Technology stock

Align Technology stock tumbles to accompany S&P 500 declines after Stifel analyst warns of ‘soft’ quarterly results

Shares of Align Technology Inc. ALGN,
-2.67%
fell 6.1% to a four-month low in afternoon trade on Wednesday, enough to pace the SPX of the S&P 500,
+0.52%
declines, after Stifel Nicolaus analyst Jonathan Block warned investors that his research suggests volumes have deteriorated in recent months. Block’s warning comes two weeks before the cosmetic dentistry products company is due to release its third-quarter results, after the October 27 closing bell. Block said its past “quarterly due diligence” was bullish, leading it to take aggressive positions ahead of the previous four quarterly reports, all of which beat earnings and revenue expectations. “However, our 3Q21 checks came back smoothly and as a result we view the risk/reward for upcoming printing differently than in recent quarters,” Block wrote in a note to clients. Meanwhile, he reiterated the buy rating he’s had on the stock for at least the past three years and kept his price target at $750. FactSet’s current consensus for earnings per share of $2.59 in the third quarter is the same as at the start of the third quarter, while the revenue consensus of $976.9 million fell from $956.1 million. dollars. The stock has lost 8.4% over the past three months, while the share of rival SmileDirectClub Inc. SDC,
-5.31%
fell 20.0% and the S&P 500 fell 0.1%.