Align Technology (NASDAQ:ALGN) Rating Lowered to “Hold” at Zacks Research

Align Technology (NASDAQ:ALGN) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Thursday,Zacks.com reports.

A number of other brokerages have also issued reports on ALGN. Leerink Partners raised their target price on shares of Align Technology from $225.00 to $230.00 in a report on Thursday, April 30th. Citigroup began coverage on Align Technology in a research note on Wednesday, April 15th. They set a “buy” rating and a $240.00 target price for the company. Wall Street Zen upgraded Align Technology from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 4th. Evercore raised their price objective on shares of Align Technology from $200.00 to $220.00 in a report on Thursday, April 30th. Finally, BMO Capital Markets started coverage on Align Technology in a research report on Wednesday, July 8th. They set an “outperform” rating and a $209.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Align Technology currently has an average rating of “Moderate Buy” and an average price target of $206.07.

Align Technology Price Performance

ALGN stock opened at $176.76 on Thursday. The stock has a market cap of $12.66 billion, a price-to-earnings ratio of 29.66, a price-to-earnings-growth ratio of 1.83 and a beta of 1.67. The company has a fifty day moving average price of $172.30 and a two-hundred day moving average price of $174.48. Align Technology has a one year low of $122.00 and a one year high of $208.30.

Align Technology (NASDAQ:ALGN) last announced its quarterly earnings results on Wednesday, April 29th. The medical equipment provider reported $2.58 EPS for the quarter, beating analysts’ consensus estimates of $2.26 by $0.32. Align Technology had a net margin of 10.50% and a return on equity of 15.82%. The business had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same quarter in the prior year, the business earned $2.13 EPS. Align Technology’s quarterly revenue was up 6.2% on a year-over-year basis. Research analysts anticipate that Align Technology will post 9.48 EPS for the current fiscal year.

Align Technology declared that its Board of Directors has initiated a stock buyback program on Wednesday, April 29th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the medical equipment provider to purchase up to 1.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Capital International Investors lifted its stake in shares of Align Technology by 52.2% in the fourth quarter. Capital International Investors now owns 4,643,221 shares of the medical equipment provider’s stock valued at $725,039,000 after buying an additional 1,592,848 shares in the last quarter. Ruane Cunniff & Goldfarb L.P. bought a new position in shares of Align Technology during the 4th quarter worth approximately $190,899,000. Norges Bank purchased a new position in Align Technology in the fourth quarter worth $155,556,000. Assenagon Asset Management S.A. boosted its holdings in shares of Align Technology by 413.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 989,388 shares of the medical equipment provider’s stock worth $169,611,000 after buying an additional 796,529 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in Align Technology by 247.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,005,413 shares of the medical equipment provider’s stock valued at $156,995,000 after acquiring an additional 715,919 shares during the last quarter. Institutional investors own 88.43% of the company’s stock.

Align Technology Company Profile

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.