Align Technology Beats Earnings Estimates

Hedge fund sentiment towards Align Technology changed recently.

By Lucky 33

Align Technology Beats Earnings Estimates

On Friday, Oct. 1, Align Technology announced that its senior leadership team will be reporting its third quarter of 2021 financial results on Wednesday, Oct. 27, after the close of the markets. ALGN has outperformed earnings expectations on all four of its most recent earnings reports.

Hedge fund sentiment towards Align Technology changed recently. Heading into the third quarter of 2021, a total of 57 of the hedge funds held long positions in this stock, a change of 16% from one quarter earlier. There were a total of 41 hedge funds with a bullish position in ALGN a year ago. With the smart money's sentiment swirling, there exists an 'upper' tier of key hedge fund managers who were adding to their stakes significantly or already accumulated large positions.

Align stock has increased nearly 107% year-over-year, with underlying support at the 120-day moving average capturing its pullback from its Sept. 23 all-time high of $737.45. The stock is off 1.5% at $652.41 today, but still boasts a 22% lead for the year.

Align technology ALGN Stock Earnings Estimate

For Q3 of 2020, Align Technology beat analysts’ estimates by a margin of $1.61, reporting an EPS of $2.25. For Q4 of 2020, Align's EPS increased to $2.61, beating expectations by a margin of $0.47. For Q1 of 2021, ALGN posted a decrease in earnings, dropping to $2.49 per share. The medical device company still beat estimates by a margin of $0.47. For Q2 of 2021, Align Technology reported an EPS of $3.04 and beat expectations by a margin of $0.51. Analysts have ALGN's EPS coming in at $2.60 for the upcoming earnings report.

Align stock's estimated forward price-earnings indicates an expected increase in earnings, which is in line with the medical device company’s growth over the past year. Since fiscal 2017, Align Technology's revenues have increased 136% and its net income is up 202%. Overall, Align Technology’s strong growth rate has served as a catalyst to push its valuation up so high. 

Align Technology › ALGN › is a global medical device company and manufacturer of clear aligners used in orthodontics. ALGN manufactures the aligners in Juarez, Mexico & its scanners in Israel & China. Align designs, manufactures, & offers its Invisalign system of clear aligners, iTero intraoral scanners & services, & exocad CAD/CAM software. ALGN has also helped dentists treat approximately 10.9 million patients with their Invisalign system.

Align technology ALGN Stock Earnings Estimate

ALGN has outperformed the market in the last year with a return of ↑ 109.8%, while the SPY ETF gained ↑ 31.3%. In the last 3 month period, ALGN beat the market returning ↑ 9.6%, while SPY returned ↑ 1.1%. However, in the most recent 2 weeks ALGN has underperformed the stock market by returning -5.5%, while SPY returned -3.5%.

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