Alphatec (NASDAQ:ATEC) Sets New 12-Month Low - Here's Why

Key Points

• Alphatec shares fell to a new 52-week low, trading as low as $6.82 and last changing hands near $6.99 after previously closing at $7.52.
• Recent earnings missed expectations: the medical technology company reported a loss of $0.22 per share versus the expected loss of $0.01, while revenue of $192.11 million also came in below estimates.
• Despite the stock slump, analysts remain mostly positive, with 10 Buy ratings, one Hold, and one Sell; the consensus price target is $18.58, well above the current share price.

Shares of Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $6.82 and last traded at $6.99, with a volume of 5017984 shares traded. The stock had previously closed at $7.52.

Wall Street Analysts Forecast Growth

ATEC has been the topic of a number of recent analyst reports. Wall Street Zen upgraded Alphatec from a "hold" rating to a "buy" rating in a research report on Saturday, January 31st. TD Cowen cut their price objective on Alphatec from $20.00 to $11.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Lake Street Capital reiterated a "buy" rating and issued a $15.00 price objective on shares of Alphatec in a research report on Wednesday, May 6th. Needham & Company LLC dropped their price target on Alphatec from $25.00 to $14.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Finally, Canaccord Genuity Group dropped their price target on Alphatec from $25.00 to $23.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $18.58.

Alphatec Stock Down 7.0%

The company has a quick ratio of 1.12, a current ratio of 1.90 and a debt-to-equity ratio of 40.35. The company has a fifty day simple moving average of $11.21 and a 200 day simple moving average of $15.74. The firm has a market capitalization of $1.07 billion, a P/E ratio of -8.52 and a beta of 0.96.

Alphatec (NASDAQ:ATEC - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The medical technology company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.21). The business had revenue of $192.11 million for the quarter, compared to the consensus estimate of $197.51 million. Alphatec had a negative net margin of 15.93% and a negative return on equity of 1,183.84%. The company's revenue for the quarter was up 13.6% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.35) earnings per share. On average, equities analysts expect that Alphatec Holdings, Inc. will post -0.28 EPS for the current fiscal year.

Insider Transactions at Alphatec

In related news, EVP David Sponsel sold 163,452 shares of the company's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $12.52, for a total transaction of $2,046,419.04. Following the completion of the sale, the executive vice president owned 504,932 shares in the company, valued at approximately $6,321,748.64. This represents a 24.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 sale, the general counsel owned 559,459 shares of the company's stock, valued at approximately $6,987,642.91. This trade represents a 13.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 629,189 shares of company stock worth $7,801,589 in the last three months. 13.48% of the stock is owned by insiders.

Institutional Trading of Alphatec

A number of hedge funds and other institutional investors have recently bought and sold shares of ATEC. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Alphatec by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,005 shares of the medical technology company's stock worth $750,000 after buying an additional 3,196 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in Alphatec in the first quarter worth about $257,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Alphatec by 18.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 265,907 shares of the medical technology company's stock worth $2,696,000 after buying an additional 41,264 shares in the last quarter. Quantbot Technologies LP purchased a new stake in Alphatec in the second quarter worth about $242,000. Finally, Invesco Ltd. increased its position in Alphatec by 455.0% in the second quarter. Invesco Ltd. now owns 282,212 shares of the medical technology company's stock worth $3,133,000 after buying an additional 231,367 shares in the last quarter. Hedge funds and other institutional investors own 66.35% of the company's stock.

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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