Insider Buying: David Pelizzon Just Spent US$71k On Alphatec Holdings, Inc. (NASDAQ:ATEC) Shares

By
Simply Wall St
Published
November 12, 2021
NasdaqGS:ATEC
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that David Pelizzon, a Alphatec Holdings, Inc. (NASDAQ:ATEC) insider, recently shelled out US$71k to buy stock, at US$13.00 per share. However, it only increased their shares held by 2.0%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Alphatec Holdings

Alphatec Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Jennifer Pritzker for US$15m worth of shares, at about US$11.11 per share. That means that an insider was happy to buy shares at around the current price of US$11.60. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Alphatec Holdings insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$17m for 1.50m shares. But they sold 10.00k shares for US$148k. Overall, Alphatec Holdings insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:ATEC Insider Trading Volume November 13th 2021

Alphatec Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Alphatec Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Alphatec Holdings insiders own 13% of the company, currently worth about US$147m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Alphatec Holdings Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Alphatec Holdings. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Alphatec Holdings you should know about.

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, but not derivative transactions.

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