RGA Investment Advisors on Align Technology (ALGN): “The Future Here is Bright”

Investment management company RGA Investment Advisors recently released its second-quarter 2022 investor letter. A copy of the same can be downloaded here. The fund is not happy with its portfolio’s relative performance in the second quarter. High inflation and actions of the Federal Reserve to manage the inflation affected the market’s performance in the second quarter. You can check the top 5 holdings of the fund to know its best picks in 2022.

RGA Investment Advisors discussed stocks like Align Technology, Inc. (NASDAQ:ALGN) in the second quarter investor letter. Align Technology, Inc. (NASDAQ:ALGN) is a medical device company headquartered in Tempe, Arizona. On August 22, 2022, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $256.05 per share. One-month return of Align Technology, Inc. (NASDAQ:ALGN) was -1.58% and its shares lost 63.29% of their value over the last 52 weeks. Align Technology, Inc. (NASDAQ:ALGN) has a market capitalization of $20 billion.

Here is what RGA Investment Advisors specifically said about Align Technology, Inc. (NASDAQ:ALGN):

“Align Technology, Inc. (NASDAQ:ALGN)– we have followed Align with admiration for years. The company has consistently executed its combination of profitable growth, while disrupting the orthodontics industry and enhancing its offering beyond the pure product. Specifically, Align’s Invisalign is by far the best clear aligner and the company has used its offering to build what is essentially the “operating system” for an orthodontics practice. COVID Stimulus led to a surge in demand from which there is now a hangover. Consequently Align is at its lowest valuation multiple in a decade (sub 15x EV/EBITDA); lower than when fears of a patent expiration led some to believe emergent competition could derail Align’s momentum (it did not). Align is more “discretionary” than the typical healthcare company, because their core clientele are adult patients with orthodontic problems. This means there is some portion of cyclicality; however, the really long-term opportunity is capturing the core teenager orthodontic industry, which remains the vast majority (over 80%) treated with metal braces. It is inherently more challenging to drive adoption in this demographic considering invisible aligners are more expensive and require patient compliance, though we think the generation growing up seeing themselves on Instagram and TikTok will inevitably steer towards clear, where Align is dominant. As they say, the future here is bright.”

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Align Technology, Inc. (NASDAQ:ALGN) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, Align Technology, Inc. (NASDAQ:ALGN) was held by 33 hedge fund portfolios at the end of the first quarter, which was 45 in the previous quarter.

We discussed Align Technology, Inc. (NASDAQ:ALGN) in another article and shared Artko Capital’s views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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