Alphatec (NASDAQ:ATEC) Shares Up 6.8% - Still a Buy?

Key Points

• Alphatec shares rose 6.8% to about $9.26, though trading volume was 92% below the stock’s average daily volume. The company has a $1.43 billion market capitalization and trades below its 200-day moving average.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $17.13. Recent targets range from $14 to $24, despite several downward revisions.
• Institutional investors own 66.35% of Alphatec, with several funds recently increasing their stakes. A director sold shares under a pre-arranged 10b5-1 plan to cover tax obligations, while insiders retain a 13.48% ownership stake.

Shares of Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) traded up 6.8% on Tuesday . The company traded as high as $9.42 and last traded at $9.2580. Approximately 235,857 shares were traded during trading, a decline of 92% from the average daily volume of 3,142,359 shares. The stock had previously closed at $8.67.

Analyst Upgrades and Downgrades

ATEC has been the subject of a number of recent research reports. Canaccord Genuity Group cut their target price on Alphatec from $25.00 to $23.00 and set a "buy" rating for the company in a research note on Wednesday, May 6th. Needham & Company LLC dropped their price objective on shares of Alphatec from $25.00 to $14.00 and set a "buy" rating for the company in a research note on Wednesday, May 6th. HC Wainwright reiterated a "buy" rating and set a $24.00 target price on shares of Alphatec in a research report on Thursday, May 7th. UBS Group assumed coverage on shares of Alphatec in a research note on Tuesday. They issued a "buy" rating and a $15.00 target price on the stock. Finally, Stephens began coverage on Alphatec in a report on Thursday, July 23rd. They set an "overweight" rating and a $15.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Alphatec has a consensus rating of "Moderate Buy" and a consensus price target of $17.13.

Alphatec Stock Performance

The firm has a market capitalization of $1.43 billion, a P/E ratio of -11.36 and a beta of 0.85. The stock has a 50-day moving average of $8.51 and a 200 day moving average of $11.24. 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 at Alphatec

In other news, Director Karen K. Mcginnis sold 6,050 shares of the firm's 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 completion of 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 filing with the SEC, which is available through this link. 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. Insiders own 13.48% of the company's stock.

Institutional Trading of Alphatec

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ATEC. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Alphatec during the fourth quarter worth approximately $3,691,000. Tudor Investment Corp ET AL grew its holdings in Alphatec by 608.4% during the 3rd quarter. Tudor Investment Corp ET AL now owns 900,491 shares of the medical technology company's stock worth $13,093,000 after acquiring an additional 773,367 shares during the period. Aberdeen Group plc raised its position in shares of Alphatec by 29.7% during the 4th quarter. Aberdeen Group plc now owns 1,286,195 shares of the medical technology company's stock valued at $27,062,000 after acquiring an additional 294,792 shares during the last quarter. Pier Capital LLC acquired a new position in shares of Alphatec in the 4th quarter valued at $4,835,000. Finally, Jefferies Financial Group Inc. lifted its stake in shares of Alphatec by 983.5% in the 4th quarter. Jefferies Financial Group Inc. now owns 595,937 shares of the medical technology company's stock valued at $12,539,000 after purchasing an additional 540,937 shares during the period. 66.35% of the stock is currently owned by institutional investors and hedge funds.

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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