HC Wainwright Cuts Earnings Estimates for Alphatec

Key Points

• HC Wainwright lowered Alphatec’s FY2027 EPS estimate to $0.47 from $0.59, while maintaining a Buy rating and a $24 price target. The firm also projects FY2030 EPS of $1.19.
• Alphatec’s latest quarterly results met expectations at $0.07 EPS, while revenue of $213.51 million exceeded forecasts and rose 15.1% year over year.
• Analyst sentiment remains broadly positive, with 13 Buy ratings and an average price target of $17.40, compared with shares trading around $9.49.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Free Report) - HC Wainwright reduced their FY2027 earnings per share (EPS) estimates for shares of Alphatec in a note issued to investors on Wednesday, August 5th. HC Wainwright analyst S. Lee now anticipates that the medical technology company will post earnings of $0.47 per share for the year, down from their previous forecast of $0.59. HC Wainwright currently has a "Buy" rating and a $24.00 target price on the stock. The consensus estimate for Alphatec's current full-year earnings is ($0.44) per share. HC Wainwright also issued estimates for Alphatec's FY2030 earnings at $1.19 EPS.

Alphatec (NASDAQ:ATEC - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The medical technology company reported $0.07 earnings per share for the quarter, meeting analysts' consensus estimates of $0.07. Alphatec had a negative return on equity of 6,752.24% and a negative net margin of 13.49%.The firm had revenue of $213.51 million during the quarter, compared to analysts' expectations of $211.26 million. During the same period last year, the firm posted $0.02 EPS. The business's revenue was up 15.1% on a year-over-year basis.

A number of other research analysts have also recently issued reports on ATEC. TD Cowen lifted their price target on Alphatec from $11.00 to $13.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Wells Fargo & Company decreased their price objective on shares of Alphatec from $28.00 to $14.00 and set an "overweight" rating on the stock in a report on Thursday, May 7th. BMO Capital Markets raised their price objective on shares of Alphatec from $11.00 to $12.00 and gave the company an "outperform" rating in a research report on Wednesday, August 5th. Piper Sandler reaffirmed an "overweight" rating and issued a $14.00 target price (down from $25.00) on shares of Alphatec in a research note on Wednesday, May 6th. Finally, Stifel Nicolaus reduced their target price on shares of Alphatec from $16.00 to $13.00 and set a "buy" rating on the stock in a research report on Wednesday, July 8th. Thirteen investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Alphatec has an average rating of "Moderate Buy" and an average price target of $17.40.

Alphatec Price Performance

Shares of ATEC stock opened at $9.49 on Tuesday. The stock's fifty day moving average is $8.83 and its 200-day moving average is $10.60. The company has a debt-to-equity ratio of 40.35, a quick ratio of 1.07 and a current ratio of 1.89. The stock has a market capitalization of $1.47 billion, a PE ratio of -13.37 and a beta of 0.85. Alphatec has a 52 week low of $6.82 and a 52 week high of $23.29.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Millennium Management LLC increased its holdings in Alphatec by 292.2% in the fourth 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 during the last quarter. Iron Triangle Partners LP bought a new position in Alphatec during the fourth quarter worth about $27,051,000. Morgan Stanley boosted its holdings in Alphatec by 22.0% during the fourth quarter. Morgan Stanley now owns 4,340,936 shares of the medical technology company's stock worth $91,333,000 after buying an additional 784,191 shares during the last quarter. M&G PLC acquired a new position in shares of Alphatec during the 4th quarter worth about $14,055,000. Finally, Two Sigma Investments LP grew its position in shares of Alphatec by 59.0% during the 3rd quarter. Two Sigma Investments LP now owns 1,794,324 shares of the medical technology company's stock worth $26,089,000 after buying an additional 665,634 shares during the period. Institutional investors and hedge funds own 66.35% of the company's stock.

Insider Activity at Alphatec

In related news, General Counsel Tyson Eliot Marshall sold 8,168 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $9.65, for a total transaction of $78,821.20. Following the completion of the sale, the general counsel directly owned 630,398 shares of the company's stock, valued at $6,083,340.70. The trade was a 1.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at 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. Also, Director Karen K. Mcginnis sold 6,050 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $8.01, for a total transaction of $48,460.50. Following the completion of the transaction, the director owned 94,671 shares in the company, valued at $758,314.71. This represents a 6.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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.

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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