Insider Buying

Insider Buying Report: Alphatec Holdings Inc (ATEC:US)

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Alphatec Holdings Inc
ATEC:US
12 months:
+105%
Activity:
Bullish
Pattern:
Large CEO purchase
News:
Large purchase by fund linked to insider
Alphatec Holdings Inc
ATEC:US
12 months:
+105%
Activity:
Bullish
Pattern:
Large CEO purchase
News:
Large purchase by fund linked to insider
Insider buying can often provide some vital clues about a stock’s potential. Insiders may sell their company’s stock for a variety of reasons. But they only buy stock for one reason – they expect it to go up.

Here, we are going to highlight a large purchase of stock by a company founded by an insider at Alphatec Holdings Inc (ATEC:US). Alphatec Holdings is an American Healthcare Equipment company that designs, develops, and advances technologies for the surgical treatment of spinal disorders. It’s listed on the NASDAQ Stock Exchange and currently has a market capitalization of $1.09 billion.

Alphatec Holdings Inc: Insider buying

Form 4 filings show that on 18 December, Squadron Capital, a Private Equity fund founded by David Pelizzon, a Director Alphatec Holdings, purchased 1.35 million ATEC shares at a price of $11.11 per share. This purchase cost the fund approximately $15 million.

ATEC:US

Positive insider sentiment

This purchase by Squadron Capital is noteworthy because it has increased its holding by 125%. This suggests that Pelizzon is very bullish on Alphatec’s future prospects, despite the stock trading around all-time highs. Additionally, our Insider Model views this buying activity as positive.

Strong Q3

Alphatec Holdings had a strong Q3 with total revenue of $41.2 million, up 43% year-over year. The gross margin stood at 72.7% in the US, which accounts for the majority of Alphatec’s business. New products accounted for 70% of Q3 revenue in the US and revenue per case in the US increased by 13%.

The outlook statement was incredibly bullish. Pat Miles the Chairman and CEO commented: “This marks our eighth consecutive quarter of double-digit revenue growth. I could not be more confident in ATEC’s future. Our best is yet to come.”

Given this news, and the upbeat tone from management, we see the insider buying here as a bullish signal. It suggests that the insider feels that there is more growth in the share price to come.

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