JPMorgan Chase raises stake in Alphatec Holdings by 30.5%

Investment banking giant JPMorgan Chase & Co. has announced that it lifted its stake in Alphatec Holdings, Inc. (NASDAQ: ATEC) by 30.5% during the fourth quarter of 2023. The move comes amid rising confidence in the medical technology company’s spinal fusion products and solutions, with Alphatec offering a wide range of intra-operative information and neuromonitoring technologies, access systems, interbody implants, fixation systems, and biologics.

At the end of the reporting period, JPMorgan Chase & Co. owned 2,071,701 shares in Alphatec Holdings – equivalent to 1.97% of the firm’s entire portfolio – with an estimated worth of $25,586,000. This represents a rise from earlier analyst assessments, which suggested that Alphatec stock was overvalued at less than $16 per share.

Of course, opinions can vary significantly among industry observers; while JPMorgan is bullish on Alphatec’s prospects for growth and profitability in the short and medium-term future, other firms have taken a more pessimistic view.

For example, StockNews.com downgraded Alphatec’s rating from “hold” to “sell” last Saturday citing concerns about headwinds facing its core business segment as well as limited opportunities for diversification to boost earnings power.

Despite such misgivings from some quarters though there remains broad support for the firm’s long-term outlook among many lead researchers. Indeed healthcare equity specialists Needham & Company LLC reiterated a “buy” rating for Alphatec stock based on favorable market trends emerging across North America during April this year alone – underlining their continued faith in the company’s tracking record when it comes spinal fusion technology products development.

Furthermore HC Wainwright joined Needham on Wednesday March 1st by restating their “buy” rating on the company’s shares, setting a $20 price target that remains in line with the market valuation estimates se by JPMorgan Chase & Co. Morgan Stanley also weighed in at this time, boosting its own price projection from an original $17 to $18 while flagging the stock as an overweight beneficiary of recent healthcare sector trends.

Overall, it would seem that despite some hesitancy about the future of spinal fusion technologies and Alphatec’s ability to remain competitive within in its market niche, experienced equity analysts tend to agree that Alphatec could represent a solid investment proposition worthy of patient gains for investors seeking exposure to medical technology firms operating across multiple channels and deploying state-of-the-art intr- and post-operative monitoring services.

Alphatec Holdings, Inc. is a medical technology company that designs, develops and markets spinal fusion technology products and solutions for the treatment of spinal disorders. The company offers various biologic options, fixation systems, interbody implants, access systems and intra-operative information and neuromonitoring technologies.

The company’s recent developments have caught the attention of several hedge funds and institutional investors. In particular, Russell Investments Group Ltd., First Light Asset Management LLC, Cubist Systematic Strategies LLC, Altium Capital Management LP, and Waypoint Capital Advisors LLC have all increased their stakes in Alphatec while others have reduced their positions.

Russell Investments Group Ltd alone has grown its holdings in shares of Alphatec by a staggering 859% during the fourth quarter to now own 486,412 shares worth $6.07 million after purchasing an additional 435,693 shares last quarter. Firstly Light Asset Management also lifted its position in shares of Alphatec by 16.9%, with assets totaling 2,718,120 shares valued at $31.26 million after acquiring an additional 392,635 shares in the last quarter. Meanwhile Cube Systematic Strategies increased its stake by 327%, finally bringing up Altium Capital Management LP which bought into Alphataec during Q3 with Waypoint following suit during Q4.

In addition to these investor updates report that insiders have been selling significant portions of their holdings; EVP Craig E. Hunsaker sold over $897k worth of stock whilst CFO John Todd Koning saw fit to sell more than $270k worth back in April.

Shares of NASDAQ:ATEC opened at $15.12 on June 12th; fluctuating significantly between a 12 month low of $5.73 and a high of $17.13 the firm currently boasts a market capitalization of roughly $1.79 billion along with negative TTM earnings per share of $-1.44 and a free cashflow number of $41.4m.

Alphatec last released its earnings results on Thursday, May 4th. With revenue of $109.11 million during the quarter, Alphatec failed to meet consensus estimates for the quarter by 1.01%, whilst also falling short on EPS by ($0.08). The firm maintains a large net margin deficit currently sitting at negative 39.28%, with a return on equity of negative 575%. While these numbers don’t provide immediate assurance to investors, research analysts still anticipate that Alphatec Holdings, Inc., despite recent losses, has promising potential with future market growth opportunities based in its various biologic offerings and intra-operative technology advances capable of outstripping current costly alternatives. Best Stocks