Zacks Investment Research Downgrades Align Technology Inc. (ALGN) to Hold
Align Technology Inc. (NASDAQ:ALGN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “Align Technology ended the second quarter 2016 on a promising note, squarely beating the Zacks Consensus Estimate. We are also upbeat about the persistently strong Invisalign volumes registered by the company, which in turn drove the top and the bottom line during the quarter. The company also has a strong cash balance position that enables it to adopt attractive share repurchase programs and in turn pay back solid returns to its investors. Going forward, management anticipates consistent growth in its Asia Pacific region, which in turn will mitigate the typical seasonality it usually experiences in the European nations. On the flip side, competitive landscape and ongoing macroeconomic headwinds continue to cast a negative impact on dental procedures.”
Other research analysts also recently issued research reports about the stock. Stifel Nicolaus raised their target price on shares of Align Technology from $82.00 to $95.00 and gave the company a “buy” rating in a research report on Thursday, July 28th. Robert W. Baird downgraded shares of Align Technology from an “outperform” rating to a “neutral” rating and set a $96.00 target price on the stock. in a research report on Monday, October 3rd. Two research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $85.09.
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Shares of Align Technology (NASDAQ:ALGN) traded up 0.76% on Wednesday, reaching $90.29. 319,219 shares of the company were exchanged. Align Technology has a 52 week low of $55.32 and a 52 week high of $96.90. The firm’s 50 day moving average price is $92.94 and its 200 day moving average price is $83.44. The stock has a market capitalization of $7.23 billion, a price-to-earnings ratio of 44.04 and a beta of 1.87.
Align Technology (NASDAQ:ALGN) last posted its earnings results on Thursday, July 28th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.14. The business had revenue of $269.40 million for the quarter, compared to the consensus estimate of $259.29 million. Align Technology had a net margin of 17.67% and a return on equity of 19.40%. The company’s revenue for the quarter was up 28.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.39 EPS. Equities research analysts anticipate that Align Technology will post $2.28 EPS for the current year.
In other Align Technology news, VP Zelko Relic sold 13,577 shares of Align Technology stock in a transaction that occurred on Monday, August 15th. The shares were sold at an average price of $95.91, for a total transaction of $1,302,170.07. Following the completion of the sale, the vice president now directly owns 1,375 shares in the company, valued at approximately $131,876.25. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Jennifer Olson sold 799 shares of Align Technology stock in a transaction that occurred on Monday, August 29th. The shares were sold at an average price of $93.30, for a total transaction of $74,546.70. Following the sale, the vice president now owns 4,483 shares of the company’s stock, valued at $418,263.90. The disclosure for this sale can be found here. Company insiders own 2.00% of the company’s stock.
A number of hedge funds have recently made changes to their positions in ALGN. IFP Advisors Inc boosted its stake in shares of Align Technology by 10.1% in the second quarter. IFP Advisors Inc now owns 1,260 shares of the company’s stock valued at $101,000 after buying an additional 116 shares during the last quarter. CWM LLC acquired a new stake in shares of Align Technology during the second quarter valued at approximately $121,000. Advisor Group Inc. acquired a new stake in shares of Align Technology during the second quarter valued at approximately $128,000. Mckinley Capital Management LLC Delaware acquired a new stake in shares of Align Technology during the second quarter valued at approximately $147,000. Finally, DIAM Co. Ltd. acquired a new stake in shares of Align Technology during the second quarter valued at approximately $162,000. Institutional investors and hedge funds own 87.12% of the company’s stock.
Align Technology Company Profile
Align Technology, Inc designs, manufactures and markets a system of clear aligner therapy, intra-oral scanners and computer-aided design and computer-aided manufacturing (CAD/CAM) digital services used in dentistry, orthodontics and dental records storage. The Company operates through two segments: Clear Aligner segment and Scanner and Services (Scanner) segment.
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