A significant driver of top-line growth: Alphatec Holdings Inc. (ATEC)

Alphatec Holdings Inc. (NASDAQ: ATEC) stock fell -4.04% on Tuesday to $14.97 against a previous-day closing price of $15.60. With 1.51 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.07 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $16.06 whereas the lowest price it dropped to was $14.80. The 52-week range on ATEC shows that it touched its highest point at $17.13 and its lowest point at $5.73 during that stretch. It currently has a 1-year price target of $19.72. Beta for the stock currently stands at 1.25.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ATEC was down-trending over the past week, with a drop of -1.45%, but this was down by -3.36% over a month. Three-month performance surged to 4.39% while six-month performance rose 48.07%. The stock gained 92.91% in the past year, while it has gained 21.21% so far this year. A look at the trailing 12-month EPS for ATEC yields -1.44 with Next year EPS estimates of -0.80. For the next quarter, that number is -0.28. This implies an EPS growth rate of 1.90% for this year and 30.40% for next year. EPS is expected to grow by 12.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -32.90%.

Float and Shares Shorts:

At present, 109.75 million ATEC shares are outstanding with a float of 68.08 million shares on hand for trading. On Apr 27, 2023, short shares totaled 7.78 million, which was 6.56% higher than short shares on Mar 30, 2023. In addition to Mr. Patrick S. Miles as the firm’s Exec. Chairman, CEO & Pres, Mr. J. Todd Koning serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 51.73% of ATEC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.55% of ATEC, in contrast to 31.97% held by mutual funds. Shares owned by individuals account for 18.05%. As the largest shareholder in ATEC with 4.00% of the stake, BlackRock Fund Advisors holds 4,446,442 shares worth 4,446,442. A second-largest stockholder of ATEC, The Vanguard Group, Inc., holds 3,487,883 shares, controlling over 3.14% of the firm’s shares. First Light Asset Management LLC is the third largest shareholder in ATEC, holding 2,926,173 shares or 2.63% stake. With a 1.60% stake in ATEC, the Janus Henderson Venture Fund is the largest stakeholder. A total of 1,776,696 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 1.59% of ATEC stock, is the second-largest Mutual Fund holder. It holds 1,764,549 shares valued at 25.48 million. iShares Russell 2000 ETF holds 1.38% of the stake in ATEC, owning 1,535,944 shares worth 22.18 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, ATEC reported revenue of $84.15M and operating income of -$29.96M. The EBITDA in the recently reported quarter was -$19.64M and diluted EPS was -$0.36.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ATEC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ATEC analysts setting a high price target of $23.00 and a low target of $17.00, the average target price over the next 12 months is $19.72. Based on these targets, ATEC could surge 53.64% to reach the target high and rise by 13.56% to reach the target low. Reaching the average price target will result in a growth of 31.73% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded ATEC stock several times over the past three months with 2 Buys and 18 Sells. In these transactions, 553,176 shares were bought while 700,121 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 58 over the past year. The total number of shares bought during that period was 9,797,827 while 4,478,664 shares were sold.

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