Alphatec (NASDAQ:ATEC) Shares Gap Up Following Earnings Beat

Key Points

• Alphatec Holdings reported a quarterly earnings beat with an EPS of $0.02, exceeding the consensus estimate by $0.08, and revenue of $185.54 million surpassing expectations of $178.85 million.
• The stock's price jumped from a previous close of $10.58 to an opening price of $11.98, and it last traded at $13.60 on significant volume of 1,826,672 shares.
• Analyst ratings are predominantly positive, with a consensus rating of "Moderate Buy" and a target price averaging around $18.13 from various research firms.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $10.58, but opened at $11.98. Alphatec shares last traded at $13.60, with a volume of 1,826,672 shares traded.

The medical technology company reported $0.02 EPS for the quarter, topping the consensus estimate of ($0.06) by $0.08. The firm had revenue of $185.54 million during the quarter, compared to analysts' expectations of $178.85 million. Alphatec had a negative return on equity of 1,657.19% and a negative net margin of 25.77%. Alphatec's quarterly revenue was up 27.5% compared to the same quarter last year. During the same period last year, the business earned ($0.29) earnings per share.

Wall Street Analysts Forecast Growth

ATEC has been the subject of a number of research analyst reports. Needham & Company LLC reaffirmed a "buy" rating and issued a $16.00 price target on shares of Alphatec in a report on Friday, May 2nd. HC Wainwright reaffirmed a "buy" rating and issued a $20.00 price target on shares of Alphatec in a report on Monday, April 14th. Lake Street Capital upgraded Alphatec to a "buy" rating and set a $18.00 price objective for the company in a research report on Monday, June 16th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $15.00 price objective (up from $13.00) on shares of Alphatec in a research report on Friday, May 2nd. Two investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.13.

Insider Transactions at Alphatec

In other news, EVP Craig E. Hunsaker sold 186,122 shares of the business's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $12.34, for a total transaction of $2,296,745.48. Following the completion of the transaction, the executive vice president directly owned 1,463,896 shares in the company, valued at approximately $18,064,476.64. The trade was a 11.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Karen K. Mcginnis sold 3,963 shares of the company's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $12.11, for a total value of $47,991.93. Following the transaction, the director directly owned 68,709 shares of the company's stock, valued at approximately $832,065.99. This trade represents a 5.45% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 299,547 shares of company stock worth $3,698,956. 20.90% of the stock is currently owned by company insiders.

Institutional Trading of Alphatec

Several large investors have recently modified their holdings of ATEC. Raymond James Financial Inc. acquired a new stake in shares of Alphatec during the 4th quarter worth $358,000. Commonwealth Equity Services LLC raised its stake in Alphatec by 55.9% during the fourth quarter. Commonwealth Equity Services LLC now owns 36,929 shares of the medical technology company's stock worth $339,000 after acquiring an additional 13,246 shares in the last quarter. KLP Kapitalforvaltning AS bought a new position in shares of Alphatec in the fourth quarter worth about $228,000. LPL Financial LLC lifted its holdings in shares of Alphatec by 19.9% in the fourth quarter. LPL Financial LLC now owns 413,235 shares of the medical technology company's stock worth $3,793,000 after acquiring an additional 68,516 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in shares of Alphatec by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 5,968,980 shares of the medical technology company's stock valued at $54,795,000 after purchasing an additional 47,797 shares in the last quarter. 66.35% of the stock is owned by institutional investors and hedge funds.

Alphatec Stock Performance

The company has a market capitalization of $1.98 billion, a P/E ratio of -11.92 and a beta of 1.05. The firm's fifty day moving average is $11.34 and its 200-day moving average is $11.14.

Alphatec Company Profile

Alphatec Holdings, Inc, a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders in the United States and internationally. It manufactures and sells implants and instruments through third-party suppliers. The company offers Alpha InformatiX product platform, including EOS imaging system that provides full-body imaging; VEA alignment mobile application, which leverages EOS technology to more quickly quantify alignment parameters on a mobile device; SafeOp Neural InformatiX System that automates electromyographic and somatosensory evoked potential monitoring; and Valence, an intra-operative system that integrates navigation and robotics into spine procedures, as well as Sigma Prone TransPsoas (PTP) Access and PTP Patient Positioning Systems.

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