Stifel Nicolaus Has Lowered Expectations for Align Technology (NASDAQ:ALGN) Stock Price

Key Points

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Align Technology (NASDAQ:ALGN - Get Free Report) had its price target cut by equities research analysts at Stifel Nicolaus from $275.00 to $200.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the medical equipment provider's stock. Stifel Nicolaus' price target points to a potential upside of 46.50% from the company's current price.

Several other equities analysts have also recently weighed in on the stock. Hsbc Global Res cut shares of Align Technology from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 25th. Wells Fargo & Company cut their target price on shares of Align Technology from $255.00 to $246.00 and set an "overweight" rating for the company in a research note on Thursday, May 1st. HSBC cut shares of Align Technology from a "buy" rating to a "hold" rating and cut their target price for the company from $290.00 to $170.00 in a research note on Friday, April 25th. Needham & Company LLC reaffirmed a "hold" rating on shares of Align Technology in a research note on Thursday, May 1st. Finally, Mizuho set a $210.00 price objective on shares of Align Technology in a research note on Thursday. One research analyst has rated the stock with a sell rating, five have given a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $215.00.

Align Technology Price Performance

Shares of ALGN stock traded up $7.51 on Thursday, hitting $136.52. 7,974,235 shares of the stock traded hands, compared to its average volume of 1,575,058. The firm has a market cap of $9.90 billion, a price-to-earnings ratio of 23.02, a PEG ratio of 1.36 and a beta of 1.61. Align Technology has a 52 week low of $127.70 and a 52 week high of $262.87. The firm has a 50 day simple moving average of $187.04 and a two-hundred day simple moving average of $185.60.

Align Technology (NASDAQ:ALGN - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The medical equipment provider reported $2.49 EPS for the quarter, missing the consensus estimate of $2.57 by ($0.08). The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $1.06 billion. Align Technology had a net margin of 11.04% and a return on equity of 13.36%. The firm's revenue for the quarter was down 1.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.41 earnings per share. Sell-side analysts forecast that Align Technology will post 7.98 EPS for the current year.

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

Insider Activity

In related news, CEO Joseph M. Hogan acquired 7,576 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was bought at an average price of $131.49 per share, for a total transaction of $996,168.24. Following the acquisition, the chief executive officer directly owned 184,945 shares of the company's stock, valued at $24,318,418.05. This represents a 4.27% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.66% of the company's stock.

Institutional Investors Weigh In On Align Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ALGN. GKV Capital Management Co. Inc. bought a new stake in Align Technology during the 4th quarter valued at about $31,000. Compagnie Lombard Odier SCmA bought a new stake in Align Technology during the 1st quarter valued at about $32,000. Cromwell Holdings LLC lifted its holdings in Align Technology by 2,900.0% during the 2nd quarter. Cromwell Holdings LLC now owns 180 shares of the medical equipment provider's stock valued at $34,000 after buying an additional 174 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new stake in Align Technology during the 4th quarter valued at about $35,000. Finally, Center for Financial Planning Inc. bought a new stake in Align Technology during the 1st quarter valued at about $35,000. 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.