Alphatec (NASDAQ:ATEC) Stock Gets Downgrade from BMO Capital Markets

Key Points

• BMO Capital Markets downgraded Alphatec from “outperform” to “market perform” and set an $8.00 price target, implying approximately 29.6% downside from the reported share price.
• Despite the downgrade, analysts’ overall view remains positive: Alphatec has a “Moderate Buy” consensus rating and a $17.00 consensus price target, based on 12 Buy, two Hold, and one Sell rating.
• Alphatec’s latest quarterly results fell slightly short of expectations, with EPS of $0.09 versus $0.10 expected and revenue of $221.17 million versus $225.16 million projected; revenue still increased 12.6% year over year.

Alphatec (NASDAQ:ATEC - Get Free Report) was downgraded by stock analysts at BMO Capital Markets from an "outperform" rating to a "market perform" rating in a note issued to investors on Friday, MarketBeat Ratings reports. They presently have a $8.00 target price on the medical technology company's stock. BMO Capital Markets's price objective suggests a potential downside of 29.64% from the stock's current price.

ATEC has been the subject of several other reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alphatec in a report on Monday, August 3rd. Stifel Nicolaus lowered their price target on Alphatec from $16.00 to $13.00 and set a "buy" rating on the stock in a report on Wednesday, July 8th. Wall Street Zen downgraded shares of Alphatec from a "buy" rating to a "hold" rating in a research report on Sunday, October 11th. Needham & Company LLC cut their price target on Alphatec from $14.00 to $12.00 and set a "buy" rating for the company in a research note on Friday. Finally, UBS Group increased their target price on shares of Alphatec from $15.00 to $16.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Twelve analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Alphatec presently has a consensus rating of "Moderate Buy" and a consensus target price of $17.00.

Alphatec Stock Performance

Shares of Alphatec stock opened at $11.37 on Friday. Alphatec has a 1 year low of $6.82 and a 1 year high of $23.29. The firm's 50-day simple moving average is $10.18 and its 200-day simple moving average is $10.67. The firm has a market cap of $1.76 billion, a PE ratio of -16.01 and a beta of 0.78.

Alphatec (NASDAQ:ATEC - Get Free Report) last issued its earnings results on Thursday, October 29th. The medical technology company reported $0.09 earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.01). The business had revenue of $221.17 million for the quarter, compared to analyst estimates of $225.16 million. Alphatec had a negative return on equity of 6,752.24% and a negative net margin of 13.49%. The firm's revenue for the quarter was up 12.6% on a year-over-year basis. During the same period last year, the company posted $0.03 earnings per share. On average, equities analysts predict that Alphatec will post -0.45 earnings per share for the current year.

Insider Activity at Alphatec

In other news, CEO Patrick Miles bought 115,000 shares of the company's stock in a transaction dated Thursday, September 10th. The stock was bought at an average price of $8.81 per share, for a total transaction of $1,013,150.00. Following the completion of the transaction, the chief executive officer directly owned 5,893,551 shares in the company, valued at $51,922,184.31. The trade was a 1.99% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, General Counsel Tyson Marshall sold 8,168 shares of Alphatec stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $9.65, for a total transaction of $78,821.20. Following the sale, the general counsel directly owned 630,398 shares of the company's stock, valued at $6,083,340.70. This represents a 1.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 insiders.

Institutional Trading of Alphatec

A number of large investors have recently made changes to their positions in the company. Summit Securities Group LLC acquired a new position in shares of Alphatec in the first quarter valued at approximately $29,000. Sterling Capital Management LLC lifted its position in Alphatec by 841.5% in the 3rd quarter. Sterling Capital Management LLC now owns 4,105 shares of the medical technology company's stock valued at $42,000 after acquiring an additional 3,669 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in Alphatec in the 2nd quarter worth $52,000. Allworth Financial LP boosted its stake in Alphatec by 82.6% in the 2nd quarter. Allworth Financial LP now owns 6,666 shares of the medical technology company's stock worth $58,000 after purchasing an additional 3,015 shares during the period. Finally, Atlas Brown Inc. bought a new position in Alphatec during the 2nd quarter worth about $111,000. Institutional investors own 66.35% of the company's stock.

Alphatec Company Profile

Alphatec Holdings, Inc is a medical technology company focused on the design, development and commercialization of products and procedural solutions for spine surgery. The company aims to improve the treatment of spinal disorders through technologies that support spinal fusion, deformity correction, reconstruction and minimally invasive procedures.

Its portfolio includes spinal implants, surgical instruments, navigation and imaging technologies, and intraoperative monitoring solutions.

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