Align Technology (NASDAQ:ALGN) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Align Technology (NASDAQ:ALGN) released its earnings results on Wednesday. The medical equipment provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.62 by $0.02, FiscalAI reports. Align Technology had a net margin of 10.50% and a return on equity of 15.82%. The business had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.05 billion.

Align Technology Stock Up 2.5%

Shares of ALGN stock traded up $4.43 during mid-day trading on Wednesday, reaching $180.03. The company’s stock had a trading volume of 1,616,084 shares, compared to its average volume of 1,115,390. The firm has a market capitalization of $12.89 billion, a PE ratio of 30.21, a price-to-earnings-growth ratio of 1.72 and a beta of 1.67. The company’s 50 day simple moving average is $173.90 and its 200-day simple moving average is $175.18. Align Technology has a 12-month low of $122.00 and a 12-month high of $207.08.

Align Technology declared that its Board of Directors has approved a share buyback plan on Wednesday, April 29th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the medical equipment provider to reacquire up to 1.6% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ALGN. Weiss Ratings upgraded shares of Align Technology from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, July 17th. Leerink Partners upped their price objective on Align Technology from $225.00 to $230.00 in a report on Thursday, April 30th. Zacks Research cut Align Technology from a “strong-buy” rating to a “hold” rating in a report on Thursday, July 16th. 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 price target for the company. Finally, Wall Street Zen upgraded Align Technology from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 4th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Align Technology presently has a consensus rating of “Moderate Buy” and an average target price of $206.36.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ALGN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Align Technology by 4.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,222 shares of the medical equipment provider’s stock worth $1,624,000 after acquiring an additional 469 shares in the last quarter. Focus Partners Wealth raised its stake in shares of Align Technology by 5.2% during the first quarter. Focus Partners Wealth now owns 3,062 shares of the medical equipment provider’s stock valued at $486,000 after purchasing an additional 151 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of Align Technology during the second quarter worth $204,000. EverSource Wealth Advisors LLC lifted its position in shares of Align Technology by 55.7% during the second quarter. EverSource Wealth Advisors LLC now owns 531 shares of the medical equipment provider’s stock worth $101,000 after purchasing an additional 190 shares in the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of Align Technology by 201.7% in the second quarter. First Trust Advisors LP now owns 88,270 shares of the medical equipment provider’s stock valued at $16,712,000 after purchasing an additional 59,010 shares during the period. Institutional investors and hedge funds own 88.43% of the company’s stock.

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.