Leerink Partners Issues Pessimistic Forecast for Align Technology (NASDAQ:ALGN) Stock Price

Key Points

• Leerink Partners has lowered its price target for Align Technology from $188.00 to $172.00, while maintaining an "outperform" rating, indicating a potential upside of 32.78% from its last close.
• Align Technology reported a quarterly earnings miss with EPS of $2.49, falling short of analysts' expectations of $2.57, and has seen its revenue decline by 1.6% compared to the same period last year.
• The company initiated a $200 million stock buyback plan, a signal that its leadership believes shares are undervalued, and insider trading activity shows CEO Joseph M. Hogan increasing his stake in the company.

Align Technology (NASDAQ:ALGN - Get Free Report) had its price target decreased by stock analysts at Leerink Partners from $188.00 to $172.00 in a research note issued on Tuesday,MarketScreener reports. The brokerage presently has an "outperform" rating on the medical equipment provider's stock. Leerink Partners' target price would suggest a potential upside of 32.78% from the company's previous close.

Other research analysts have also recently issued reports about the company. Weiss Ratings cut Align Technology from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, October 8th. Morgan Stanley restated an "equal weight" rating and set a $154.00 price objective (down previously from $249.00) on shares of Align Technology in a research report 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 for the company in a research report on Thursday, July 31st. Mizuho decreased their target price on shares of Align Technology from $210.00 to $170.00 and set an "outperform" rating for the company in a research note on Monday. Finally, Wells Fargo & Company cut 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 research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $187.67.

Align Technology Stock Up 3.0%

Shares of Align Technology stock opened at $129.54 on Tuesday. Align Technology has a 52-week low of $122.00 and a 52-week high of $246.19. The company has a market capitalization of $9.39 billion, a P/E ratio of 21.84, a P/E/G ratio of 1.43 and a beta of 1.70. The company has a 50 day moving average of $135.45 and a 200 day moving average of $164.18.

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). The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.06 billion. Align Technology had a net margin of 11.04% and a return on equity of 13.36%. Align Technology's revenue for the quarter was down 1.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.41 earnings per share. Align Technology has set its Q3 2025 guidance at EPS. As a group, research analysts anticipate that Align Technology will post 7.98 earnings per share for the current fiscal year.

Align Technology announced that its Board of Directors has initiated a stock buyback plan on Tuesday, August 5th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the medical equipment provider to repurchase up to 2% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Activity at Align Technology

In other news, CEO Joseph M. Hogan bought 7,576 shares of the firm's stock in a transaction that occurred on 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 transaction, the chief executive officer owned 184,945 shares in the company, valued at $24,318,418.05. The trade was a 4.27% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.66% of the stock is currently owned by company insiders.

Institutional Trading of Align Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC raised its stake in Align Technology by 44.3% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 9,380 shares of the medical equipment provider's stock worth $1,490,000 after purchasing an additional 2,881 shares during the period. Exchange Traded Concepts LLC increased its holdings in shares of Align Technology by 27.7% during the 1st quarter. Exchange Traded Concepts LLC now owns 4,929 shares of the medical equipment provider's stock worth $783,000 after buying an additional 1,068 shares during the last quarter. Janney Montgomery Scott LLC increased its holdings in shares of Align Technology by 48.9% during the 1st quarter. Janney Montgomery Scott LLC now owns 10,120 shares of the medical equipment provider's stock worth $1,608,000 after buying an additional 3,325 shares during the last quarter. Schaper Benz & Wise Investment Counsel Inc. WI raised its position in shares of Align Technology by 30.5% in the 1st quarter. Schaper Benz & Wise Investment Counsel Inc. WI now owns 52,694 shares of the medical equipment provider's stock worth $8,371,000 after buying an additional 12,315 shares during the period. Finally, State of Alaska Department of Revenue boosted its holdings in Align Technology by 2.7% in the first quarter. State of Alaska Department of Revenue now owns 8,220 shares of the medical equipment provider's stock valued at $1,305,000 after acquiring an additional 215 shares during the last quarter. Hedge funds and other institutional investors own 88.43% 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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