TEMPE, Ariz. & NEW YORK - Align Technology, Inc. (NASDAQ:ALGN), a prominent player in the medical device sector known for its Invisalign clear aligners, iTero intraoral scanners, and exocad CAD/CAM software, has announced the authorization of a new stock repurchase program by its Board of Directors. This new initiative allows Align to buy back up to $1.0 billion of its common stock over the coming three years.
The announcement comes on the heels of the completion of Align’s previous $1 billion stock repurchase program, which concluded on May 1, 2025. This move is seen as a testament to the company’s robust financial position and its ability to generate substantial cash flow. InvestingPro analysis confirms this strength, showing a healthy financial score of 2.75 (GOOD), with particularly strong profitability metrics and impressive gross margins of 70%. John Morici, CFO and executive vice president of global finance at Align, stated that this decision aligns with the company’s strategy to enhance shareholder value while also investing in strategic growth areas.
As of March 31, 2025, Align reported having approximately 73.1 million shares outstanding and a cash and cash equivalents balance of $873.0 million. The company has a history of over 28 years in the industry and has provided the Invisalign System to over 20.1 million patients globally. Align’s technologies are considered foundational for advancing digital orthodontic and restorative workflows, aiming to improve outcomes for patients and increase efficiency for practitioners.
This repurchase program reflects Align’s confidence in its long-term growth trajectory and its ability to leverage opportunities in its target markets. The company’s leadership believes that returning capital to shareholders through stock repurchases is a key component of their capital allocation strategy. While trading at a P/E ratio of 32.57, InvestingPro analysis suggests the stock may be undervalued relative to its Fair Value, with 8 additional exclusive ProTips available to subscribers through the comprehensive Pro Research Report.
The information about Align’s new stock repurchase program is based on a press release statement. It is important to note that forward-looking statements, such as expectations about future events or results, are based on information currently available and may be subject to risks, uncertainties, and changes. Align has emphasized that actual results could differ from those projected in any forward-looking statements due to various risk factors, which are detailed in periodic reports filed with the Securities and Exchange Commission.
In other recent news, Align Technology Inc. reported a strong start to 2025, with its first-quarter earnings exceeding expectations. The company achieved an earnings per share (EPS) of $2.13, surpassing the projected $2.00, and reported revenues of $979.3 million, slightly above the anticipated $977.54 million. Despite a 1.8% year-over-year decline in total revenue, Align Technology saw growth in its clear aligner segment, highlighting its resilience in challenging market conditions. The company also announced projections for the second quarter of 2025, expecting revenues to range between $1,050 million and $1,070 million, with anticipated growth in clear aligner volume. Analysts from firms like Stifel noted the robust performance, particularly in the teen segment, which saw double-digit growth. Align Technology’s strategic focus on innovation and market expansion, including new product launches such as the Invisalign system with mandibular advancement, underscores its commitment to maintaining a competitive edge. The company is also managing potential risks related to tariffs and supply chain disruptions, with plans to mitigate impacts through strategic adjustments.
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