Stock shares of Align Technology dipped by 20.3 percent in April. A report revealed that the stock has been underperforming since January due to the loss of investor confidence caused by the pandemic. The business was hit hardest in China and disrupted all other business activities of the company worldwide.
According to the Motley Fool, Align Technology released an update on its revenue in China. The update showed that investors of Alight Technology were losing faith in its ability to survive through the pandemic. The company's stock increased by 30 percent since March 23, but investors' trust continues to fall.
The report claimed that the lessening investor confidence was understandable and that it adversely affected the revenue generation of the company. It was also revealed that there was no indication as to when the situation would improve for Align Technology despite the company being demonstrated as achieving consistent long-term revenue growth in the last decade.
At present, it holds 869 million USD in cash, cash equivalents, and marketable securities. It also only has 37 million USD in long-term debt giving it a strong position in the market. However, the report indicated that it remains uncertain as to whether Align Technology could brave the pandemic storm and continue its future growth upon resumption of normal business activity.
Amounting to eight percent of its total yields worldwide, the company expected a turnabout of 30 to 25 million USD on revenues for the first quarter of 2020. However, last March 18, the company gave a second update on its status during the pandemic. The stock was then down by 47 percent from its 52-week highs even after it recovered from the adverse effects of the pandemic in recent days.
In other news, Reuters reported that Align Technology Inc. revealed that its chief executive officer (CEO) Joseph Hogan's 2019 total compensation was set at 18.3 million USD against 41.8 million USD in 2018. The Securities and Exchange Commission filing showed that in 2019, the CEO to median employee pay ratio was at 1,328.
Last week, the company announced the completion of its buyout of exocad Global Holdings GmbH, a privately-held company in the dental computer-aided, design/computer-aided manufacturing (CAD/CAM) software market. According to Yahoo! Finance, the agreement was initially completed by March 4, 2020. However, the acquisition expanded the company's digital platform's reach by accumulating technology that would enable its ortho-restorative and comprehensive dentistry market.
The acquisition was perceived to strengthen the CAD/CAM services of Align Technology's scanner and services business sector globally.
