Alphatec (NASDAQ:ATEC) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• Alphatec shares traded unusually heavily, with 4.7 million shares changing hands—56% above average volume—and the stock rising to $7.46 from a $7.04 close.
• Analysts remain broadly positive, with 12 Buy ratings, two Holds and one Sell; however, several firms recently cut their price targets. The consensus target is $16.13, well above the current price.
• The company’s latest quarter fell slightly short of estimates, reporting $0.09 EPS and $221.2 million in revenue, though revenue increased 12.6% year over year. CEO Patrick Miles bought $1.0 million of stock, while the company continues to report negative profitability metrics.

Shares of Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) saw unusually-high trading volume on Monday. 4,697,587 shares changed hands during mid-day trading, an increase of 56% from the average daily volume of 3,018,966 shares. The stock last traded at $7.4560 and had previously closed at $7.04.

Wall Street Analyst Weigh In

ATEC has been the subject of several recent analyst reports. TD Cowen dropped their target price on shares of Alphatec from $13.00 to $10.00 and set a "buy" rating for the company in a report on Friday. Stifel Nicolaus cut 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. Canaccord Genuity Group cut their target price on Alphatec from $19.00 to $16.00 and set a "buy" rating on the stock in a research report on Friday. Wells Fargo & Company cut their target price on shares of Alphatec from $14.00 to $12.00 and set an "overweight" rating for the company in a report on Friday. Finally, JPMorgan Chase & Co. decreased their price target on shares of Alphatec from $16.00 to $15.00 and set an "overweight" rating on the stock in a research note on Friday. Twelve research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $16.13.

Alphatec Price Performance

The business's 50-day simple moving average is $10.14 and its 200-day simple moving average is $10.62. The company has a market cap of $1.16 billion, a price-to-earnings ratio of -13.54 and a beta of 0.88.

Alphatec (NASDAQ:ATEC - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The medical technology company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.01). Alphatec had a negative net margin of 10.35% and a negative return on equity of 6,752.24%. The firm had revenue of $221.17 million during the quarter, compared to analyst estimates of $225.16 million. During the same period last year, the business earned $0.03 EPS. The firm's revenue was up 12.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Alphatec Holdings, Inc. will post -0.45 EPS for the current year.

Insider Activity at Alphatec

In other news, General Counsel Tyson Marshall sold 8,168 shares of Alphatec stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $9.65, for a total value of $78,821.20. Following the transaction, the general counsel owned 630,398 shares of the company's stock, valued at $6,083,340.70. The trade was a 1.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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. Also, CEO Patrick Miles bought 115,000 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was purchased at an average price of $8.81 per share, with a total value of $1,013,150.00. Following the completion of the acquisition, the chief executive officer owned 5,893,551 shares of the company's stock, valued at approximately $51,922,184.31. This trade represents a 1.99% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 13.48% of the company's stock.

Hedge Funds Weigh In On Alphatec

Hedge funds have recently made changes to their positions in the business. Summit Securities Group LLC bought a new stake in Alphatec during the first quarter worth about $29,000. Sterling Capital Management LLC grew its position in shares of Alphatec by 841.5% during the 3rd quarter. Sterling Capital Management LLC now owns 4,105 shares of the medical technology company's stock worth $42,000 after buying an additional 3,669 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in shares of Alphatec in the 2nd quarter valued at approximately $52,000. Allworth Financial LP raised its position in shares of Alphatec by 82.6% in the 2nd quarter. Allworth Financial LP now owns 6,666 shares of the medical technology company's stock valued at $58,000 after acquiring an additional 3,015 shares during the period. Finally, Chicago Partners Investment Group LLC bought a new position in shares of Alphatec during the third quarter worth $112,000. Institutional investors and hedge funds 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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