Align Technology (ALGN) Fell on Missed Street Expectations

The Ithaka Group, an investment advisory firm, released the “Ithaka US Growth Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. After a difficult 2022, most major market indices rebounded in 2023 with a 42.7% gain for the Russell 1000 Growth (R1G), the strongest performance in about 25 years. In the strong market, the strategy outperformed by rising 18.4% vs the R1G rising 14.2%. The outperformance was entirely due to stock selection, with a slight benefit from sector allocation. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Ithaka US Growth Strategy featured stocks such as Align Technology, Inc. (NASDAQ:ALGN) in the fourth quarter 2023 investor letter. Headquartered in Tempe, Arizona, Align Technology, Inc. (NASDAQ:ALGN) designs and manufactures orthodontics, restorative, and aesthetic dentistry products. On February 8, 2024, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $295.00 per share. One-month return of Align Technology, Inc. (NASDAQ:ALGN) was 8.60%, and its shares lost 6.59% of their value over the last 52 weeks. Align Technology, Inc. (NASDAQ:ALGN) has a market capitalization of $22.594 billion.

Ithaka US Growth Strategy stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its fourth quarter 2023 investor letter:

“Align Technology, Inc. (NASDAQ:ALGN) is a global medical device company engaged in the design, manufacture and marketing of Invisalign clear aligners for the treatment of malocclusions, or misalignment of teeth, by orthodontists and general dental practitioners. Malocclusion is one of the most prevalent clinical dental conditions, affecting billions of people around the world, with tens of millions of people choosing to get treatment each year. All of Align’s underperformance stemmed from its weak 3Q23 earnings announcement, where the company missed Street estimates on both the top and bottom line, while also providing cautious commentary regarding the desire for the global consumer to initiate Invisalign treatment.”

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Align Technology, Inc. (NASDAQ:ALGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Align Technology, Inc. (NASDAQ:ALGN) at the end of third quarter which was 35 in the previous quarter.

We discussed Align Technology, Inc. (NASDAQ:ALGN) in another article and shared Giverny Capital Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.