The stock of Align Technology Inc. (NASDAQ:ALGN) increased by $5.65 on Friday to finish at $352.88, up 1.63 percent. The last five days have seen an average of 482,220 shares of common stock traded. 16 times new highs were reached in the current year, with a gain of $141.98. The average number of shares traded over the last 20 days was 939,740, while the average volume over the last 50 days totaled 759,466.
ALGN stock dropped -3.99% since last month. On 07/25/23, the company’s shares reached a one-month low of $324.89. The stock touched a high of $413.20 on 07/27/23, after rallying from a low of $172.05 in 52 weeks. The price of ALGN stock has risen by 67.32% or $141.98 this year, reaching a new high 16 times. Still, the stock price is down -14.60% from the 52-week high.
Insider Transactions
ALGN stock investors should be aware that Align Technology Inc. (ALGN) stock had its last reported insider trading activity 76 days ago on May 30. On May 30, Director Dallas Kevin J acquired 7,000 shares at $285.26 each. This transaction resulted in the insider spending $1,996,800. On Feb 08, HOGAN JOSEPH M added 2,928 shares at a price of US$341.50. After the transaction, the insider now owns 188,417 shares. EVP & Chief Financial Officer Morici John had earlier bought 587 shares on Feb 08 for $341.84 a share. The transaction was completed for $200,660.
Valuation Metrics
Align Technology Inc. (ALGN) has a trailing price-to-earnings (P/E) ratio of 86.85. Beta for the stock is 1.64. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 7.11, the price-to-book (PB) ratio of 7.42, and the price-to-cash flow ratio of 43.45.
Financial Health
For the three months ended June 29, Align Technology Inc.’s quick ratio was 1.00, while its current ratio was 1.20, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 69.90% percent. Align Technology Inc.’s EBITDA margin for the year ended June 29 was 21.70%, whereas its operating margin stood at 15.00% for the same period. Based on annual data, it had gross profit of $2.63 billion and revenue of $3.73 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ALGN’s return on assets (ROA) during the last 12 months has been 5.30%. There was a 11.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 8.70%.
Earnings Surprise
According to Align Technology Inc.’s quarterly financial report for the quarter that ended June 29, it had $55.81 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.0 billion, while revenues rose by 3.2% to $943.15 million. It was predicted that Align Technology Inc.’s quarterly earnings would be $2.22, but it ended up being $2.03, beating the consensus by 9.40%. EBITDA was $207.75 million for the quarter. At the end of Align Technology Inc.’s most recent quarter ended June 29, its liabilities totaled 2.51 billion, while its total debt was $133.42 million. Equity owned by shareholders amounts to $76.53 million.
Technical Picture
Here’s a quick look at Align Technology Inc.’s (ALGN) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 46.15%, suggesting the stock is Neutral, with a 16.34% historical volatility rate.
The stochastic %K and %D were 29.53% and 32.52% respectively, while the average true range (ATR) was 11.99. Based on the 14-day stochastic reading of 31.70%, the RSI (14) reading is 49.93%. On the 9-day MACD Oscillator, the stock is at -9.43, and the 14-day reading is at -10.51.
Analyst Ratings
In its most recent analyst report, Goldman raised its rating on Align Technology Inc. (NASDAQ: ALGN) to a Neutral. Prior to this, analysts firm rated the stock as a Sell. Analysts have assigned Align Technology Inc. (ALGN) an Overweight rating. ALGN is a stock that is recommended for selling by 0 brokerage firms, while 5 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 7 others recommend it as a buy.
What is ALGN’s price target for the next 12 months?
The current consensus forecast for the stock is between $270.00 and $440.00, with a median target price of $400.00. In analyzing these forecasts, the average price target given by analysts for Align Technology Inc. (ALGN) is $389.55.
