Align Technology (NSDQ:ALGN) today announced that it has entered into a new accelerated share buyback agreement worth up to $200 million.
Align, based in Tempe, Ariz., may repurchase $200 million in common stock under the $1 billion share buyback program announced in May last year. CEO Joe Hogan also intends to buy $2 million worth of Align common stock.
Under the accelerated share buyback program, Align will receive an initial delivery of approximately 552,000 shares. The number of shares to be repurchased will also be based on the volume-weighted average trading price of Align’s stock over the term of the accelerated share repurchase and will be completed around July 26 and will be funded with cash from Align. .
“We are pleased to announce an accelerated $200 million share buyback program, which reflects the strength of our balance sheet and cash flow generation, as well as the continued confidence of management and the Board of administration in our ability to take advantage of major market opportunities. Returning capital to our shareholders through share buyback programs while simultaneously investing in our strategic growth engines is consistent with our capital allocation strategy and our commitment to increasing shareholder value,” said CFO John Morici in a press release.
The share buyback agreement comes after Align Technology missed earnings and revenue estimates in its fiscal first quarter, when it posted revenue of $973.22 million.
“Over the past 25 years, we have transformed the orthodontic industry with a passion for innovation as we have evolved from leading the evolution from digital device to digital platform. are still in the early stages of transforming the orthodontic market. We remain confident in the huge underpenetrated market, our technology and industry leadership, and our ability to execute and progress towards our long-term model goal of 20-30% revenue growth We look forward to sharing more milestones over the next 25 years – as we continue to lead the digital evolution of orthodontics and dentistry to deliver great results in treatment and treatment experiences to physicians and patients around the world.
ALGN shares rose 4.8% to $303.83 apiece in afternoon trading. However, shares of the company are down 32.3% overall since April 4.