What Happened?
Shares of dental technology company Align Technology (NASDAQ:ALGN) jumped 6.2% in the afternoon session after the company announced the commercial availability of its Invisalign System with mandibular advancement in the Philippines.
This new product was designed to correct specific jaw and teeth alignment issues in growing patients by simultaneously moving the lower jaw forward while straightening teeth, expanding the company's treatment portfolio. In other news, Align Technology also concluded an academic program roadshow across the Middle East to support digital orthodontic education. The stock's positive move came despite analysts at Evercore ISI lowering their price target on the shares to $170 from $220, though the firm did maintain its "Outperform" rating, suggesting investors focused more on the product news.
After the initial pop the shares cooled down to $150.32, up 4.7% from previous close.
Is now the time to buy Align Technology? Access our full analysis report here.
What Is The Market Telling Us
Align Technology’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 6.9% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Align Technology is down 27.9% since the beginning of the year, and at $150.32 per share, it is trading 37.5% below its 52-week high of $240.52 from November 2024. Investors who bought $1,000 worth of Align Technology’s shares 5 years ago would now be looking at an investment worth $317.33.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report.