Alphatec (NASDAQ:ATEC) Shares Gap Up After Better-Than-Expected Earnings

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.

Shares of Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) gapped up prior to trading on Friday following a stronger than expected earnings report. 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.

The medical technology company reported $0.02 EPS for the quarter, beating analysts' consensus estimates of ($0.06) by $0.08. Alphatec had a negative return on equity of 1,657.19% and a negative net margin of 24.33%. The company had revenue of $185.54 million during the quarter, compared to analyst estimates of $178.85 million. During the same period in the prior year, the company earned ($0.29) earnings per share. The firm's revenue was up 27.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Canaccord Genuity Group restated a "buy" rating and set a $20.00 price objective on shares of Alphatec in a research report on Friday. HC Wainwright restated a "buy" rating and set a $20.00 price objective on shares of Alphatec in a research report on Monday, April 14th. Barclays upped their price objective on Alphatec from $21.00 to $22.00 and gave the company an "overweight" rating in a research report on Monday. Needham & Company LLC reiterated a "buy" rating and issued a $16.00 target price on shares of Alphatec in a research note on Friday, May 2nd. Finally, Lake Street Capital upgraded Alphatec to a "buy" rating and set a $18.00 price objective on the stock in a report on Monday, June 16th. One research analyst has rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $18.50.

Insider Buying and Selling

In related news, COO Scott Lish sold 55,375 shares of the stock in a transaction that occurred on Monday, May 19th. The stock was sold at an average price of $13.00, for a total value of $719,875.00. Following the completion of the transaction, the chief operating officer directly owned 771,645 shares in the company, valued at approximately $10,031,385. This represents a 6.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Craig E. Hunsaker sold 186,122 shares of the company's stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $12.34, for a total value of $2,296,745.48. Following the transaction, the executive vice president owned 1,463,896 shares in the company, valued at $18,064,476.64. This trade represents a 11.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 287,547 shares of company stock valued at $3,553,516. 20.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ATEC. Raymond James Financial Inc. acquired a new stake in shares of Alphatec in the fourth quarter valued at $358,000. Commonwealth Equity Services LLC raised its stake in shares of Alphatec by 55.9% in the fourth quarter. Commonwealth Equity Services LLC now owns 36,929 shares of the medical technology company's stock valued at $339,000 after acquiring an additional 13,246 shares in the last quarter. KLP Kapitalforvaltning AS acquired a new stake in Alphatec in the fourth quarter valued at $228,000. LPL Financial LLC raised its stake in Alphatec by 19.9% in the fourth quarter. LPL Financial LLC now owns 413,235 shares of the medical technology company's stock valued at $3,793,000 after buying an additional 68,516 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in Alphatec by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 5,968,980 shares of the medical technology company's stock valued at $54,795,000 after buying an additional 47,797 shares in the last quarter. 66.35% of the stock is currently owned by institutional investors and hedge funds.

Alphatec Stock Performance

The company has a debt-to-equity ratio of 23.22, a current ratio of 2.88 and a quick ratio of 1.77. The company has a market capitalization of $2.24 billion, a price-to-earnings ratio of -13.54 and a beta of 1.05. The stock has a 50 day simple moving average of $11.41 and a two-hundred day simple moving average of $11.18.

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.