Alphatec Holdings , Inc. (NASDAQ:ATEC), a company specializing in surgical and medical instruments, has reported a notable stock transaction involving one of its directors. Evan Bakst, a board member of Alphatec, has recently increased his stake in the company through the acquisition of additional shares.
According to the latest filings, Bakst purchased 35,000 shares of Alphatec common stock on August 23, 2024. The shares were bought at a weighted average price of $5.76, with individual transactions occurring in a price range from $5.73 to $5.78. The total investment for this purchase amounted to approximately $201,600.
The transaction has resulted in Bakst's indirect ownership through The DEB Children's Trust, reaching a total of 50,000 shares of common stock following the acquisition. Additionally, the filing revealed that Bakst directly owns 1,105,785 shares of Alphatec Holdings, Inc.
Investors and the market typically monitor insider transactions as they can provide insights into the confidence that company executives and directors have in the firm's prospects. The recent purchase by Bakst could be interpreted as a positive sign of his belief in the company's future.
Alphatec Holdings, Inc. has not made any additional comments regarding the transaction. Interested parties, including shareholders and the SEC, can request detailed information about the exact number of shares acquired at each price point within the reported range, as noted in the filing's footnote.
The transaction was officially signed off by Tyson E. Marshall, Attorney-in-Fact, on August 26, 2024.
In other recent news, Alphatec Holdings reported a robust performance for Q2 2024, with total revenue reaching $146 million, a 25% increase year-over-year. The company's surgical revenue grew by 27%, and new user growth was reported at 20%. ATEC also achieved profitability with an adjusted EBITDA of $5.6 million. In light of these developments, Needham maintained its Buy rating on Alphatec but reduced the price target to $13 from $23, reflecting a cautious stance on Alphatec's free cash flow breakeven timeline and near-term risks. The firm's report suggests that Alphatec's journey to breakeven by 2025 will necessitate a decrease in investments. Despite the price target reduction, Needham's stance continues to be positive on Alphatec Holdings, as indicated by the reiterated Buy rating. Investors are advised to monitor Alphatec's financial performance and strategic investment decisions, which will be critical to the company's success in achieving its free cash flow goals.
InvestingPro Insights
As Alphatec Holdings, Inc. (NASDAQ:ATEC) sees insider activity with Director Evan Bakst's recent share purchase, the InvestingPro platform provides valuable insights into the company's financial health and market performance. ATEC's stock has been identified as oversold according to the RSI metric, which could suggest a potential rebound or at least a stabilization of the stock price following this insider buying signal. Moreover, the company's liquid assets are reported to exceed its short-term obligations, indicating a degree of financial resilience despite the challenges it faces.
InvestingPro Data reveals a market capitalization of $835.74 million, which is significant for a company specializing in surgical and medical instruments. However, the data also shows a negative P/E ratio of -4.43, reflecting the market's current concerns about profitability. Additionally, with a high Price/Book ratio of 48.76 as of the last twelve months leading up to Q2 2024, the stock is trading at a premium compared to its book value, which could be seen as a risk factor for value-oriented investors.
Despite these concerns, the two InvestingPro Tips that stand out are the RSI suggesting an oversold condition and the company's liquid assets covering short-term obligations. These insights, coupled with the recent insider buying, could be of interest to investors evaluating the company's stock. For further analysis, there are 11 additional InvestingPro Tips available on the platform, which can provide a more comprehensive understanding of Alphatec's investment profile.
Interested investors can explore these additional tips and more detailed analytics by visiting the InvestingPro platform at https://www.investing.com/pro/ATEC.
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