Align Technology (NASDAQ:ALGN) Posts Earnings Results, Beats Estimates By $0.02 EPS

Align Technology (NASDAQ:ALGN) announced its quarterly earnings results on Wednesday. The medical equipment provider reported $2.64 EPS for the quarter, beating the consensus estimate of $2.62 by $0.02, FiscalAI reports. The firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.05 billion. Align Technology had a return on equity of 15.82% and a net margin of 10.50%.

Align Technology Stock Performance

ALGN traded up $4.48 during trading on Wednesday, hitting $180.08. The stock had a trading volume of 1,657,127 shares, compared to its average volume of 1,119,258. The stock has a 50 day simple moving average of $173.90 and a two-hundred day simple moving average of $175.18. Align Technology has a twelve month low of $122.00 and a twelve month high of $207.08. The company has a market capitalization of $12.90 billion, a PE ratio of 30.21, a PEG ratio of 1.72 and a beta of 1.67.

Align Technology announced that its board has approved a share buyback plan on Wednesday, April 29th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the medical equipment provider to reacquire up to 1.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on ALGN. Zacks Research lowered shares of Align Technology from a “strong-buy” rating to a “hold” rating in a research note on Thursday, July 16th. Evercore boosted their price target on shares of Align Technology from $200.00 to $220.00 in a report on Thursday, April 30th. Morgan Stanley boosted their price target on shares of Align Technology from $169.00 to $188.00 and gave the company an “equal weight” rating in a report on Friday, April 24th. Citigroup started coverage on shares of Align Technology in a research report on Wednesday, April 15th. They issued a “buy” rating and a $240.00 price target for the company. Finally, Weiss Ratings upgraded shares of Align Technology from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $206.36.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Invesco Ltd. raised its stake in Align Technology by 37.4% in the third quarter. Invesco Ltd. now owns 1,497,535 shares of the medical equipment provider’s stock valued at $187,521,000 after buying an additional 407,559 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Align Technology by 72.0% during the third quarter. Bank of America Corp DE now owns 1,353,125 shares of the medical equipment provider’s stock valued at $169,438,000 after acquiring an additional 566,488 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Align Technology by 65.8% during the fourth quarter. AQR Capital Management LLC now owns 1,196,428 shares of the medical equipment provider’s stock valued at $186,822,000 after acquiring an additional 474,756 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its position in shares of Align Technology by 30.9% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,005,837 shares of the medical equipment provider’s stock valued at $157,061,000 after purchasing an additional 237,581 shares during the last quarter. Finally, Morgan Stanley raised its position in shares of Align Technology by 4.7% in the 4th quarter. Morgan Stanley now owns 944,850 shares of the medical equipment provider’s stock valued at $147,539,000 after purchasing an additional 42,282 shares during the last quarter. 88.43% of the stock is owned by institutional investors and hedge funds.

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.