Form 4: Alphatec Holdings CEO Sells Shares Under 10b5-1 Plan

Alphatec Holdings CEO, Patrick Miles, sold 100,000 shares of common stock under a pre-arranged 10b5-1 trading plan to cover tax obligations.

Summary

• Patrick Miles, CEO of Alphatec Holdings, sold 100,000 shares of common stock in two transactions on November 20 and 21, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on June 13, 2024, to cover tax obligations related to vesting restricted stock units.
• On November 20, 50,000 shares were sold at a weighted average price of $10.03 per share.
• On November 21, another 50,000 shares were sold at a weighted average price of $10.09 per share.
• Following these transactions, Miles directly owns 5,508,402 shares of common stock.
• Miles also indirectly owns 10,900 shares through an IRA and 250,000 shares through MOM, LLC.

Sentiment

Score: 5

Explanation: The document reflects a routine transaction under a pre-arranged plan, so it is neutral. There is no indication of positive or negative sentiment.

Risks

• Sales by insiders, even under a 10b5-1 plan, can sometimes be perceived negatively by the market.

Industry Context

Insider sales are a common occurrence, especially when executives have stock-based compensation. The use of a 10b5-1 plan is a standard practice to avoid accusations of trading on inside information.

Comparison to Industry Standards

• Many executives at publicly traded companies use 10b5-1 plans to manage their stock sales, particularly when dealing with stock options or restricted stock units.
• The sale of 100,000 shares by the CEO is not unusual for a company of Alphatec's size, and the use of a 10b5-1 plan is a common practice to avoid any appearance of impropriety.
• Comparable companies in the medical device sector often see similar insider transactions, especially around vesting periods.

Stakeholder Impact

• The sale of shares by the CEO could have a minor negative impact on shareholder sentiment, although the use of a 10b5-1 plan mitigates this concern.

Key Dates

Keywords

Alphatec Holdings, ATEC, Patrick Miles, insider trading, Form 4, Rule 10b5-1, stock sale, CEO, tax obligations