Alphatec (NASDAQ:ATEC) Stock Price Up 7.4% - Here's Why

Key Points

• Alphatec shares rose 7.4% in mid-day trading Monday, reaching as high as $8.18 after closing at $7.66 the prior session. Trading volume was below average at about 2.0 million shares versus a 3.37 million average.
• Analyst sentiment remains broadly positive, with 10 Buy ratings, 1 Hold, and 1 Sell, giving the stock a consensus rating of “Moderate Buy.” However, several firms recently cut price targets, and the consensus target stands at $18.58.
• Recent earnings were mixed: Alphatec missed EPS and revenue expectations for the quarter, though revenue still grew 13.6% year over year. The company also showed notable insider selling in recent months, while institutional investors continue to hold the majority of shares.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) shot up 7.4% during mid-day trading on Monday . The company traded as high as $8.18 and last traded at $8.2290. 1,988,757 shares traded hands during trading, a decline of 41% from the average session volume of 3,373,418 shares. The stock had previously closed at $7.66.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. TD Cowen cut their price target on Alphatec from $20.00 to $11.00 and set a "buy" rating on the stock in a research report on Wednesday, May 6th. HC Wainwright restated a "buy" rating and issued a $24.00 target price on shares of Alphatec in a research note on Thursday, May 7th. Barclays reduced their price target on Alphatec from $27.00 to $24.00 and set an "overweight" rating for the company in a research report on Thursday, May 7th. Wells Fargo & Company decreased their price target on Alphatec from $28.00 to $14.00 and set an "overweight" rating for the company in a report on Thursday, May 7th. Finally, Wall Street Zen upgraded Alphatec from a "hold" rating to a "buy" rating in a research report on Saturday, January 31st. Ten investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $18.58.

Alphatec Price Performance

The company has a quick ratio of 1.12, a current ratio of 1.90 and a debt-to-equity ratio of 40.35. The firm has a market capitalization of $1.25 billion, a PE ratio of -9.89 and a beta of 0.96. The stock has a 50-day moving average price of $10.76 and a 200 day moving average price of $15.50.

Alphatec (NASDAQ:ATEC - Get Free Report) last announced its earnings results on Tuesday, May 5th. The medical technology company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.21). The business had revenue of $192.11 million for the quarter, compared to analysts' expectations of $197.51 million. Alphatec had a negative net margin of 15.93% and a negative return on equity of 1,183.84%. The company's quarterly revenue was up 13.6% on a year-over-year basis. During the same quarter last year, the business earned ($0.35) EPS. Equities analysts forecast that Alphatec Holdings, Inc. will post -0.44 EPS for the current fiscal year.

Insider Activity at Alphatec

In other news, EVP Craig E. Hunsaker sold 82,765 shares of the business's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $12.45, for a total transaction of $1,030,424.25. Following the completion of the sale, the executive vice president owned 1,726,209 shares of the company's stock, valued at $21,491,302.05. The trade was a 4.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Tyson Eliot Marshall sold 88,835 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $12.49, for a total transaction of $1,109,549.15. Following the transaction, the general counsel owned 559,459 shares of the company's stock, valued at approximately $6,987,642.91. This trade represents a 13.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 629,189 shares of company stock worth $7,801,589 in the last ninety days. 13.48% of the stock is owned by company insiders.

Institutional Trading of Alphatec

A number of institutional investors have recently made changes to their positions in ATEC. Vanguard Group Inc. lifted its holdings in Alphatec by 2.4% in the 3rd quarter. Vanguard Group Inc. now owns 6,815,058 shares of the medical technology company's stock valued at $99,091,000 after purchasing an additional 158,295 shares in the last quarter. Tudor Investment Corp ET AL grew its holdings in shares of Alphatec by 608.4% during the third quarter. Tudor Investment Corp ET AL now owns 900,491 shares of the medical technology company's stock worth $13,093,000 after buying an additional 773,367 shares in the last quarter. Lisanti Capital Growth LLC acquired a new stake in shares of Alphatec in the third quarter valued at about $3,305,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Alphatec in the fourth quarter worth about $3,691,000. Finally, Aberdeen Group plc boosted its position in Alphatec by 29.7% during the fourth quarter. Aberdeen Group plc now owns 1,286,195 shares of the medical technology company's stock worth $27,062,000 after acquiring an additional 294,792 shares during the last quarter. 66.35% of the stock is owned by institutional investors and hedge funds.

Alphatec Company Profile

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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