Does Align Technology (ALGN) Have a Long Runway for Growth?

·2 min read

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Contrarian Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 8.78% net compared to a 7.43% return for the Russell 2500 Index. Furthermore, the fund underperformed its secondary benchmark, the Russell 2500 Value Index, which returned 9.21%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Meridian Contrarian Fund highlighted stocks like Align Technology, Inc. (NASDAQ:ALGN) in its Q4 2022 investor letter. Headquartered in Tempe, Arizona, Align Technology, Inc. (NASDAQ:ALGN) is a medical device company. On March 23, 2023, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $311.48 per share. One-month return of Align Technology, Inc. (NASDAQ:ALGN) was 1.70%, and its shares lost 27.64% of their value over the last 52 weeks. Align Technology, Inc. (NASDAQ:ALGN) has a market capitalization of $23.863 billion.

Meridian Contrarian Fund made the following comment about Align Technology, Inc. (NASDAQ:ALGN) in its Q4 2022 investor letter:

"Align Technology, Inc. (NASDAQ:ALGN), is a leader in the orthodontic industry that pioneered the clear aligner segment with its well-known Invisalign ™ product. Pandemic-related disruptions to earnings and the impact of tough foreign exchange rates on Align’s significant international business pushed the stock’s valuation to what we believed was an attractive level. We believe the company remains an industry leader and that clear aligners, which hold an industry penetration rate of roughly 15%, have a long runway for growth, so we initiated a position during the quarter."

Align Technology, Inc. (NASDAQ:ALGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Align Technology, Inc. (NASDAQ:ALGN) at the end of the fourth quarter which was 38 in the previous quarter.

We discussed Align Technology, Inc. (NASDAQ:ALGN) in another article and shared the list of best short-term stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.