Align Technology (Nasdaq:ALGN) announced today that it entered into a new accelerated stock repurchase agreement with Citibank.
Tempe, Arizona-based Align agreed to repurchase $250 million of its common stock. It falls under its $1 billion stock repurchase agreement announced in May 2021. The company’s most recent buyback took place in October 2022 through a $200 million repurchase with Goldman Sachs.
In this agreement, two of the dental technology company’s executives personally agreed to buy significant amounts of common stock. President and CEO Joe Hogan intends to purchase $1 million. CFO and EVP of Global Finance John Morici plans to buy $200,000 in common stock.
Under the terms of the repurchase, Align initially received approximately 580,000 shares of common stock. The final number of shares depends on Align’s volume-weighted stock price during the term of the deal. Align expects to complete the transaction by April 26, 2023, funding it with cash on hand.
As of Dec. 31, 2022, Align had approximately 77.3 million shares outstanding and $1 billion in cash, equivalents and securities. Shares of ALGN ticked up 1.2% at $347.05 apiece as the market opened today.
“We’re pleased to announce this latest $250 million ASR, which reflects the strength of our balance sheet and cash flow generation, as well as management’s and the board’s continued confidence in our ability to capitalize on the large market opportunities in our target markets and trajectory for growth,” Morici said. “Returning capital to our shareholders through stock repurchase programs while simultaneously investing in our strategic growth drivers, is consistent with our capital allocation strategy and commitment to increasing shareholder value.”