Align Technology Inc. (NASDAQ: ALGN) stock fell -0.47% on Wednesday to $281.23 against a previous-day closing price of $282.55. With 0.75 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.83 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $284.02 whereas the lowest price it dropped to was $278.04. The 52-week range on ALGN shows that it touched its highest point at $368.87 and its lowest point at $172.05 during that stretch. It currently has a 1-year price target of $359.30. Beta for the stock currently stands at 1.59.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ALGN was down-trending over the past week, with a drop of -3.48%, but this was down by -20.00% over a month. Three-month performance dropped to -7.93% while six-month performance rose 46.76%. The stock gained 0.90% in the past year, while it has gained 33.35% so far this year. A look at the trailing 12-month EPS for ALGN yields 4.04 with Next year EPS estimates of 9.96. For the next quarter, that number is 2.03. This implies an EPS growth rate of -52.40% for this year and 19.95% for next year. EPS is expected to grow by 43.25% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 3.60%.
Float and Shares Shorts:
At present, 76.92 million ALGN shares are outstanding with a float of 73.17 million shares on hand for trading. On Apr 27, 2023, short shares totaled 2.31 million, which was 3.02% higher than short shares on Mar 30, 2023. In addition to Mr. Joseph M. Hogan as the firm’s Pres, CEO & Director, Mr. John F. Morici serves as its CFO & Exec. VP of Global Fin.
Through their ownership of 90.09% of ALGN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.60% of ALGN, in contrast to 35.40% held by mutual funds. Shares owned by individuals account for 29.08%. As the largest shareholder in ALGN with 10.55% of the stake, The Vanguard Group, Inc. holds 8,080,224 shares worth 8,080,224. A second-largest stockholder of ALGN, BlackRock Fund Advisors, holds 3,635,944 shares, controlling over 4.75% of the firm’s shares. Edgewood Management LLC is the third largest shareholder in ALGN, holding 3,383,436 shares or 4.42% stake. With a 3.01% stake in ALGN, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,306,026 shares are owned by the mutual fund manager. The Advisors Inner Circle – Edgewood, which owns about 2.36% of ALGN stock, is the second-largest Mutual Fund holder. It holds 1,810,020 shares valued at 588.8 million. Vanguard Mid Cap Index Fund holds 2.26% of the stake in ALGN, owning 1,732,436 shares worth 563.56 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, ALGN reported revenue of $969.55M and operating income of $188.20M. The EBITDA in the recently reported quarter was $188.20M and diluted EPS was $1.44.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ALGN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ALGN analysts setting a high price target of $420.00 and a low target of $225.00, the average target price over the next 12 months is $359.30. Based on these targets, ALGN could surge 49.34% to reach the target high and fall by -19.99% to reach the target low. Reaching the average price target will result in a growth of 27.76% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded ALGN stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 6 over the past year. The total number of shares bought during that period was 47,603 while 14,227 shares were sold.