Some Alphatec Holdings, Inc. (NASDAQ:ATEC) shareholders may be a little concerned to see that the General Counsel & Corporate Secretary, Tyson Marshall, recently sold a substantial US$547k worth of stock at a price of US$10.88 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.
Alphatec Holdings Insider Transactions Over The Last Year
Notably, that recent sale by Tyson Marshall is the biggest insider sale of Alphatec Holdings shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$10.66. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 68.75k shares worth US$832k. But insiders sold 94.73k shares worth US$1.2m. All up, insiders sold more shares in Alphatec Holdings than they bought, over the last year. They sold for an average price of about US$12.67. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$10.66). The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alphatec Holdings insiders own 12% of the company, currently worth about US$178m 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.
So What Do The Alphatec Holdings Insider Transactions Indicate?
An insider hasn't bought Alphatec Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Alphatec Holdings has 4 warning signs and it would be unwise to ignore these.
Of course Alphatec Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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