Bullish insiders at Alphatec Holdings, Inc. (NASDAQ:ATEC) loaded up on US$3.2m of stock earlier this year
Multiple insiders secured a larger position in Alphatec Holdings, Inc. (NASDAQ:ATEC) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
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 sale was by the Executive Chairman, Patrick Miles, for US$2.4m worth of shares, at about US$8.34 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$7.07. So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$3.2m for 286.02k shares. But insiders sold 354.60k shares worth US$3.1m. In total, Alphatec Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Alphatec Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Alphatec Holdings Have Sold Stock Recently
There was substantially more insider selling, than buying, of Alphatec Holdings shares over the last three months. In total, Executive Chairman Patrick Miles sold US$2.4m worth of shares in that time. Meanwhile insider Jennifer Pritzker bought US$83k worth. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Alphatec Holdings shares, worth about US$99m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Alphatec Holdings Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Alphatec Holdings, in the last three months. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. 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. For example - Alphatec Holdings has 4 warning signs we think you should be aware of.
But note: Alphatec Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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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.
