Is Align Technology (ALGN) A Smart Long-Term Buy?

Carillon Tower Advisers, an investment management firm, published its fourth quarter 2020 “Carillon Eagle Mid Cap Growth Fund” investor letter – a copy of which can be downloaded here. In the letter, the fund talked about their best and worst securities, together with their outlook for this year from an investment perspective. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Carillon Tower Advisers, in their Q4 2020 investor letter, mentioned Align Technology, Inc. (NASDAQ: ALGN) and emphasized their views on the company. Align Technology, Inc. is a San Jose, California-based orthodontics company that currently has a $40.1 billion market capitalization. Since the beginning of the year, ALGN delivered a -5.28% return, while its 12-month gains are decently up by 175.57%. As of March 24, 2021, the stock closed at $506.17 per share.

Here is what Carillon Tower Advisers has to say about Align Technology, Inc. in their Q4 2020 investor letter:

“Align Technology designs, manufactures, and markets a clear and removable alternative to traditional braces. The firm’s shares performed exceptionally well after posting quarterly earnings results that were significantly higher than market expectations. The company saw an increase in demand for its clear aligners largely as a result of the pent-up disposable income many consumers have as a result of the pandemic. Additionally, it is seeing an acceleration in the rate at which doctors are willing to transition their practices toward transformational digital technologies.”


Our calculations show that Align Technology, Inc. (NASDAQ: ALGN) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Align Technology, Inc. was in 50 hedge fund portfolios, compared to 47 funds in the third quarter. ALGN delivered a -3.59% return in the past 3 months.