Elliott Takes Large Stake in Align Technology, Shares Jump 5%
Elliott Investment Management has built a significant stake in Align Technology, becoming one of the clear-aligner maker’s largest shareholders and preparing to push for strategic measures to raise its stock price. Align’s shares, down from a $729.92 2021 peak to $172.41 with a $12.3 billion market cap, surged 5% pre-market on the news.
1. Elliott Builds Major Position
Elliott Investment Management has acquired a substantial holding in Align Technology, making it one of the dental device maker’s top investors and signaling intent to engage management on initiatives aimed at boosting shareholder returns.
2. Shares Rise on Activist Move
Align’s stock, which closed at $172.41 for a $12.3 billion market capitalization, jumped as much as 5% in U.S. pre-market trading following reports of Elliott’s investment and potential push for strategic reviews.
3. Valuation Multiples Below Historical Averages
After peaking at $729.92 in 2021, Align’s shares now trade at approximately 10 times estimated 2027 EBITDA, below its three- to five-year historical averages of 17 to 21 times.