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

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

Several other analysts also recently weighed in on the company. Citigroup initiated coverage on Align Technology in a research report on Wednesday, April 15th. They issued a “buy” rating and a $240.00 price objective for the company. Leerink Partners raised their target price on shares of Align Technology from $225.00 to $230.00 in a report on Thursday, April 30th. BMO Capital Markets started coverage on shares of Align Technology in a research note on Wednesday, July 8th. They issued an “outperform” rating and a $209.00 target price on the stock. Weiss Ratings lowered shares of Align Technology from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, June 4th. Finally, Wall Street Zen upgraded shares of Align Technology from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 4th. One equities research 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 company’s stock. According to data from MarketBeat.com, Align Technology currently has an average rating of “Moderate Buy” and an average price target of $206.07.

Align Technology Trading Down 0.9%

NASDAQ ALGN opened at $176.76 on Thursday. Align Technology has a 1-year low of $122.00 and a 1-year high of $208.30. The stock has a 50-day moving average of $172.30 and a 200-day moving average of $174.48. The firm has a market cap of $12.66 billion, a PE ratio of 29.66, a price-to-earnings-growth ratio of 1.83 and a beta of 1.67.

Align Technology (NASDAQ:ALGN) last issued its earnings results on Wednesday, April 29th. The medical equipment provider reported $2.58 earnings per share for the quarter, beating the consensus estimate of $2.26 by $0.32. Align Technology had a return on equity of 15.82% and a net margin of 10.50%.The company had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the prior year, the business posted $2.13 EPS. Align Technology’s quarterly revenue was up 6.2% compared to the same quarter last year. As a group, equities research analysts forecast that Align Technology will post 9.48 earnings per share for the current fiscal year.

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

Institutional Trading of Align Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Blue Trust Inc. boosted its holdings in Align Technology by 77.5% in the first quarter. Blue Trust Inc. now owns 158 shares of the medical equipment provider’s stock valued at $27,000 after acquiring an additional 69 shares in the last quarter. Sunbelt Securities Inc. raised its holdings in Align Technology by 222.4% in the 4th quarter. Sunbelt Securities Inc. now owns 158 shares of the medical equipment provider’s stock worth $25,000 after purchasing an additional 109 shares in the last quarter. Independence Bank of Kentucky raised its holdings in Align Technology by 77.7% in the 4th quarter. Independence Bank of Kentucky now owns 183 shares of the medical equipment provider’s stock worth $29,000 after purchasing an additional 80 shares in the last quarter. CYBER HORNET ETFs LLC purchased a new stake in shares of Align Technology in the 2nd quarter worth about $36,000. Finally, Tobam purchased a new stake in shares of Align Technology in the 4th quarter worth about $30,000. Hedge funds and other institutional investors 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.