Alphatec (NASDAQ:ATEC) Hits New 52-Week Low - Should You Sell?

Key Points

• 52-week low: Alphatec shares hit a new 52-week low of $9.15 (last $9.35) on heavy volume (~4.92M), with the 50-day ($11.94) and 200-day ($16.04) moving averages indicating a downward trend and a market cap of about $1.42B.
• Analyst view: The stock carries a consensus rating of "Moderate Buy" with an average price target of $22.82, based on 1 Strong Buy, 9 Buy, 1 Hold and 1 Sell from covering analysts.
• Mixed fundamentals and insider activity: Alphatec reported a quarterly EPS beat ($0.06 vs. $0.04) and 20.4% revenue growth to $212.9M, but insiders sold 726,972 shares (~$9.18M) in the past three months while owning 22.8% of the company.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $9.15 and last traded at $9.35, with a volume of 4916032 shares changing hands. The stock had previously closed at $10.36.

Analyst Ratings Changes

A number of brokerages have issued reports on ATEC. Piper Sandler reissued an "overweight" rating on shares of Alphatec in a research note on Wednesday, February 25th. Weiss Ratings reissued a "sell (e+)" rating on shares of Alphatec in a research note on Friday, March 27th. Needham & Company LLC reissued a "buy" rating and set a $22.00 target price on shares of Alphatec in a research note on Monday, January 12th. Wall Street Zen raised shares of Alphatec from a "hold" rating to a "buy" rating in a research report on Saturday, January 31st. Finally, Wells Fargo & Company raised shares of Alphatec to a "strong-buy" rating in a research report on Wednesday, March 18th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Alphatec currently has an average rating of "Moderate Buy" and a consensus price target of $22.82.

Alphatec Price Performance

The stock has a market capitalization of $1.42 billion, a P/E ratio of -9.84 and a beta of 1.12. The stock's fifty day moving average is $11.94 and its 200-day moving average is $16.04. The company has a debt-to-equity ratio of 40.35, a current ratio of 2.06 and a quick ratio of 1.28.

Alphatec (NASDAQ:ATEC - Get Free Report) last issued its quarterly earnings data on Tuesday, February 24th. The medical technology company reported $0.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.04 by $0.02. The business had revenue of $212.93 million during the quarter, compared to the consensus estimate of $212.67 million. The company's revenue for the quarter was up 20.4% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.23) earnings per share. On average, equities analysts anticipate that Alphatec Holdings, Inc. will post -0.28 earnings per share for the current year.

Insider Buying and Selling at Alphatec

In related news, General Counsel Tyson Eliot Marshall sold 88,835 shares of the company's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $12.49, for a total value of $1,109,549.15. Following the completion of the sale, the general counsel directly owned 559,459 shares in the company, valued at approximately $6,987,642.91. This represents a 13.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Scott Lish sold 260,535 shares of the company's stock in a transaction on Friday, March 13th. The stock was sold at an average price of $12.30, for a total transaction of $3,204,580.50. Following the completion of the sale, the chief operating officer owned 815,704 shares of the company's stock, valued at $10,033,159.20. This represents a 24.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 726,972 shares of company stock valued at $9,184,386. Company insiders own 22.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Creative Planning lifted its position in Alphatec by 0.9% during the 3rd quarter. Creative Planning now owns 58,654 shares of the medical technology company's stock worth $853,000 after acquiring an additional 534 shares during the last quarter. Valeo Financial Advisors LLC lifted its position in Alphatec by 2.1% during the 3rd quarter. Valeo Financial Advisors LLC now owns 41,296 shares of the medical technology company's stock worth $600,000 after acquiring an additional 846 shares during the last quarter. Arizona State Retirement System lifted its position in Alphatec by 2.8% during the 3rd quarter. Arizona State Retirement System now owns 34,603 shares of the medical technology company's stock worth $503,000 after acquiring an additional 949 shares during the last quarter. Great Lakes Advisors LLC lifted its position in Alphatec by 0.4% during the 4th quarter. Great Lakes Advisors LLC now owns 278,717 shares of the medical technology company's stock worth $5,864,000 after acquiring an additional 1,226 shares during the last quarter. Finally, Franklin Resources Inc. lifted its position in Alphatec by 2.0% during the 4th quarter. Franklin Resources Inc. now owns 64,774 shares of the medical technology company's stock worth $1,363,000 after acquiring an additional 1,299 shares during the last quarter. Institutional investors and hedge funds own 66.35% of the company's stock.

About Alphatec

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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