Align Technology Target of Unusually High Options Trading (NASDAQ:ALGN)

Key Points

• Options activity surged: Investors purchased 2,293 call options on Align Technology, 72% above the average volume of 1,334 contracts.
• Shares declined 2.9% to $154, trading below both the 50-day and 200-day moving averages. The stock has a $11.03 billion market capitalization and a 52-week range of $122.00 to $200.43.
• Align exceeded quarterly earnings and revenue expectations, reporting $2.64 in EPS and $1.06 billion in revenue, while analysts maintain a “Moderate Buy” consensus with an average price target of $206.36.

Align Technology, Inc. (NASDAQ:ALGN - Get Free Report) was the recipient of unusually large options trading on Tuesday. Stock investors purchased 2,293 call options on the stock. This is an increase of 72% compared to the average volume of 1,334 call options.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Parkside Financial Bank & Trust increased its position in shares of Align Technology by 1,125.1% during the second quarter. Parkside Financial Bank & Trust now owns 10,156 shares of the medical equipment provider's stock worth $1,713,000 after purchasing an additional 9,327 shares in the last quarter. Brown Lisle Cummings Inc. boosted its position in Align Technology by 4,454.2% in the second quarter. Brown Lisle Cummings Inc. now owns 1,093 shares of the medical equipment provider's stock valued at $184,000 after buying an additional 1,069 shares during the last quarter. Parrish Capital LLC lifted its position in Align Technology by 3.3% during the second quarter. Parrish Capital LLC now owns 3,289 shares of the medical equipment provider's stock valued at $555,000 after purchasing an additional 104 shares during the period. Amundi raised its stake in shares of Align Technology by 21.2% during the 2nd quarter. Amundi now owns 434,656 shares of the medical equipment provider's stock valued at $73,309,000 after buying an additional 75,928 shares during the last quarter. Finally, HighTower Advisors LLC raised its position in Align Technology by 2.4% during the second quarter. HighTower Advisors LLC now owns 7,718 shares of the medical equipment provider's stock valued at $1,302,000 after acquiring an additional 182 shares in the last quarter. Institutional investors own 88.43% of the company's stock.

Align Technology Trading Down 2.9%

Shares of ALGN stock traded down $4.63 on Tuesday, reaching $154.00. 99,470 shares of the company's stock were exchanged, compared to its average volume of 1,076,099. The company's fifty day simple moving average is $171.22 and its 200 day simple moving average is $173.71. Align Technology has a 52 week low of $122.00 and a 52 week high of $200.43. The stock has a market capitalization of $11.03 billion, a PE ratio of 26.78, a P/E/G ratio of 1.69 and a beta of 1.65.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The medical equipment provider reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.62 by $0.02. Align Technology had a net margin of 9.99% and a return on equity of 15.86%. The company had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.05 billion. During the same quarter last year, the business posted $2.49 EPS. The firm's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, sell-side analysts predict that Align Technology will post 9.38 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Wall Street Zen downgraded shares of Align Technology from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. BMO Capital Markets started coverage on shares of Align Technology in a report on Wednesday, July 8th. They issued an "outperform" rating and a $209.00 price target for the company. Weiss Ratings upgraded Align Technology from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday. Zacks Research cut Align Technology from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 16th. Finally, UBS Group restated a "neutral" rating and set a $189.00 price target on shares of Align Technology in a report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $206.36.

About Align Technology

Align Technology, Inc NASDAQ: ALGN pioneered the use of digital technology in orthodontics through the development of the Invisalign system, a series of clear, removable aligners that provide an alternative to traditional metal braces. Since its founding in 1997 by Zia Chishti and Kelsey Wirth, the Tempe, Arizona–based company has expanded its focus to include intraoral scanners, CAD/CAM software for dental laboratories and comprehensive digital dentistry solutions.

The company's signature Invisalign system leverages 3D imaging and computer-aided design (CAD) to create customized aligners that gradually reposition teeth, improving patient comfort and treatment predictability.

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