The Channel Islands-based Ashburton Jersey Ltd. is the latest big investor to buy a stake in the San Jose-headquartered Align Technology, known for its orthodontic solutions, especially the Invisalign clear aligner system.
Ashburton Jersey Ltd., known for investing in mega-cap companies, has taken a new position in Align Technology ahead of the latter’s anticipated Q3 financial results, set for release on Oct. 23, its recent 13F filing with the U.S. Securities and Exchange Commission shows.
In the filing, Ashburton Jersey disclosed that it purchased 3,761 shares of Align Technology during the second quarter, valued at approximately $898,000. The U.S. financial outlet MarketBeat reported that this move follows other institutional investors increasing their holdings in the dental manufacturing company. For example, Cullen Frost Bankers Inc. increased its stake by 854.5 per cent in the second quarter, while Versant Capital Management Inc. raised its position by 547.1 per cent.
With estimated assets under management of $226 million, Ashburton Jersey’s decision to invest in Align is notable, given the fund’s focus on mega-cap companies with strong growth potential.
“Align Technology comprises about 0.4 per cent of Ashburton Jersey Ltd.’s portfolio, making the stock its 24th-biggest holding,” MarketBeat reported.
Clear aligners, CAD/CAM drive profits
Align Technology announced its Q2 2024 results this summer, showing total revenues of $1.03 billion, up 3.1 per cent sequentially and 2.6 per cent year-over-year. Its clear aligner business was one of the main drivers behind the increase, with a volume of 642,700 cases—up 6.2 per cent sequentially and 3.2 per cent year-over-year.
Clear aligner volume for teens increased 8.8 per cent sequentially and 8.0 per cent year-over-year, reaching 216,700 cases.
Meanwhile, Q2 2024 Imaging Systems and CAD/CAM Services revenues were $196.8 million, up 9.2 per cent sequentially and 16.1 per cent year-over-year. However, foreign exchange had an unfavourable impact on revenues, reducing them by approximately $2.1 million, or 1.0 per cent sequentially, and by $3.4 million, or 1.7 per cent, year-over-year.
As Align Technology, with a market capitalization of $17.74 billion (US), prepares to release its Q3 results, analysts and investors will be closely watching the company’s performance. Expectations are high that its investments in innovation and digital dentistry will fuel further growth.
(All figures in U.S. dollars. US$1 = $1.35)
