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

Align Technology (NASDAQ:ALGN) declared that its Board of Directors has initiated a stock repurchase program on Tuesday, May 6th, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the medical equipment provider to reacquire up to 7.9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Align Technology Price Performance

NASDAQ:ALGN opened at $180.95 on Friday. The firm has a market capitalization of $13.25 billion, a P/E ratio of 32.25, a PEG ratio of 2.24 and a beta of 1.68. Align Technology has a one year low of $141.74 and a one year high of $283.00. The company’s 50-day simple moving average is $167.72 and its 200 day simple moving average is $199.98.

Align Technology (NASDAQ:ALGN) last issued its quarterly earnings results on Wednesday, April 30th. The medical equipment provider reported $2.13 EPS for the quarter, topping analysts’ consensus estimates 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 return on equity of 13.84% and a net margin of 10.54%. The business’s revenue for the quarter was down 1.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.14 EPS. On average, equities research analysts expect that Align Technology will post 7.98 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have weighed in on ALGN. Evercore ISI increased their price target on shares of Align Technology from $165.00 to $200.00 and gave the company an “outperform” rating in a research report on Thursday, May 1st. Hsbc Global Res lowered Align Technology from a “strong-buy” rating to a “hold” rating in a research report on Friday, April 25th. Morgan Stanley cut their price objective 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. Wells Fargo & Company decreased their target price on Align Technology from $255.00 to $246.00 and set an “overweight” rating for the company in a report on Thursday, May 1st. Finally, UBS Group cut their price target on shares of Align Technology from $240.00 to $215.00 and set a “neutral” rating on the stock in a report on Thursday, April 24th. One research analyst has rated the stock with a sell rating, four have given a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target 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.