Align Technology to Buyback Shares Worth $1B

·1 min read

Medical device company Align Technology (ALGN) has announced a new share repurchase program of up to $1 billion. Under the program, Align will buy back shares over a period of three years.

The company’s previous $600 million share repurchase program was announced in May 2018. To complete this program, Align has entered into an accelerated $100 million repurchase transaction on April 30.

Align Technology CFO John Morici said, “We’re pleased to announce a new $1.0 billion stock repurchase program, which reflects the strength of our balance sheet and cash flow generation, as well as management’s and the Board’s continued confidence in our ability to capitalize on the large market opportunities in our target markets and trajectory for growth.” (See Align Technology stock analysis on TipRanks)

At the end of March 2021, Align had approximately 79.1 million outstanding shares and $1.1 billion in cash at hand.

On April 29, Leerink Partners analyst Richard Newitter reiterated a Buy rating on the stock and increased the price target to $770 (39.1% upside potential) from $690.

Newitter highlighted Align’s growth acceleration in the first quarter which drove revenue and earnings outperformance as the reason for an upward price target revision.

Consensus among analysts is that Align Technology is a Strong Buy based on 7 Buys and 2 Holds. The average analyst price target of $723.67 implies 30.7% upside potential. Shares have gained 168.6% over the past year.

Related News:
Tesla Autopilot Software Update Coming Soon, Stock Down 4.42%
U.S. Navy Taps Lockheed Martin And IFS For Digital Transformation
Electronic Arts Delivers Impressive FY21 Results, Announces Dividend

More recent articles from Smarter Analyst:

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting