Stock Buyback Program Authorized by Align Technology (NASDAQ:ALGN) Board of Directors

Align Technology (NASDAQ:ALGN) announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, May 6th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization allows the medical equipment provider to purchase up to 7.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its stock is undervalued.

Align Technology Trading Up 5.1 %

ALGN stock opened at $180.95 on Friday. The firm has a 50 day moving average of $167.72 and a 200-day moving average of $199.98. The firm has a market capitalization of $13.25 billion, a P/E ratio of 32.25, a price-to-earnings-growth ratio of 2.24 and a beta of 1.68. Align Technology has a 12 month low of $141.74 and a 12 month high of $283.00.

Align Technology (NASDAQ:ALGN) last released its quarterly earnings results on Wednesday, April 30th. The medical equipment provider reported $2.13 earnings per share for the quarter, topping the consensus estimate of $2.00 by $0.13. The firm had revenue of $979.26 million for the quarter, compared to analysts’ expectations of $977.90 million. Align Technology had a net margin of 10.54% and a return on equity of 13.84%. The business’s quarterly revenue was down 1.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.14 earnings per share. Sell-side analysts predict that Align Technology will post 7.98 EPS for the current year.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Needham & Company LLC restated a “hold” rating on shares of Align Technology in a report on Thursday, May 1st. Wells Fargo & Company decreased their price target on shares of Align Technology from $255.00 to $246.00 and set an “overweight” rating for the company in a research note on Thursday, May 1st. Jefferies Financial Group dropped their price objective on Align Technology from $285.00 to $260.00 and set a “buy” rating on the stock in a research note on Thursday, January 23rd. HSBC downgraded Align Technology from a “buy” rating to a “hold” rating and decreased their target price for the stock from $290.00 to $170.00 in a research report on Friday, April 25th. Finally, Morgan Stanley dropped their price target on Align Technology from $280.00 to $272.00 and set an “overweight” rating on the stock in a research report on Thursday, February 6th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $241.25.

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.