Alphatec (NASDAQ:ATEC) Stock Price Down 8.1% - Here's What Happened

Key Points

• Alphatec shares fell 8.1% to about $9.52, with trading volume 44% below the average daily level.
• Despite the decline, analysts maintain a generally positive view: 13 rate the stock a Buy, with an overall “Moderate Buy” consensus and an average price target of $17.27.
• The latest quarter showed 15.1% year-over-year revenue growth to $213.51 million, while earnings per share met estimates at $0.07; however, the company continues to report negative profitability metrics.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) shares dropped 8.1% on Wednesday . The company traded as low as $9.26 and last traded at $9.5160. 1,758,778 shares were traded during trading, a decline of 44% from the average daily volume of 3,139,033 shares. The stock had previously closed at $10.35.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on ATEC shares. Stephens started coverage on Alphatec in a research note on Thursday, July 23rd. They issued an "overweight" rating and a $15.00 price target on the stock. Piper Sandler reissued an "overweight" rating and set a $14.00 price target (down from $25.00) on shares of Alphatec in a research report on Wednesday, May 6th. Canaccord Genuity Group cut their price objective on shares of Alphatec from $25.00 to $23.00 and set a "buy" rating for the company in a research report on Wednesday, May 6th. JPMorgan Chase & Co. decreased their target price on shares of Alphatec from $24.00 to $16.00 and set an "overweight" rating on the stock in a report on Wednesday, May 6th. Finally, BMO Capital Markets upped their price target on shares of Alphatec from $11.00 to $12.00 and gave the stock an "outperform" rating in a report on Wednesday. Thirteen research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $17.27.

Alphatec Stock Performance

The stock has a market capitalization of $1.45 billion, a P/E ratio of -11.57 and a beta of 0.85. The company has a current ratio of 1.90, a quick ratio of 1.12 and a debt-to-equity ratio of 40.35. The company has a 50-day moving average price of $8.70 and a two-hundred day moving average price of $10.83.

Alphatec (NASDAQ:ATEC - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The medical technology company reported $0.07 earnings per share for the quarter, meeting the consensus estimate of $0.07. Alphatec had a negative net margin of 15.93% and a negative return on equity of 1,183.84%. The firm had revenue of $213.51 million during the quarter, compared to the consensus estimate of $211.26 million. During the same period in the previous year, the firm posted $0.02 earnings per share. The business's revenue was up 15.1% compared to the same quarter last year. On average, equities analysts forecast that Alphatec Holdings, Inc. will post -0.44 earnings per share for the current year.

Insider Buying and Selling at Alphatec

In other news, Director Karen K. Mcginnis sold 6,050 shares of the company's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $8.01, for a total value of $48,460.50. Following the completion of the sale, the director owned 94,671 shares in the company, valued at $758,314.71. This represents a 6.01% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Summit Securities Group LLC purchased a new stake in Alphatec during the first quarter valued at about $29,000. Osterweis Capital Management Inc. bought a new position in Alphatec in the 2nd quarter worth approximately $37,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Alphatec by 157.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,571 shares of the medical technology company's stock worth $54,000 after buying an additional 1,571 shares during the period. Atlas Brown Inc. purchased a new position in Alphatec in the 2nd quarter valued at approximately $111,000. Finally, Lido Advisors LLC purchased a new position in Alphatec in the 1st quarter valued at approximately $115,000. Institutional investors 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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