Alphatec (NASDAQ:ATEC) Shares Gap Up - Here's What Happened

Key Points

• Alphatec shares opened higher, rising from a previous close of $9.52 to $10.00 and last trading near $10.13 on volume of about 335,000 shares.
• Analysts remain broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $17.13, despite several firms recently cutting their targets.
• Institutional ownership stands at 66.35%, with major investors including Millennium Management, Morgan Stanley and Tudor Investment significantly increasing their positions.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $9.52, but opened at $10.00. Alphatec shares last traded at $10.1270, with a volume of 334,817 shares changing hands.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. JPMorgan Chase & Co. lowered their target price on Alphatec from $24.00 to $16.00 and set an "overweight" rating for the company in a report on Wednesday, May 6th. Canaccord Genuity Group reduced their price target on Alphatec from $25.00 to $23.00 and set a "buy" rating on the stock in a report on Wednesday, May 6th. Wall Street Zen downgraded Alphatec from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. TD Cowen dropped their price objective on shares of Alphatec from $20.00 to $11.00 and set a "buy" rating for the company in a report on Wednesday, May 6th. Finally, Weiss Ratings upgraded shares of Alphatec from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Alphatec currently has an average rating of "Moderate Buy" and an average target price of $17.13.

Alphatec Price Performance

The company has a fifty day simple moving average of $8.62 and a 200 day simple moving average of $10.91. The stock has a market capitalization of $1.55 billion, a price-to-earnings ratio of -12.32 and a beta of 0.85. The company has a debt-to-equity ratio of 40.35, a quick ratio of 1.12 and a current ratio of 1.90.

Insider Activity

In related news, Director Karen K. Mcginnis sold 6,050 shares of Alphatec stock in a transaction that occurred 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 transaction, the director directly owned 94,671 shares of the company's stock, valued at $758,314.71. The trade was a 6.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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. 13.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ATEC. Millennium Management LLC boosted its position in shares of Alphatec by 292.2% during the 4th quarter. Millennium Management LLC now owns 2,225,927 shares of the medical technology company's stock valued at $46,834,000 after purchasing an additional 1,658,349 shares in the last quarter. Iron Triangle Partners LP bought a new stake in Alphatec in the fourth quarter worth approximately $27,051,000. Morgan Stanley increased its holdings in Alphatec by 22.0% in the fourth quarter. Morgan Stanley now owns 4,340,936 shares of the medical technology company's stock worth $91,333,000 after purchasing an additional 784,191 shares in the last quarter. Tudor Investment Corp ET AL lifted its stake in Alphatec by 608.4% in the third quarter. Tudor Investment Corp ET AL now owns 900,491 shares of the medical technology company's stock valued at $13,093,000 after buying an additional 773,367 shares during the period. Finally, M&G PLC acquired a new position in Alphatec in the fourth quarter valued at approximately $14,055,000. 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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