Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Alphatec Holdings, Inc. (NASDAQ:ATEC), that sends out a positive message to the company’s shareholders.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Alphatec Holdings
Alphatec Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the General Counsel & Corporate Secretary, Tyson Marshall, sold US$547k worth of shares at a price of US$10.88 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$5.56. So it may not shed much light on insider confidence at current levels. Tyson Marshall was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 254.80k shares for US$1.9m. But insiders sold 50.23k shares worth US$547k. In the last twelve months there was more buying than selling by Alphatec Holdings insiders. They paid about US$7.56 on average. I’d consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Alphatec Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Alphatec Holdings Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Alphatec Holdings. Not only was there no selling that we can see, but they collectively bought US$1.2m worth of shares. This makes one think the business has some good points.
Insider Ownership Of Alphatec Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Alphatec Holdings insiders own about US$96m worth of shares. That equates to 12% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Alphatec Holdings Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Alphatec Holdings insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Alphatec Holdings. For example – Alphatec Holdings has 3 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.