Shares of Align Technology Inc. (NASDAQ: ALGN) received an upgrade from a hold rating to a buy rating by Wall Street Zen in a recent research report published on Saturday. This marks a significant shift in sentiment towards the company, which has been the subject of various evaluations by different financial institutions.
The updates from analysts have been notable in recent weeks. On September 30, 2023, Zacks Research revised its rating for Align Technology from a “strong sell” to a “hold.” Later, on October 30, Jefferies Financial Group increased its target price for the shares from $140.00 to $155.00. Needham & Company also reiterated a “hold” rating on the same day, while Evercore ISI reduced its price target from $220.00 to $170.00, assigning an “outperform” rating. Stifel Nicolaus set a price objective of $200.00 on the stock, reflecting ongoing investor interest.
The consensus rating for Align Technology currently stands at “Hold,” with one research analyst indicating a “Strong Buy” rating, six analysts issuing a Buy rating, eight assigning a Hold rating, and one rating it as a Sell. According to MarketBeat, the average price target for the stock is $172.18.
Recent Earnings Report Highlights Growth
Align Technology announced its latest earnings results on October 29, 2023, revealing a strong performance for the quarter. The medical equipment provider reported earnings per share (EPS) of $2.61, surpassing the consensus estimate of $2.38 by $0.23. The company experienced a return on equity of 13.96% and a net profit margin of 9.50%. Revenue for the quarter reached $995.69 million, exceeding analysts’ expectations of $980.75 million. This represents a 1.8% increase in revenue compared to the same quarter the previous year, when the company earned $2.35 per share.
Equities research analysts forecast that Align Technology will achieve an EPS of $7.98 for the current fiscal year.
Institutional Investment Trends
Recent trends in institutional investment reflect growing confidence in Align Technology. Vanguard Group Inc. increased its holdings by 0.7% in the third quarter, now owning 8,301,611 shares valued at approximately $1.04 billion. Capital International Investors significantly boosted its position by 88.6%, acquiring an additional 1,433,393 shares to hold 3,050,373 shares valued at $381.97 million.
Other large investors have also made notable adjustments. Ninety One UK Ltd increased its stake by 18.3%, acquiring 350,883 additional shares, while Invesco Ltd. expanded its position by 37.4%, adding 407,559 shares. Additionally, Holocene Advisors LP entered the market with a new stake worth about $179.04 million. Currently, institutional investors and hedge funds own 88.43% of Align Technology’s shares.
Founded in 1997 by Zia Chishti and Kelsey Wirth, Align Technology pioneered the use of digital technology in orthodontics with its innovative Invisalign system, a series of clear, removable aligners that offer an alternative to traditional metal braces. The company, based in Tempe, Arizona, has expanded its focus to include intraoral scanners and comprehensive digital dentistry solutions, leveraging 3D imaging and computer-aided design (CAD) for customized patient care.
As Align Technology continues to adapt and grow, these latest ratings and earnings results reflect a renewed confidence among investors and analysts alike.
