Leerink Partnrs Has Optimistic View of ALGN FY2025 Earnings

Key Points

• Leerink Partners has raised its FY2025 earnings per share estimate for Align Technology from $8.08 to $8.10, indicating growing optimism about the company’s financial performance.
• Analysts have set varying price targets for Align Technology, with Leerink Partners reducing theirs from $188.00 to $172.00, while Jefferies decreased theirs from $215.00 to $140.00.
• Align Technology’s Board has authorized a $200 million stock buyback program, reflecting the board's belief that the company's shares may be undervalued.

Align Technology, Inc. (NASDAQ:ALGN - Free Report) - Stock analysts at Leerink Partnrs upped their FY2025 earnings per share estimates for Align Technology in a research note issued on Tuesday, October 14th. Leerink Partnrs analyst M. Cherny now expects that the medical equipment provider will post earnings of $8.10 per share for the year, up from their prior estimate of $8.08. The consensus estimate for Align Technology's current full-year earnings is $7.98 per share. Leerink Partnrs also issued estimates for Align Technology's FY2026 earnings at $8.75 EPS, FY2027 earnings at $9.80 EPS and FY2028 earnings at $11.27 EPS.

A number of other equities analysts also recently commented on ALGN. Piper Sandler decreased their price target on Align Technology from $250.00 to $190.00 and set an "overweight" rating for the company in a research note on Thursday, July 31st. Leerink Partners decreased their price target on Align Technology from $188.00 to $172.00 and set an "outperform" rating for the company in a research note on Tuesday. Jefferies Financial Group reiterated a "hold" rating and issued a $140.00 price target (down from $215.00) on shares of Align Technology in a research note on Friday, October 10th. Evercore ISI decreased their target price on Align Technology from $170.00 to $160.00 and set an "outperform" rating for the company in a research note on Wednesday, October 8th. Finally, Morgan Stanley restated an "equal weight" rating and issued a $154.00 target price (down from $249.00) on shares of Align Technology in a research note on Thursday, July 31st. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Align Technology has a consensus rating of "Hold" and an average price target of $187.67.

Align Technology Stock Performance

NASDAQ:ALGN opened at $128.43 on Thursday. The company has a market capitalization of $9.31 billion, a price-to-earnings ratio of 21.66, a price-to-earnings-growth ratio of 1.47 and a beta of 1.70. Align Technology has a one year low of $122.00 and a one year high of $246.19. The stock has a 50-day simple moving average of $135.08 and a 200 day simple moving average of $163.69.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced its earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 earnings per share (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 business had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $1.06 billion. During the same period in the previous year, the firm posted $2.41 earnings per share. The firm's revenue was down 1.6% compared to the same quarter last year. Align Technology has set its Q3 2025 guidance at EPS.

Align Technology announced that its Board of Directors has approved a stock 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 shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In other Align Technology news, CEO Joseph M. Hogan acquired 7,576 shares of Align Technology stock in a transaction dated Friday, August 1st. The stock was acquired at an average cost 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 approximately $24,318,418.05. This represents a 4.27% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.66% of the company's stock.

Hedge Funds Weigh In On Align Technology

Several hedge funds and other institutional investors have recently made changes to their positions in ALGN. Rothschild Investment LLC boosted its position in shares of Align Technology by 140.3% during the second quarter. Rothschild Investment LLC now owns 149 shares of the medical equipment provider's stock worth $28,000 after buying an additional 87 shares during the period. True Wealth Design LLC raised its holdings in Align Technology by 7,650.0% during the second quarter. True Wealth Design LLC now owns 155 shares of the medical equipment provider's stock worth $29,000 after purchasing an additional 153 shares in the last quarter. Cromwell Holdings LLC raised its holdings in Align Technology by 2,900.0% during the second quarter. Cromwell Holdings LLC now owns 180 shares of the medical equipment provider's stock worth $34,000 after purchasing an additional 174 shares in the last quarter. Center for Financial Planning Inc. bought a new stake in Align Technology during the first quarter worth approximately $35,000. Finally, SVB Wealth LLC bought a new stake in Align Technology during the first quarter worth approximately $36,000. 88.43% of the stock is currently owned by institutional investors and hedge funds.

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.

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