Align Technology (NASDAQ:ALGN) Shares Gap Up After Better-Than-Expected Earnings

Shares of Align Technology, Inc. (NASDAQ:ALGN) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $131.91, but opened at $145.22. Align Technology shares last traded at $141.8220, with a volume of 852,448 shares traded.

The medical equipment provider reported $2.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.38 by $0.23. The firm had revenue of $995.69 million for the quarter, compared to the consensus estimate of $980.75 million. Align Technology had a return on equity of 14.06% and a net margin of 9.50%.The firm’s quarterly revenue was up 1.8% compared to the same quarter last year. During the same quarter last year, the business posted $2.35 EPS. Align Technology has set its Q4 2025 guidance at EPS.

Align Technology declared that its Board of Directors has initiated a share repurchase program on Tuesday, August 5th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the medical equipment provider to purchase up to 2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts have issued reports on ALGN shares. Evercore ISI raised their price objective on shares of Align Technology from $160.00 to $170.00 and gave the stock an “outperform” rating in a research report on Thursday. Wells Fargo & Company lowered their price objective on shares of Align Technology from $199.00 to $181.00 and set an “overweight” rating on the stock in a research report on Thursday. Needham & Company LLC reissued a “hold” rating on shares of Align Technology in a report on Thursday. Weiss Ratings lowered Align Technology from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, October 8th. Finally, Jefferies Financial Group reiterated a “hold” rating and issued a $140.00 target price (down from $215.00) on shares of Align Technology in a research note on Friday, October 10th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $174.36.

Institutional Investors Weigh In On Align Technology

A number of institutional investors have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in shares of Align Technology in the second quarter valued at approximately $155,297,000. Ninety One UK Ltd boosted its position 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 worth $307,800,000 after purchasing an additional 716,954 shares in the last quarter. Federated Hermes Inc. boosted its position in shares of Align Technology by 510.3% during the 1st quarter. Federated Hermes Inc. now owns 707,514 shares of the medical equipment provider’s stock worth $112,396,000 after purchasing an additional 591,588 shares in the last quarter. Mackenzie Financial Corp boosted its position in shares of Align Technology by 4,217.3% during the 1st quarter. Mackenzie Financial Corp now owns 426,205 shares of the medical equipment provider’s stock worth $67,707,000 after purchasing an additional 416,333 shares in the last quarter. Finally, Nordea Investment Management AB grew its position in Align Technology by 94.5% during the second quarter. Nordea Investment Management AB now owns 638,341 shares of the medical equipment provider’s stock worth $121,055,000 after buying an additional 310,091 shares during the period. Hedge funds and other institutional investors own 88.43% of the company’s stock.

Align Technology Price Performance

The firm’s 50-day simple moving average is $133.47 and its two-hundred day simple moving average is $162.00. The company has a market capitalization of $10.03 billion, a price-to-earnings ratio of 26.83, a price-to-earnings-growth ratio of 1.49 and a beta of 1.70.

Align Technology Company Profile

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.