Align Technology Inc. (ALGN) stock is nearly perfect except the valuation

The closing price of Align Technology Inc. (NASDAQ: ALGN) was $252.63 for the day, up 0.50% from the previous closing price of $251.38. In other words, the price has increased by $+1.25 from its previous closing price. On the day, 919287 shares were traded. ALGN stock price reached its highest trading level at $258.29 during the session, while it also had its lowest trading level at $250.08.

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Our analysis of ALGN’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 17.59 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 54.97. For the most recent quarter (mrq), Quick Ratio is recorded 1.20 and its Current Ratio is at 1.40. In the meantime, Its Debt-to-Equity ratio is 0.00 whereas as Long-Term Debt/Eq ratio is at 0.00.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Goldman on July 28, 2022, Downgraded its rating to Sell and sets its target price to $250 from $380 previously.

On January 31, 2022, UBS Upgraded its rating to Buy which previously was Neutral and also lowered its target price recommendation from $880 to $620.

On January 31, 2022, Morgan Stanley started tracking the stock assigning a Overweight rating and target price of $575.Morgan Stanley initiated its Overweight rating on January 31, 2022, with a $575 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Nov 02 when Thaler Warren S bought 1,050 shares for $191.21 per share. The transaction valued at 200,770 led to the insider holds 30,666 shares of the business.

Myong Anne bought 1,500 shares of ALGN for $285,385 on Nov 02. The Director now owns 4,794 shares after completing the transaction at $190.26 per share. On Nov 02, another insider, HOGAN JOSEPH M, who serves as the President and CEO of the company, bought 10,600 shares for $188.58 each. As a result, the insider paid 1,998,987 and bolstered with 185,401 shares of the company.

Valuation Measures:

As of this moment, Align’s Price-to-Earnings (P/E) ratio for their current fiscal year is 39.11, and their Forward P/E ratio for the next fiscal year is 32.78. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.90. For the stock, the TTM Price-to-Sale (P/S) ratio is 4.97 while its Price-to-Book (P/B) ratio in mrq is 5.34.

Stock Price History:

Over the past 52 weeks, ALGN has reached a high of $552.00, while it has fallen to a 52-week low of $172.05. The 50-Day Moving Average of the stock is 207.93, while the 200-Day Moving Average is calculated to be 250.38.

Shares Statistics:

ALGN traded an average of 1.10M shares per day over the past three months and 987.11k shares per day over the past ten days. A total of 78.09M shares are outstanding, with a floating share count of 73.17M. Insiders hold about 0.30% of the company’s shares, while institutions hold 89.30% stake in the company. Shares short for ALGN as of Oct 13, 2022 were 2.33M with a Short Ratio of 1.75M, compared to 2.07M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.99% and a Short% of Float of 3.00%.

Earnings Estimates

The firm’s stock currently is rated by 9 analysts. On average, analysts expect EPS of $1.67 for the current quarter, with a high estimate of $2.36 and a low estimate of $1.35, while EPS last year was $2.83. The consensus estimate for the next quarter is $1.95, with high estimates of $2.54 and low estimates of $1.69.

Analysts are recommending an EPS of between $8.65 and $6.85 for the fiscal current year, implying an average EPS of $7.37. EPS for the following year is $8.38, with 12 analysts recommending between $10.19 and $7.15.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 10 analysts. It ranges from a high estimate of $1.04B to a low estimate of $866.88M. As of the current estimate, Align Technology Inc.’s year-ago sales were $1.03B, an estimated decrease of -10.30% from the year-ago figure. For the next quarter, 7 analysts are estimating revenue of $905.26M, a decrease of -7.00% over than the figure of -$10.30% in the same quarter last year. There is a high estimate of $1.04B for the next quarter, whereas the lowest estimate is $833.92M.

A total of 13 analysts have provided revenue estimates for ALGN’s current fiscal year. The highest revenue estimate was $4.16B, while the lowest revenue estimate was $3.7B, resulting in an average revenue estimate of $3.81B. In the same quarter a year ago, actual revenue was $3.95B, down -3.70% from the average estimate. Based on 13 analysts’ estimates, the company’s revenue will be $3.92B in the next fiscal year. The high estimate is $4.58B and the low estimate is $3.4B. The average revenue growth estimate for next year is up 2.90% from the average revenue estimate for this year.