Align Technology announces $250M accelerated share buybacks
Melpomenem

Align Technology (NASDAQ:ALGN) dropped in the pre-market trading Monday after announcing a new accelerated share buyback agreement with Citibank to repurchase $250.0M of the companyâs common stock.
The deal is in line with Alignâs (ALGN) $1B stock repurchase program, announced in 2021, and comes days after the companyâs Q4 2022 results which exceeded Street forecasts and sent its shares sharply higher last week.
Per the terms, Align (ALGN) will initially receive ~580.0K company shares as part of the transactions expected to close by about Apr. 26 this year. The final amounts to be repurchased will depend on the companyâs volume-weighted average stock price during the term of the agreement minus a discount.
The company expects to fund the buybacks with its cash on hand which stood at $1.0B in terms of cash, cash equivalents, and marketable securities as of 2022 year-end.
Additionally, Align (ALGN) announced that its chief executive officer Joe Hogan and chief financial officer, John Morici intend to buy $1.0M and $0.2M shares of the company stock, respectively.
Seeking Alpha contributor Gytis Zizys wrote a bearish thesis on Align (ALGN) recently, arguing that âeven with the recent drop in share price, the financials say it is a strong sell.â