This Insider Has Just Sold Shares In Alphatec Holdings

We wouldn't blame Alphatec Holdings, Inc. (NASDAQ:ATEC) shareholders if they were a little worried about the fact that Mortimer Berkowitz, the Independent Lead Director recently netted about US$998k selling shares at an average price of US$15.97. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.9%.

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The Last 12 Months Of Insider Transactions At Alphatec Holdings

In fact, the recent sale by Mortimer Berkowitz was the biggest sale of Alphatec Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$15.26. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Alphatec Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Alphatec Holdings

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Alphatec Holdings insiders own 9.6% of the company, currently worth about US$216m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Alphatec Holdings Insiders?

Insiders haven't bought Alphatec Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of 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. Case in point: We've spotted 1 warning sign for Alphatec Holdings you should be aware of.

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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.