Wall Street Zen Downgrades Alphatec (NASDAQ:ATEC) to Hold

Key Points

• Wall Street Zen downgraded Alphatec from a "buy" rating to a "hold" rating in a recent research note, impacting investor sentiment.
• Despite the downgrade, Alphatec still has a strong market presence with six analysts rating it as a "buy" and a current average price target of $18.50.
• Recent insider transactions showed CEO Patrick Miles and Director Mortimer Berkowitz III selling significant shares of the company's stock, indicating potential concerns among company leadership.

Alphatec (NASDAQ:ATEC - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Friday.

ATEC has been the subject of several other research reports. Lake Street Capital upgraded shares of Alphatec to a "buy" rating and set a $18.00 price target for the company in a research report on Monday, June 16th. Barclays reiterated an "overweight" rating and issued a $22.00 target price (up from $21.00) on shares of Alphatec in a research note on Monday, August 4th. Finally, Canaccord Genuity Group restated a "buy" rating and issued a $20.00 price target on shares of Alphatec in a research report on Friday, August 1st. Six investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Alphatec currently has an average rating of "Buy" and an average target price of $18.50.

Alphatec Stock Performance

Shares of NASDAQ:ATEC traded down $0.37 during trading on Friday, reaching $15.02. 1,339,237 shares of the company's stock traded hands, compared to its average volume of 1,744,039. The company has a debt-to-equity ratio of 23.22, a current ratio of 2.88 and a quick ratio of 1.77. Alphatec has a 12 month low of $4.88 and a 12 month high of $16.70. The company has a 50 day moving average of $14.69 and a 200-day moving average of $12.36. The stock has a market capitalization of $2.22 billion, a P/E ratio of -13.29 and a beta of 1.02.

Alphatec (NASDAQ:ATEC - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The medical technology company reported $0.02 earnings per share for the quarter, beating analysts' consensus estimates of ($0.06) by $0.08. Alphatec had a negative net margin of 24.33% and a negative return on equity of 1,657.19%. The business had revenue of $185.54 million during the quarter, compared to the consensus estimate of $178.85 million. During the same quarter in the prior year, the firm earned ($0.29) EPS. The company's revenue for the quarter was up 27.5% compared to the same quarter last year. Alphatec has set its FY 2025 guidance at EPS. On average, equities analysts expect that Alphatec will post -1.08 EPS for the current year.

Insider Transactions at Alphatec

In other Alphatec news, CEO Patrick Miles sold 300,000 shares of the company's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $15.73, for a total value of $4,719,000.00. Following the transaction, the chief executive officer directly owned 5,564,078 shares in the company, valued at $87,522,946.94. The trade was a 5.12% 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 hyperlink. Also, Director Mortimer Berkowitz III sold 62,500 shares of the company's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $15.97, for a total transaction of $998,125.00. Following the completion of the transaction, the director owned 618,050 shares in the company, valued at $9,870,258.50. This trade represents a 9.18% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 686,057 shares of company stock valued at $10,439,311. Corporate insiders own 20.90% of the company's stock.

Institutional Investors Weigh In On Alphatec

A number of hedge funds have recently made changes to their positions in ATEC. Osterweis Capital Management Inc. acquired a new stake in Alphatec during the 2nd quarter worth approximately $37,000. Larson Financial Group LLC acquired a new stake in Alphatec during the 1st quarter worth approximately $54,000. Nisa Investment Advisors LLC boosted its position in Alphatec by 22.4% during the 2nd quarter. Nisa Investment Advisors LLC now owns 5,714 shares of the medical technology company's stock worth $63,000 after buying an additional 1,045 shares during the period. Segment Wealth Management LLC acquired a new stake in Alphatec during the 1st quarter worth approximately $101,000. Finally, FORA Capital LLC acquired a new stake in Alphatec during the 1st quarter worth approximately $102,000. 66.35% of the stock is currently owned by institutional investors and hedge funds.

About Alphatec

Alphatec Holdings, Inc, a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders in the United States and internationally. It manufactures and sells implants and instruments through third-party suppliers. The company offers Alpha InformatiX product platform, including EOS imaging system that provides full-body imaging; VEA alignment mobile application, which leverages EOS technology to more quickly quantify alignment parameters on a mobile device; SafeOp Neural InformatiX System that automates electromyographic and somatosensory evoked potential monitoring; and Valence, an intra-operative system that integrates navigation and robotics into spine procedures, as well as Sigma Prone TransPsoas (PTP) Access and PTP Patient Positioning Systems.

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