Alphatec (NASDAQ:ATEC) Shares Gap Up After Insider Buying Activity

Key Points

• Alphatec shares jumped from a prior close of $8.84 to open at $9.55 after CEO Patrick Miles purchased 115,000 shares at an average price of $8.81, increasing his ownership by 1.99%.
• Analysts remain broadly positive, with 13 Buy ratings and an average price target of $17.40; recent targets range from $12 to $16.
• The company reported quarterly revenue of $213.51 million, up 15.1% year over year, while matching the $0.07 EPS consensus. Alphatec remains unprofitable, with a negative net margin and analysts expecting a full-year loss.

Alphatec Holdings, Inc. (NASDAQ:ATEC - Get Free Report) shares gapped up before the market opened on Friday after an insider bought additional shares in the company. The stock had previously closed at $8.84, but opened at $9.55. Alphatec shares last traded at $10.0050, with a volume of 681,499 shares changing hands.

Specifically, CEO Patrick Miles purchased 115,000 shares of the firm's stock in a transaction on Thursday, September 10th. The shares were acquired at an average price of $8.81 per share, for a total transaction of $1,013,150.00. Following the purchase, the chief executive officer directly owned 5,893,551 shares in the company, valued at $51,922,184.31. This trade represents a 1.99% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on ATEC. BMO Capital Markets lifted their target price on Alphatec from $11.00 to $12.00 and gave the stock an "outperform" rating in a report on Wednesday, August 5th. UBS Group increased their price target on Alphatec from $15.00 to $16.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Stephens initiated coverage on Alphatec in a report on Thursday, July 23rd. They set an "overweight" rating and a $15.00 price target for the company. Wall Street Zen downgraded Alphatec from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Finally, Stifel Nicolaus decreased their price objective on Alphatec from $16.00 to $13.00 and set a "buy" rating on the stock in a report on Wednesday, July 8th. Thirteen equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $17.40.

Alphatec Price Performance

The company has a quick ratio of 1.07, a current ratio of 1.89 and a debt-to-equity ratio of 40.35. The company has a market capitalization of $1.57 billion, a PE ratio of -14.33 and a beta of 0.85. The firm's 50 day simple moving average is $9.27 and its 200 day simple moving average is $9.80.

Alphatec (NASDAQ:ATEC - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The medical technology company reported $0.07 EPS for the quarter, meeting the consensus estimate of $0.07. Alphatec had a negative net margin of 13.49% and a negative return on equity of 6,752.24%. The company had revenue of $213.51 million for the quarter, compared to the consensus estimate of $211.26 million. During the same period in the prior year, the firm posted $0.02 EPS. The firm's revenue was up 15.1% compared to the same quarter last year. As a group, research analysts anticipate that Alphatec Holdings, Inc. will post -0.45 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Summit Securities Group LLC purchased a new position in Alphatec during the 1st quarter valued at $29,000. Osterweis Capital Management Inc. bought a new stake in shares of Alphatec during the second quarter worth $37,000. Integrated Wealth Concepts LLC bought a new stake in shares of Alphatec during the second quarter worth $52,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Alphatec by 157.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,571 shares of the medical technology company's stock worth $54,000 after purchasing an additional 1,571 shares during the last quarter. Finally, Allworth Financial LP boosted its position in 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 buying an additional 3,015 shares during the period. Institutional investors own 66.35% of the company's stock.

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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