Activist investor Elliott Investment Management has reportedly taken a sizable position in Align Technology Inc. (NASDAQ:ALGN), signaling potential pressure on the Invisalign maker to revive its lagging stock performance.

The fund is expected to push for strategic measures aimed at boosting shareholder value as the company navigates weaker demand following its pandemic-era peak.

Elliott Eyes Strategic Changes For Align Technology

Citing people familiar with the matter, Bloomberg on Thursday reported that Elliott has accumulated one of the largest stakes in Align, positioning itself to influence the company’s corporate direction.

The activist firm plans to engage with management to evaluate options that could help lift the company's valuation.

The move comes as Align continues to grapple with slowing growth after a surge in demand during the COVID-19 pandemic.

Increased screen time on platforms like Zoom drove consumer interest in cosmetic dental procedures, but that momentum has since faded.

Align Technology Stock Struggles Since Pandemic Highs

Align's shares have declined sharply from their 2021 peak of $729.92, reflecting a normalization in demand for teeth-straightening products. Usage of Invisalign has softened as consumer spending patterns shifted post-pandemic, weighing on revenue growth and investor sentiment.

The company's prolonged stock weakness has made it a potential target for activist intervention, particularly as investors look for catalysts to unlock value.

Record Volume In Q4 2025

In February, Align said its Invisalign business hit record highs in the fourth quarter, with a historic surge in case submissions underscoring resilient global demand and helping drive stronger-than-expected earnings.

Revenues rose 5.3% year-over-year to $1.048 billion, beating the consensus of $1.033 billion, with foreign exchange boosting revenue by around $14.8 million.

This was aided by higher volumes from continued iTero Lumina scanner sales, representing around 86% of the full-system units.

Barclays Analyst Sees Recovery Potential

Barclays on Tuesday upgraded Align Technology from Equal-Weight to Overweight and maintained the price forecast of $200.

Citing Barclays analyst Glen Santangelo, Bloomberg highlighted that the stock could recover some of its lost ground, particularly as geopolitical concerns tied to its Israel manufacturing operations stabilize.

Barclays noted that Align currently trades at roughly 10 times its estimated 2027 EBITDA, below its historical averages. The firm expects the multiple to expand to around 12 times, compared with three- and five-year averages of 17 and 21, respectively.

Other Analysts Actions On Align Technology

  • HSBC upgraded Align Technology from Hold to Buy and raised the price forecast from $150 to $200.
  • Morgan Stanley maintained Align with an Equal-Weight rating and raised the price forecast from $154 to $169.
  • Wells Fargo maintained the company’s rating with an Overweight and raised the price forecast from $181 to $200.
  • Evercore ISI maintained Align’s Outperform rating and raised the price forecast from $180 to $200.
  • UBS reiterated Align’s Neutral rating and raised the price forecast from $175 to $185.
  • Piper Sandler maintained with an Overweight rating and raised the price forecast from $200 to $220.
  • Stifel maintained the Buy rating and raised the price forecast from $200 to $210.

ALGN Stock Price Activity: Align Technology shares were up 7.13% at $184.70 during premarket trading on Thursday, according to Benzinga Pro data.

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