Align Technology (Nasdaq:ALGN) announced today that it entered into an agreement to repurchase $250 million of its common stock.
The company also executed a $1 billion stock repurchase agreement announced in May 2021. Align took care of one buyback in October 2022 through a $200 million repurchase with Goldman Sachs.
Align’s board officially approved the current program in January 2023. It repurchased another $250 million in February of this year with Citibank.
Align’s latest agreement, another accelerated deal, also took place with Citibank. Like with the February repurchase, President and CEO Joe Hogan agreed to personally purchase $1.0 million of Align’s common stock.
The latest stock repurchase program operates in accordance with SEC guidelines, the company said in a news release. As of June 30, 2023, Align had approximately $76.5 million shares outstanding and $1 billion in cash, equivalents and securities.
Under the terms of the agreement, Align receives an initial delivery of about 1 million shares. The final number depends on the company’s volume-weighted average stock price during the term of the agreement. It expects to complete the transaction by around Jan. 30, 2024, funding it with cash on hand.
“We have an enormous opportunity in a vastly underpenetrated market to continue driving the adoption of digital orthodontics and restorative dentistry with the Invisalign System, the most trusted brand in the orthodontic industry globally,” said Hogan. “This latest $250 million ASR reflects our continued confidence in the long-term value of Align and our commitment to increasing shareholder value while balancing investments to drive growth as we transform the orthodontic industry.”
