Wellington Management Group LLP Sells 354,012 Shares of Align Technology, Inc. $ALGN

Key Points

• Wellington Management Group LLP reduced its stake in Align Technology by 14.8%, selling 354,012 shares to bring its total ownership down to approximately 2.77%, valued at $322.6 million.
• Align Technology reported a missed earnings estimate for Q2, with earnings per share of $2.49 versus the expected $2.57, and a slight revenue decline of 1.6% year-over-year.
• The company's Board of Directors has approved a $1 billion share buyback plan, indicating confidence in the stock's undervaluation.

Wellington Management Group LLP lowered its position in shares of Align Technology, Inc. (NASDAQ:ALGN - Free Report) by 14.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,030,804 shares of the medical equipment provider's stock after selling 354,012 shares during the period. Wellington Management Group LLP owned 2.77% of Align Technology worth $322,614,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently made changes to their positions in ALGN. Redmond Asset Management LLC increased its position in Align Technology by 2.0% during the 1st quarter. Redmond Asset Management LLC now owns 2,769 shares of the medical equipment provider's stock worth $440,000 after buying an additional 54 shares during the period. Horizon Investments LLC increased its position in Align Technology by 6.2% during the first quarter. Horizon Investments LLC now owns 1,018 shares of the medical equipment provider's stock worth $162,000 after acquiring an additional 59 shares during the period. Washington Trust Advisors Inc. increased its position in Align Technology by 5.2% during the first quarter. Washington Trust Advisors Inc. now owns 1,205 shares of the medical equipment provider's stock worth $191,000 after acquiring an additional 60 shares during the period. Fulcrum Capital LLC increased its position in Align Technology by 0.8% during the first quarter. Fulcrum Capital LLC now owns 9,282 shares of the medical equipment provider's stock worth $1,475,000 after acquiring an additional 70 shares during the period. Finally, Covestor Ltd increased its position in Align Technology by 18.8% during the first quarter. Covestor Ltd now owns 493 shares of the medical equipment provider's stock worth $78,000 after acquiring an additional 78 shares during the period. Institutional investors own 88.43% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. Evercore ISI raised their target price on shares of Align Technology from $200.00 to $220.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Piper Sandler lowered their price objective on Align Technology from $250.00 to $190.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st. Wells Fargo & Company lowered their price objective on Align Technology from $246.00 to $199.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st. Needham & Company LLC restated a "hold" rating on shares of Align Technology in a research report on Thursday, May 1st. Finally, UBS Group decreased their price target on Align Technology from $240.00 to $215.00 and set a "neutral" rating on the stock in a research report on Thursday, April 24th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $215.00.

Align Technology Stock Performance

Shares of Align Technology stock traded up $8.90 during midday trading on Friday, hitting $149.57. 1,502,605 shares of the company traded hands, compared to its average volume of 2,609,758. The firm's fifty day moving average price is $175.36 and its 200-day moving average price is $177.02. The stock has a market cap of $10.84 billion, a price-to-earnings ratio of 25.22, a PEG ratio of 1.59 and a beta of 1.61. Align Technology, Inc. has a 12 month low of $127.70 and a 12 month high of $262.87.

Align Technology (NASDAQ:ALGN - Get Free Report) last posted 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 company 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%.The business's quarterly revenue was down 1.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.41 EPS. Align Technology has set its Q3 2025 guidance at EPS. Equities research analysts forecast that Align Technology, Inc. will post 7.98 earnings per share for the current year.

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

Insiders Place Their Bets

In other news, CEO Joseph M. Hogan acquired 7,576 shares of Align Technology 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 transaction, the chief executive officer directly owned 184,945 shares of the company's stock, valued at approximately $24,318,418.05. The trade was a 4.27% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.66% of the stock is owned by corporate insiders.

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.