Form 4: Alphatec Holdings CEO Sells Shares to Cover Tax Obligations

Alphatec Holdings CEO Patrick Miles sold shares of ATEC common stock to cover tax withholding obligations related to vesting restricted stock units, while also reporting holdings through an IRA and MOM, LLC.

Summary

• On February 24, 2025, Alphatec Holdings CEO Patrick Miles had 92,988 shares withheld by the issuer to cover tax obligations from vesting restricted stock units at a price of $10.76.
• On February 26, 2025, Miles sold 32,393 shares of common stock at a weighted average price of $10.89, ranging from $10.50 to $11.05, also to satisfy tax withholding obligations.
• Following these transactions, Miles directly owns 5,940,391 shares of Alphatec Holdings.
• Miles also indirectly owns 10,900 shares through an IRA and 250,000 shares through MOM, LLC.
• The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on June 13, 2024.

Sentiment

Score: 6

Explanation: Neutral sentiment as the transactions appear to be routine and related to tax obligations under a pre-existing trading plan. The CEO still holds a significant number of shares.

Positives

• The sales were conducted under a pre-arranged 10b5-1 trading plan, which can reassure investors that the transactions were not based on insider information.

Negatives

• The sale of shares by the CEO, even for tax obligations, could be perceived negatively by some investors.

Risks

• Further sales by the CEO could put downward pressure on the stock price.

Industry Context

Sales of shares by company executives are a common occurrence, often related to compensation and tax planning. The use of a 10b5-1 trading plan is a standard practice to avoid insider trading concerns.

Comparison to Industry Standards

• Comparing ATEC to similar medical device companies like NuVasive (now Globus Medical after merger) or Medtronic, executive compensation packages often include stock options and restricted stock units.
• Sales of shares to cover tax obligations are a typical part of executive financial planning across these companies.
• The use of 10b5-1 plans is a widely adopted practice among executives in publicly traded companies to ensure compliance with insider trading regulations.

Stakeholder Impact

• The stock sale could have a minor negative impact on shareholder sentiment in the short term.

Key Dates