Atlantic Union Bankshares Corp significantly increased its investment in Align Technology, Inc. during the third quarter of 2023, raising its stake by an impressive 4,675.0%. According to a recent filing with the Securities and Exchange Commission, the bank now holds 5,730 shares of the medical equipment provider after acquiring an additional 5,610 shares during the quarter. As of the latest report, these holdings are valued at approximately $718,000.
This strategic move comes as several other institutional investors have also adjusted their positions in Align Technology. Notably, Ninety One UK Ltd raised its stake by 18.3%, increasing its ownership to 2,267,192 shares, which are valued at around $283.9 million. Similarly, Federated Hermes Inc. expanded its shareholding by 31.0%, now owning 926,733 shares valued at $175.5 million.
Other institutional players include Disciplined Growth Investors Inc., which increased its position by 0.9%, and Norges Bank, which acquired a new stake worth approximately $155.3 million. Collectively, institutional investors and hedge funds own 88.43% of Align Technology’s stock.
Align Technology’s stock opened at $161.30 on Thursday, with a one-year range between $122.00 and $232.20. The company’s market capitalization stands at $11.57 billion, with a price-to-earnings ratio of 31.26 and a beta of 1.84. The recent performance reflects a 5.3% year-over-year revenue increase, amounting to $1.05 billion for the quarter, surpassing analyst estimates.
On February 4, 2024, Align Technology announced its quarterly earnings, reporting $3.29 earnings per share, exceeding the consensus estimate of $2.99 by $0.30. The company also noted a net margin of 9.50% and a return on equity of 13.96%. Analysts forecast that Align Technology will post $7.98 earnings per share for the current year.
Analyst Ratings and Market Outlook
Recent commentary from various brokerages indicates a range of opinions regarding Align Technology’s stock. Jefferies Financial Group raised its price objective from $140.00 to $155.00, while UBS Group lowered its target from $160.00 to $155.00, maintaining a “neutral” rating. Piper Sandler reiterated an “overweight” rating with an increased price objective of $200.00.
In contrast, Evercore ISI revised its price objective downward from $220.00 to $170.00, assigning an “outperform” rating. Currently, six analysts rate the stock as a “Buy,” while nine suggest holding onto shares, resulting in a consensus rating of “Hold” with an average target price of $176.82.
Company Overview
Founded in 1997 by Zia Chishti and Kelsey Wirth, Align Technology, Inc. is based in Tempe, Arizona. The company revolutionized orthodontics with the introduction of the Invisalign system, a series of clear, removable aligners that serve as an alternative to traditional braces. Align has since diversified its offerings to include intraoral scanners and CAD/CAM software, enhancing the digital dentistry landscape.
As Align Technology continues to show strong demand for its dental products, particularly the Invisalign system and related digital solutions, analysts remain optimistic about its potential for growth in the upcoming quarters.