Virtu Financial LLC Lowers Stock Position in Align Technology, Inc. (NASDAQ:ALGN)

Key Points

• Virtu Financial LLC reduced its stake in Align Technology by 67.3%, selling 10,050 shares in the first quarter, leaving it with a position valued at $777,000.
• Several institutional investors have increased their holdings in Align Technology, including Citigroup Inc., which raised its position by 333.4%, now owning over 256,000 shares valued at approximately $40.7 million.
• Align Technology's latest earnings report showed an EPS of $2.49, missing estimates, and the company has initiated a $1 billion stock repurchase program, indicating a belief that its stock is undervalued.

Virtu Financial LLC decreased its holdings in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 67.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 4,889 shares of the medical equipment provider's stock after selling 10,050 shares during the period. Virtu Financial LLC's holdings in Align Technology were worth $777,000 as of its most recent SEC filing.

Other institutional investors have also recently bought and sold shares of the company. GKV Capital Management Co. Inc. acquired a new position in Align Technology during the fourth quarter worth $31,000. Compagnie Lombard Odier SCmA bought a new stake in shares of Align Technology in the 1st quarter worth $32,000. Center for Financial Planning Inc. bought a new stake in shares of Align Technology in the 1st quarter worth $35,000. Orion Capital Management LLC bought a new stake in shares of Align Technology in the 4th quarter worth $42,000. Finally, Mather Group LLC. grew its stake in shares of Align Technology by 375.0% in the 1st quarter. Mather Group LLC. now owns 437 shares of the medical equipment provider's stock worth $69,000 after acquiring an additional 345 shares in the last quarter. Institutional investors and hedge funds own 88.43% of the company's stock.

Insider Activity

In other news, CEO Joseph M. Hogan purchased 7,576 shares of the stock in a transaction dated Friday, August 1st. The shares were purchased at an average cost of $131.49 per share, with a total value of $996,168.24. Following the completion of the acquisition, the chief executive officer owned 184,945 shares in the company, valued at $24,318,418.05. This represents a 4.27% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 0.66% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on ALGN. UBS Group reduced their target price on shares of Align Technology from $240.00 to $215.00 and set a "neutral" rating for the company in a research note on Thursday, April 24th. Hsbc Global Res lowered shares of Align Technology from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 25th. Evercore ISI increased their price target on shares of Align Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. HSBC lowered shares of Align Technology from a "buy" rating to a "hold" rating and reduced their price target for the company from $290.00 to $170.00 in a research report on Friday, April 25th. Finally, Morgan Stanley restated an "equal weight" rating and set a $154.00 price target (down previously from $249.00) on shares of Align Technology in a research report on Thursday, July 31st. One analyst has rated the stock with a sell rating, five have given a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Align Technology presently has a consensus rating of "Moderate Buy" and a consensus target price of $215.00.

Align Technology Price Performance

NASDAQ:ALGN traded down $0.45 on Friday, reaching $142.43. 1,110,144 shares of the company's stock were exchanged, compared to its average volume of 2,439,051. The firm has a market cap of $10.32 billion, a price-to-earnings ratio of 24.02, a P/E/G ratio of 1.61 and a beta of 1.61. Align Technology, Inc. has a 52 week low of $127.70 and a 52 week high of $262.87. The stock has a fifty day simple moving average of $179.19 and a 200-day simple moving average of $179.62.

Align Technology (NASDAQ:ALGN - Get Free Report) last issued its 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). The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1.06 billion. Align Technology had a return on equity of 13.36% and a net margin of 11.04%. Align Technology's revenue for the quarter was down 1.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.41 EPS. As a group, sell-side analysts predict that Align Technology, Inc. will post 7.98 EPS for the current year.

Align Technology announced that its Board of Directors has initiated a share repurchase program on Tuesday, May 6th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the medical equipment provider to purchase up to 7.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's management believes its stock is 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.