Alphatec (NASDAQ:ATEC) Announces Quarterly Earnings Results, Hits Estimates

Key Points

• Alphatec reported quarterly EPS of $0.07, matching analyst expectations. The company continues to post weak profitability, with a negative net margin of 15.93% and return on equity of -1,183.84%.
• Shares rose to $10.35 during Tuesday trading, while remaining well below the 12-month high of $23.29. Alphatec has a market capitalization of approximately $1.59 billion and a negative P/E ratio of -12.62.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $17.13, although several firms recently reduced their targets. Institutional investors own 66.35% of the stock, and insiders own 13.48%.

Alphatec (NASDAQ:ATEC - Get Free Report) released its earnings results on Tuesday. The medical technology company reported $0.07 earnings per share for the quarter, meeting the consensus estimate of $0.07, FiscalAI reports. Alphatec had a negative return on equity of 1,183.84% and a negative net margin of 15.93%.

Alphatec Price Performance

ATEC traded up $0.20 during trading on Tuesday, reaching $10.35. 4,374,439 shares of the company traded hands, compared to its average volume of 3,149,060. The company has a debt-to-equity ratio of 40.35, a quick ratio of 1.12 and a current ratio of 1.90. The firm has a fifty day simple moving average of $8.66 and a 200 day simple moving average of $10.87. Alphatec has a 12-month low of $6.82 and a 12-month high of $23.29. The company has a market cap of $1.59 billion, a P/E ratio of -12.62 and a beta of 0.85.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on ATEC shares. TD Cowen decreased their price objective on Alphatec from $20.00 to $11.00 and set a "buy" rating on the stock in a research note on Wednesday, May 6th. Weiss Ratings upgraded Alphatec from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, May 6th. Stifel Nicolaus reduced their target price on shares of Alphatec from $16.00 to $13.00 and set a "buy" rating for the company in a report on Wednesday, July 8th. Wall Street Zen cut shares of Alphatec from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Finally, BMO Capital Markets began coverage on shares of Alphatec in a research report on Wednesday, July 8th. They issued an "outperform" rating and a $11.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $17.13.

Insiders Place Their Bets

In related news, Director Karen K. Mcginnis sold 6,050 shares of the firm's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $8.01, for a total transaction of $48,460.50. Following the completion of the transaction, the director directly owned 94,671 shares of the company's stock, valued at approximately $758,314.71. This trade represents a 6.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 13.48% of the company's stock.

Institutional Investors Weigh In On Alphatec

A number of hedge funds have recently made changes to their positions in ATEC. Morgan Stanley raised its holdings in shares of Alphatec by 22.0% during the 4th quarter. Morgan Stanley now owns 4,340,936 shares of the medical technology company's stock worth $91,333,000 after acquiring an additional 784,191 shares in the last quarter. State Street Corp grew its stake in shares of Alphatec by 6.4% in the 4th quarter. State Street Corp now owns 2,889,240 shares of the medical technology company's stock worth $60,790,000 after buying an additional 174,287 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Alphatec by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 2,828,026 shares of the medical technology company's stock worth $59,511,000 after buying an additional 32,465 shares during the last quarter. Millennium Management LLC raised its position in shares of Alphatec by 292.2% during the 4th quarter. Millennium Management LLC now owns 2,225,927 shares of the medical technology company's stock valued at $46,834,000 after buying an additional 1,658,349 shares in the last quarter. Finally, Two Sigma Investments LP lifted its holdings in shares of Alphatec by 59.0% in the 3rd quarter. Two Sigma Investments LP now owns 1,794,324 shares of the medical technology company's stock valued at $26,089,000 after acquiring an additional 665,634 shares during the last quarter. 66.35% of the stock is currently owned by hedge funds and other institutional investors.

Alphatec Company Profile

Alphatec Holdings, Inc NASDAQ: ATEC is a medical technology company focused on the design, development and commercialization of products for the surgical correction of degenerative spinal conditions. The company's portfolio centers on interbody implants, biologics, fixation devices and surgical planning tools intended to improve patient outcomes in spinal fusion procedures. Alphatec's flagship offerings include customizable interbody cages, bone graft materials and specialized instrumentation designed for minimally invasive and open spinal surgeries.

Founded as Alphatec Spine in 1985 and rebranded as Alphatec Holdings in 2018, the company has grown from a single-product organization into a multi-platform innovator in the spine market.

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