TLDR:
- Conestoga Capital Advisors released its “Mid Cap Strategy” fourth-quarter 2023 investor letter.
- Align Technology, Inc. (NASDAQ: ALGN) experienced a sharp decline due to missed revenue and reduced guidance.
Conestoga Capital Advisors, an asset management company, recently released its “Mid Cap Strategy” fourth-quarter 2023 investor letter. The letter highlighted the performance of the Mid Cap Composite, which rose 11.00% net of fees in the fourth quarter, but underperformed compared to the Russell Midcap Growth Index. The decline in Align Technology, Inc. (ALGN) stock was attributed to a 3Q revenue miss and a reduction in 4Q guidance, resulting from softer sales and weaker consumer demand in key markets like the US and EMEA. Despite these challenges, the company managed margins well and announced cost actions to support margins and EPS.
Align Technology, Inc. (ALGN) designs and manufactures orthodontics, restorative, and aesthetic dentistry products. The stock closed at $304.65 per share on February 21, 2024, with a one-month return of 16.23%. Although the company is not on the list of 30 Most Popular Stocks Among Hedge Funds, it was held by 50 hedge fund portfolios at the end of the fourth quarter.
Overall, the decline in Align Technology’s stock was primarily driven by weaker consumer confidence and demand, rather than competitive issues. The company’s focus on managing margins and implementing cost-saving measures in response to the demand environment will be crucial for its future performance.
