Alphatec (NASDAQ:ATEC) Shares Down 6.2% - Should You Sell?

Key Points

• Alphatec shares fell 6.2% on Tuesday, trading as low as $8.88 before closing near $9.14, with volume sharply below normal.
• Despite the recent drop, Wall Street analysts remain mostly bullish: the stock carries a consensus “Moderate Buy” rating and an average target price of $17.46, though several firms have recently cut their price targets.
• Insider and institutional activity has been active, including a director’s Rule 10b5-1 share sale and continued buying by hedge funds; institutions now own about 66.35% of the company.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report)'s share price fell 6.2% on Tuesday . The company traded as low as $8.88 and last traded at $9.1350. 288,484 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 3,232,806 shares. The stock had previously closed at $9.74.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. HC Wainwright restated a "buy" rating and issued a $24.00 price target on shares of Alphatec in a research note on Thursday, May 7th. Stifel Nicolaus cut their price objective on Alphatec from $16.00 to $13.00 and set a "buy" rating for the company in a research report on Wednesday, July 8th. Barclays decreased their target price on Alphatec from $27.00 to $24.00 and set an "overweight" rating on the stock in a research report on Thursday, May 7th. Piper Sandler reissued an "overweight" rating and set a $14.00 target price (down from $25.00) on shares of Alphatec in a research note on Wednesday, May 6th. Finally, JPMorgan Chase & Co. decreased their price objective on Alphatec from $24.00 to $16.00 and set an "overweight" rating on the stock in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given 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 stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $17.46.

Alphatec Price Performance

The stock has a 50 day moving average price of $8.36 and a two-hundred day moving average price of $12.12. The firm has a market capitalization of $1.38 billion, a price-to-earnings ratio of -10.96 and a beta of 0.85. The company has a debt-to-equity ratio of 40.35, a current ratio of 1.90 and a quick ratio of 1.12.

Insider Buying and Selling at Alphatec

In other news, Director Karen K. Mcginnis sold 6,050 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $8.01, for a total value of $48,460.50. Following the sale, the director directly owned 94,671 shares in the company, valued at approximately $758,314.71. This trade represents a 6.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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. Corporate insiders own 13.48% of the company's stock.

Institutional Investors Weigh In On Alphatec

A number of hedge funds have recently bought and sold shares of ATEC. Summit Securities Group LLC purchased a new stake in shares of Alphatec during the first quarter worth approximately $29,000. Osterweis Capital Management Inc. purchased a new position in shares of Alphatec during the second quarter worth about $37,000. Northwestern Mutual Wealth Management Co. boosted its stake in Alphatec by 157.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,571 shares of the medical technology company's stock worth $54,000 after purchasing an additional 1,571 shares during the period. FNY Investment Advisers LLC purchased a new position in shares of Alphatec during the third quarter worth about $74,000. Finally, Atlas Brown Inc. purchased a new stake in shares of Alphatec during the second quarter worth approximately $111,000. Institutional investors and hedge funds 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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