Align Technology Inc. (ALGN) experienced a slight rebound of 1% in premarket trading on Friday, following a significant drop in its stock price. The renowned maker of Invisalign orthodontic products has unveiled a new $250 million accelerated stock repurchase (ASR) program as part of its ongoing efforts to boost shareholder value.
Steady Recovery after Recent Setback
Align Technology's stock had fallen by a staggering 24.9% in the previous trading session, marking the largest one-day selloff since July 2019. This decline came on the heels of a disappointing earnings report, causing the stock to reach its lowest level since December 8. However, the newly announced ASR program aims to instill confidence among investors and restore market stability.
Demonstrating Commitment to Shareholders
Furthermore, Chief Executive Joe Hogan expressed his personal interest in aligning with the company's financial objectives by purchasing $1 million worth of Align's stock using his own funds. This additional investment by the CEO serves as a symbol of leadership and further augments investor confidence.
Recent Market Performance
Over the past three months, Align Technology's stock has experienced a notable depreciation of 50.5%, significantly underperforming the broader S&P 500 index, which has declined by 8.8% during the same period.
In summary, Align Technology's new $250 million ASR program represents a strategic move to counter recent setbacks and reinforce investor trust. With Joe Hogan personally investing in the stock, it is evident that the company's leadership is fully committed to generating long-term value for shareholders.