Alphatec Receives Buy Ratings Amid Strong Earnings Growth

Stifel Nicolaus has initiated coverage of Alphatec Holdings, Inc. (NASDAQ: ATEC), issuing a buy rating and setting a price target of $20.00 for the medical technology company’s stock. This announcement was made in a research note published on October 30, 2023, and reflects a growing confidence in Alphatec’s market position.

Recent reports indicate that other analysts have also taken notice of Alphatec’s performance. For instance, Wall Street Zen upgraded the company’s stock from a “hold” to a “buy” on October 18. Conversely, Weiss Ratings maintained a “sell (d-)” rating on October 14. In a more optimistic vein, Wells Fargo & Company raised its price target for Alphatec from $14.00 to $16.00, designating it an “overweight” stock in a report released on October 16.

Additionally, Canaccord Genuity Group reaffirmed its “buy” rating with a price objective of $20.00 on August 1. JPMorgan Chase & Co. also entered the fray, initiating coverage with an “overweight” rating and a price target of $19.00 on October 24. Overall, nine analysts currently rate Alphatec as a buy, while one has given it a sell rating, leading to an average rating of “Moderate Buy” with a target price of $18.44, according to MarketBeat.

Strong Earnings Performance

Alphatec reported its quarterly earnings on October 30, revealing earnings per share (EPS) of $0.03. This figure surpassed analyst expectations, which had projected an EPS loss of ($0.06). The company generated revenue of $196.50 million, exceeding estimates of $182.78 million. Notably, this revenue represents a 30.4% increase compared to the same quarter last year, where it reported an EPS loss of ($0.28).

Looking ahead, Alphatec has provided guidance for fiscal year 2025, with analysts projecting an EPS of -1.08 for the current year. The company’s performance has drawn significant interest from hedge funds as well.

Insider Activity and Institutional Holdings

In recent insider trading news, Director Mortimer Berkowitz III sold 62,500 shares on September 9 at an average price of $15.97, totaling approximately $998,125.00. Following this transaction, Berkowitz owns 618,050 shares valued at about $9,870,258.50, reflecting a 9.18% decrease in his holdings.

Executive Vice President Craig E. Hunsaker also sold 50,000 shares on August 5 for $750,000.00, resulting in a 3.45% reduction in his ownership. Over the past ninety days, insiders have sold a total of 801,616 shares valued at nearly $12.3 million, and insiders currently own 20.90% of the company’s stock.

Hedge funds have been active in reshaping their positions in Alphatec. Osterweis Capital Management Inc. purchased a new position valued at $37,000 during the second quarter. Larson Financial Group LLC acquired a stake worth $54,000 in the first quarter. Furthermore, Nisa Investment Advisors LLC increased its holdings by 22.4% during the second quarter, now owning 5,714 shares valued at $63,000 after buying an additional 1,045 shares.

Other recent purchases include FORA Capital LLC and PKS Advisory Services LLC, which invested approximately $102,000 and $111,000, respectively, in the first quarter. Collectively, hedge funds and institutional investors own about 66.35% of Alphatec’s shares.

Alphatec Holdings, Inc. specializes in the design, development, and advancement of technologies for the surgical treatment of spinal disorders, both in the United States and internationally. The company manufactures and sells a range of products through third-party suppliers, including the Alpha InformatiX product platform, which features the EOS imaging system and the SafeOp Neural InformatiX System.

Investors and analysts alike will be watching closely as Alphatec continues to evolve within the competitive medical technology landscape.