Machina Capital S.A.S. Makes New Investment in Align Technology, Inc. (NASDAQ:ALGN)

Key Points

• Machina Capital S.A.S. acquired a new stake in Align Technology by purchasing 2,627 shares valued at approximately $417,000 during the first quarter.
• Align Technology announced a $1 billion stock buyback program to repurchase up to 7.9% of its outstanding shares, indicating management's belief in the stock's undervaluation.
• The company reported an earnings per share (EPS) of $2.13 for the latest quarter, beating analyst expectations by $0.13, but experiencing a 1.8% decline in year-over-year revenue.

Machina Capital S.A.S. bought a new position in Align Technology, Inc. (NASDAQ:ALGN - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 2,627 shares of the medical equipment provider's stock, valued at approximately $417,000.

Several other hedge funds and other institutional investors have also modified their holdings of ALGN. American Assets Inc. bought a new stake in Align Technology in the fourth quarter valued at $417,000. LPL Financial LLC grew its position in Align Technology by 6.7% in the fourth quarter. LPL Financial LLC now owns 38,784 shares of the medical equipment provider's stock valued at $8,087,000 after acquiring an additional 2,437 shares during the period. Mitsubishi UFJ Trust & Banking Corp grew its position in Align Technology by 12.7% in the fourth quarter. Mitsubishi UFJ Trust & Banking Corp now owns 35,966 shares of the medical equipment provider's stock valued at $7,499,000 after acquiring an additional 4,065 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in Align Technology by 14.0% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 113,901 shares of the medical equipment provider's stock valued at $23,721,000 after acquiring an additional 14,030 shares during the period. Finally, UniSuper Management Pty Ltd increased its holdings in Align Technology by 23.5% during the 4th quarter. UniSuper Management Pty Ltd now owns 9,543 shares of the medical equipment provider's stock valued at $1,990,000 after purchasing an additional 1,817 shares in the last quarter. Institutional investors own 88.43% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ALGN. Hsbc Global Res cut Align Technology from a "strong-buy" rating to a "hold" rating in a report on Friday, April 25th. Wells Fargo & Company lowered their target price on Align Technology from $255.00 to $246.00 and set an "overweight" rating for the company in a research note on Thursday, May 1st. HSBC lowered Align Technology from a "buy" rating to a "hold" rating and reduced their price target for the stock from $290.00 to $170.00 in a research report on Friday, April 25th. UBS Group reduced their target price on Align Technology from $240.00 to $215.00 and set a "neutral" rating on the stock in a report on Thursday, April 24th. Finally, Mizuho reduced their target price on Align Technology from $250.00 to $245.00 and set an "outperform" rating on the stock in a report on Tuesday, April 29th. One investment analyst has rated the stock with a sell rating, four have given a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $242.92.

Align Technology Stock Up 1.7%

Shares of Align Technology stock traded up $3.38 on Friday, hitting $205.56. The stock had a trading volume of 702,548 shares, compared to its average volume of 837,398. The business's 50 day moving average is $187.06 and its two-hundred day moving average is $186.68. Align Technology, Inc. has a twelve month low of $141.74 and a twelve month high of $262.87. The stock has a market cap of $14.90 billion, a price-to-earnings ratio of 37.44, a price-to-earnings-growth ratio of 2.17 and a beta of 1.63.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced its quarterly earnings results on Wednesday, April 30th. The medical equipment provider reported $2.13 EPS for the quarter, beating analysts' consensus estimates of $2.00 by $0.13. Align Technology had a return on equity of 13.52% and a net margin of 10.29%. The company had revenue of $979.26 million during the quarter, compared to analysts' expectations of $977.90 million. During the same period in the prior year, the company earned $2.14 EPS. Align Technology's revenue was down 1.8% compared to the same quarter last year. As a group, equities analysts predict that Align Technology, Inc. will post 7.98 earnings per share for the current fiscal year.

Align Technology declared that its Board of Directors has initiated a stock buyback program on Tuesday, May 6th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the medical equipment provider to repurchase up to 7.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

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.