Alphatec Holdings , Inc. (NASDAQ:ATEC), a company specializing in surgical and medical instruments, has reported a significant purchase of shares by director Valentine Keith. According to the latest filing, Keith acquired 39,000 shares of Alphatec's common stock for a total of $255,450, averaging a purchase price of $6.55 per share.
The transaction, which took place on August 2, 2024, was executed in multiple trades with prices ranging from $6.43 to $6.69. Following this purchase, Keith's total holdings in the company increased to 82,140 shares of common stock.
Investors often monitor insider transactions such as these to gain insights into the confidence that company executives and directors have in the firm's future prospects. Keith's recent acquisition could be interpreted as a positive signal regarding Alphatec's potential performance.
Alphatec Holdings, Inc., headquartered in Carlsbad, California, is known for its development and marketing of innovative medical devices for the treatment of spinal disorders. The company's commitment to improving patient outcomes is reflected in its comprehensive product portfolio and ongoing research and development efforts.
This insider transaction was disclosed in compliance with the Securities and Exchange Commission's requirements, providing transparency into the trading activities of the company's insiders. Interested parties can obtain further details regarding the specific prices of shares purchased upon request.
Alphatec's stock performance and insider transactions are closely watched by market participants, and such disclosures are crucial for maintaining an informed investing community.
In other recent news, Alphatec Holdings displayed a strong financial performance in the first quarter of 2024, reporting a 27% surge in total revenue to reach $138 million, and a 30% growth in surgical revenue. Adjusted EBITDA also expanded by 450 basis points. The company has further raised its full-year forecast, reflecting its robust growth. Stifel, despite reducing the price target to $19.00 from $24.00, continues to recommend buying Alphatec's stock, anticipating an improvement in the company's performance in the latter half of 2024. Barclays also initiated coverage on Alphatec with an Overweight rating and a price target of $19.00. Piper Sandler maintained an Overweight rating on Alphatec's stock, despite reducing its price target from $19.00 to $17.00.
In terms of company developments, Alphatec recently underwent significant changes to its board of directors, including the departure of four directors and the election of nine new ones. Shareholders ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024, and approved the compensation of the company's named executive officers.
Alphatec also announced expansion plans, focusing on international markets such as Australia, New Zealand, and Japan. The company expects total revenue to reach around $601 million for 2024 and aims to achieve cash flow breakeven by 2025. These are the latest developments in Alphatec's ongoing efforts to strengthen its market position and future performance.
InvestingPro Insights
As investors digest the news of director Valentine Keith's stock purchase in Alphatec Holdings, Inc. (NASDAQ:ATEC), it's worth considering some key financial metrics and analyst insights from InvestingPro. The company's market capitalization stands at approximately $880.68 million, reflecting the market's current valuation of the firm. Notably, Alphatec's price/book ratio, a measure of market valuation, is at a high 50.4 as of the last twelve months leading up to Q2 2024. This suggests a premium valuation compared to the company's book value.
From a profitability standpoint, Alphatec has been facing challenges, with an operating income margin of -26.21% over the same period, indicating that the company has not been profitable in its operations. Additionally, the stock's performance has seen a significant downturn, with a one-week price total return of -37.0% as of the specified date in 2024. This could be reflective of broader market trends or company-specific events that investors may want to further investigate.
InvestingPro Tips highlight that Alphatec's stock is currently in oversold territory according to the RSI, and analysts have revised their earnings downwards for the upcoming period. This information, alongside the company's recent cash burn rate, could provide a more nuanced understanding of the company's financial health and future prospects. It's also noted that Alphatec does not pay a dividend to shareholders, which might influence the investment strategy of income-seeking investors.
For those looking to delve deeper into Alphatec's financials and future outlook, there are additional InvestingPro Tips available. In fact, a total of 12 more tips can be found on the InvestingPro platform, offering a comprehensive analysis that could be pivotal for making informed investment decisions. For more detailed insights, visit InvestingPro at https://www.investing.com/pro/ATEC.
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