Bullish Alphatec Holdings Insiders Rewarded As Their Investment Rises To US$2.45m

Alphatec Holdings, Inc. (NASDAQ:ATEC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 16% resulting in a US$214m addition to the company’s market value. As a result, the stock they originally bought for US$1.61m is now worth US$2.45m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Alphatec Holdings

The Last 12 Months Of Insider Transactions At Alphatec Holdings

Over the last year, we can see that the biggest insider sale was by the General Counsel & Corporate Secretary, Tyson Marshall, for US$547k worth of shares, at about US$10.88 per share. So we know that an insider sold shares at around the present share price of US$10.88. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Tyson Marshall.

In the last twelve months insiders purchased 224.80k shares for US$1.6m. On the other hand they divested 50.23k shares, for US$547k. Overall, Alphatec Holdings insiders were net buyers during the last year. Their average price was about US$7.17. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Alphatec Holdings insiders own 12% of the company, worth about US$171m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Alphatec Holdings Insider Transactions Indicate?

The fact that there have been no Alphatec Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Alphatec Holdings insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Alphatec Holdings and we suggest you have a look.

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.