Zacks Research Upgrades Align Technology (NASDAQ:ALGN) to Hold

Key Points

• Zacks Research upgraded Align Technology from a "strong sell" rating to a "hold" rating, indicating a shift in market sentiment towards the stock.
• Align Technology has seen recent changes in target prices from various research analysts, with a consensus average target price of $215.00 and a breakdown of ratings including 1 Strong Buy and 8 Buy ratings.
• The company recently reported earnings that missed analysts' expectations, showing quarterly revenue down 1.6% compared to the previous year, and announced a $200 million share repurchase program as a sign of undervaluation.

Align Technology (NASDAQ:ALGN - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

Other research analysts have also recently issued research reports about the company. Mizuho set a $210.00 target price on Align Technology in a research note on Thursday, July 31st. Stifel Nicolaus lowered their price target on Align Technology from $275.00 to $200.00 and set a "buy" rating for the company in a report on Thursday, July 31st. Evercore ISI lifted their target price on Align Technology from $200.00 to $220.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Wells Fargo & Company decreased their target price on Align Technology from $246.00 to $199.00 and set an "overweight" rating for the company in a research report on Thursday, July 31st. Finally, Morgan Stanley reaffirmed an "equal weight" rating and set a $154.00 target price (down from $249.00) on shares of Align Technology in a research report on Thursday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $215.00.

Align Technology Stock Performance

ALGN opened at $127.52 on Tuesday. The stock has a market cap of $9.24 billion, a price-to-earnings ratio of 21.50, a P/E/G ratio of 1.41 and a beta of 1.71. The stock's 50 day moving average price is $143.14 and its 200-day moving average price is $166.22. Align Technology has a one year low of $122.00 and a one year high of $246.19.

Align Technology (NASDAQ:ALGN - Get Free Report) last released its earnings results on Wednesday, July 30th. The medical equipment provider reported $2.49 EPS for the quarter, missing analysts' consensus estimates of $2.57 by ($0.08). The business 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 company's quarterly revenue was down 1.6% compared to the same quarter last year. During the same period in the prior year, the company posted $2.41 EPS. Align Technology has set its Q3 2025 guidance at EPS. As a group, analysts predict that Align Technology will post 7.98 earnings per share for the current fiscal year.

Align Technology announced that its board has authorized a share repurchase program on Tuesday, August 5th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the medical equipment provider to reacquire up to 2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO Joseph M. Hogan bought 7,576 shares of the stock in a transaction 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 completion of the acquisition, the chief executive officer directly owned 184,945 shares in the company, valued at approximately $24,318,418.05. This represents a 4.27% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.66% of the stock is currently owned by corporate insiders.

Institutional Trading of Align Technology

A number of hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in Align Technology by 2.2% during the first quarter. Vanguard Group Inc. now owns 8,441,592 shares of the medical equipment provider's stock worth $1,341,031,000 after buying an additional 185,187 shares during the period. Ninety One UK Ltd lifted its holdings in shares of Align Technology by 58.7% during the 1st quarter. Ninety One UK Ltd now owns 1,937,555 shares of the medical equipment provider's stock valued at $307,800,000 after purchasing an additional 716,954 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Align Technology by 12.7% during the 1st quarter. Invesco Ltd. now owns 1,219,715 shares of the medical equipment provider's stock valued at $193,764,000 after purchasing an additional 137,553 shares during the last quarter. Federated Hermes Inc. lifted its holdings in shares of Align Technology by 31.0% during the 2nd quarter. Federated Hermes Inc. now owns 926,733 shares of the medical equipment provider's stock valued at $175,458,000 after purchasing an additional 219,219 shares during the last quarter. Finally, Disciplined Growth Investors Inc. MN lifted its holdings in shares of Align Technology by 0.9% during the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 844,987 shares of the medical equipment provider's stock valued at $159,981,000 after purchasing an additional 7,754 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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