Digging Through Align Technology, Inc. (ALGN) Fundamentals

On Wednesday, shares of Align Technology, Inc. (NASDAQ:ALGN) marked $274.10 per share versus a previous $287.61 closing price. With having a -4.70% loss, an insight into the fundamental values of Align Technology, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. ALGN showed a fall of -1.77% within its YTD performance, with highs and lows between $169.84 – $334.64 during the period of 52 weeks, compared to the simple moving average of 7.74% in the period of the last 200 days.

Wolfe Research equity researchers changed the status of Align Technology, Inc. (NASDAQ: ALGN) shares from “Peer Perform” to a “Outperform” rating in the report published on January 9th, 2020. Other analysts, including BofA/Merrill, also published their reports on ALGN shares. BofA/Merrill repeated the rating from the previous report, marking ALGN under “Neutral” rating, in the report published on October 24th, 2019. Additionally, ALGN shares got another “Neutral” rating from Guggenheim. On July 25th, 2019, Evercore ISI Downgrade an In-line rating and increased its price target from $340 to $220. On the other hand, Wolfe Research Initiated the “Peer Perform” rating for ALGN shares, as published in the report on May 30th, 2019. Guggenheim seems to be going bullish on the price of ALGN shares, based on the price prediction for ALGN. Another “Neutral” rating came from UBS, providing a prediction for price target according to the report published in February 14th, 2019.

Align Technology, Inc. (ALGN) Analysis

The present dividend yield for ALGN owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Align Technology, Inc., the company needs to provide a healthy cash flow, currently at the value of 35.86. In addition, the growth of sales from quarter to quarter is recording 20.20%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Align Technology, Inc. (ALGN) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 32.30% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.60 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while ALGN is currently recording an average of 765.96K in volumes. The volatility of the stock on monthly basis is set at 2.39%, while the weekly volatility levels are marked at 3.94%with -4.16% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $292.47, indicating growth from the present price of $274.10, which can represent yet another valuable research and analysis points that can help you decide whether to invest in ALGN or pass.

What to Look for When Analyzing Align Technology, Inc. Shares?

Align Technology, Inc. (ALGN) is based in the USA and it represents one of the well-known company operating with Healthcare sector. If you wish to compare ALGN shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 52.65 for Align Technology, Inc., while the value 42.24 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 5.21 is supported by the yearly ESP growth of 27.50%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.50%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 86.20% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in ALGN Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in ALGN in the recent period. That is how Edgewood Management LLC now has an increase position in ALGN by 53.04% in the first quarter, owning 4.71 million shares of ALGN stocks, with the value of $1.32 billion after the purchase of an additional 1,633,957 shares during the last quarter. In the meanwhile, BlackRock Fund Advisors also increased their stake in ALGN shares changed 0.75% in the first quarter, which means that the company now owns 3.98 million shares of company, all valued at $1.11 billion after the acquisition of additional 29,574 shares during the last quarter.

SSgA Funds Management, Inc. acquired a new position in Align Technology, Inc. during the first quarter, with the value of $858.28 million, and Polen Capital Management LLC increased their stake in the company’s shares by 6.81% in the first quarter, now owning 177,178 shares valued at $775.87 million after the acquisition of the additional 2.78 million shares during the last quarter. In the end, Hillhouse Capital Advisors Ltd. increased their position by 3.75% during the first quarter, now owning 1.57 million ALGN shares, now holding the value of $436.84 million in ALGN with the purchase of the additional 1,565,500 shares during the period of the last quarter. At the present, 86.20% of ALGN shares are in the ownership of institutional investors.