring an additional 202,616 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its holdings in shares of Align Technology by 0.7% in the first quarter. Jacobs Levy Equity Management Inc. now owns 736,635 shares of the medical equipment provider's stock valued at $117,022,000 after purchasing an additional 4,789 shares during the last quarter. 88.43% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Zacks Research upgraded shares of Align Technology from a "strong sell" rating to a "hold" rating in a report on Tuesday. Mizuho set a $210.00 price objective on shares of Align Technology in a research note on Thursday, July 31st. Evercore ISI raised their price objective on Align Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Morgan Stanley reiterated an "equal weight" rating and set a $154.00 target price (down previously from $249.00) on shares of Align Technology in a report on Thursday, July 31st. Finally, Wells Fargo & Company decreased their price target 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. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $215.00.

Align Technology Trading Up 0.9%

ALGN stock opened at $128.70 on Friday. Align Technology, Inc. has a 1-year low of $122.00 and a 1-year high of $246.19. The business's 50 day simple moving average is $141.67 and its 200 day simple moving average is $165.94. The firm has a market capitalization of $9.33 billion, a PE ratio of 21.70, a PEG ratio of 1.44 and a beta of 1.70.

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). Align Technology had a return on equity of 13.36% and a net margin of 11.04%.The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1.06 billion. During the same period last year, the firm earned $2.41 earnings per share. The company'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, sell-side analysts predict that Align Technology, Inc. will post 7.98 EPS for the current fiscal year.

Align Technology declared that its Board of Directors has authorized a share buyback program 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 buy up to 2% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insider Activity at Align Technology

In related news, CEO Joseph M. Hogan purchased 7,576 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were acquired at an average price of $131.49 per share, for a total transaction of $996,168.24. Following the purchase, the chief executive officer owned 184,945 shares in the company, valued at approximately $24,318,418.05. This represents a 4.27% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, 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.

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