Alphatec (NASDAQ:ATEC) Shares Gap Down on Disappointing Earnings

Alphatec Holdings, Inc. (NASDAQ:ATEC)’s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $13.58, but opened at $11.64. Alphatec shares last traded at $10.99, with a volume of 1,964,408 shares.

The medical technology company reported ($0.34) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.33) by ($0.01). The business had revenue of $138.48 million during the quarter, compared to the consensus estimate of $134.07 million. The company’s revenue for the quarter was up 26.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.40) earnings per share.

Analyst Ratings Changes

ATEC has been the subject of several analyst reports. Needham & Company LLC reissued a “buy” rating and issued a $23.00 price target on shares of Alphatec in a research note on Wednesday. Wells Fargo & Company assumed coverage on shares of Alphatec in a research report on Friday, February 9th. They issued an “overweight” rating and a $26.00 price objective on the stock. Canaccord Genuity Group reiterated a “buy” rating and set a $25.00 price target on shares of Alphatec in a research note on Wednesday, March 20th. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $20.00 target price on shares of Alphatec in a report on Monday, March 4th. One equities research analyst has rated the stock with a sell rating and seven have given a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $23.63.

Insider Buying and Selling at Alphatec

In other news, General Counsel Tyson Eliot Marshall sold 11,825 shares of the stock in a transaction that occurred on Friday, March 1st. The stock was sold at an average price of $13.30, for a total transaction of $157,272.50. Following the sale, the general counsel now directly owns 305,095 shares in the company, valued at approximately $4,057,763.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, EVP David Sponsel sold 2,500 shares of the business’s stock in a transaction on Wednesday, February 14th. The shares were sold at an average price of $16.16, for a total transaction of $40,400.00. Following the transaction, the executive vice president now directly owns 637,418 shares in the company, valued at approximately $10,300,674.88. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, General Counsel Tyson Eliot Marshall sold 11,825 shares of the business’s stock in a transaction that occurred on Friday, March 1st. The stock was sold at an average price of $13.30, for a total transaction of $157,272.50. Following the completion of the sale, the general counsel now directly owns 305,095 shares of the company’s stock, valued at $4,057,763.50. The disclosure for this sale can be found here. Insiders have sold 285,069 shares of company stock worth $3,971,495 in the last ninety days. 29.12% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ATEC. Swiss National Bank grew its holdings in shares of Alphatec by 1.4% during the first quarter. Swiss National Bank now owns 188,300 shares of the medical technology company’s stock worth $2,597,000 after purchasing an additional 2,600 shares during the last quarter. Essex Investment Management Co. LLC increased its position in shares of Alphatec by 1.5% during the 1st quarter. Essex Investment Management Co. LLC now owns 270,968 shares of the medical technology company’s stock worth $3,737,000 after purchasing an additional 4,112 shares during the last quarter. RiverPark Advisors LLC increased its holdings in Alphatec by 286.3% during the first quarter. RiverPark Advisors LLC now owns 19,443 shares of the medical technology company’s stock worth $268,000 after buying an additional 14,410 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in Alphatec by 276.1% in the first quarter. BNP Paribas Financial Markets now owns 99,790 shares of the medical technology company’s stock valued at $1,376,000 after acquiring an additional 73,257 shares during the last quarter. Finally, Oak Ridge Investments LLC bought a new stake in Alphatec in the first quarter valued at approximately $1,829,000. Institutional investors and hedge funds own 66.35% of the company’s stock.

Alphatec Stock Performance

The stock’s 50-day simple moving average is $13.32 and its 200 day simple moving average is $13.56. The company has a debt-to-equity ratio of 6.54, a current ratio of 2.86 and a quick ratio of 1.99. The stock has a market capitalization of $1.54 billion, a P/E ratio of -7.31 and a beta of 1.48.

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.