Form 4: Squadron Capital Sells ATEC Shares

Squadron Capital LLC, a 10% owner and director, reported the sale of 250,000 shares of Alphatec Holdings, Inc. common stock for approximately $5.15 million.

Summary

• Squadron Capital LLC, identified as both a Director and a 10% Owner of Alphatec Holdings, Inc. (ATEC), reported the sale of 250,000 shares of the company's common stock.
• The transaction occurred on November 24, 2025.
• The shares were sold at a weighted average price of $20.62 per share, with individual transaction prices ranging from $20.34 to $20.79.
• The total value of the shares sold is approximately $5,155,000.
• Following this transaction, Squadron Capital LLC beneficially owns 10,895,045 shares of Alphatec Holdings, Inc. common stock.
• The sale was conducted pursuant to a Rule 10b5-1(c) trading plan, indicating a pre-arranged transaction.

Sentiment

Score: 3

Explanation: The sale of a significant number of shares by a 10% owner and director is generally viewed negatively by the market. While the use of a Rule 10b5-1 plan mitigates some of the immediate negative interpretation by indicating a pre-scheduled transaction, it still represents a reduction in insider ownership.

Positives

• The sale was executed under a Rule 10b5-1 trading plan, which suggests the transaction was pre-scheduled and not based on immediate, undisclosed material information.

Negatives

• A significant sale of 250,000 shares by a 10% owner and director could be perceived negatively by the market, potentially signaling a lack of confidence or a desire to diversify holdings.

Risks

• There is a potential for negative market reaction to the significant insider sale by a 10% owner and director, which could lead to downward pressure on Alphatec Holdings, Inc.'s stock price.

Future Outlook

The filing reports a completed insider transaction and does not provide specific forward-looking statements or guidance from the company. The use of a Rule 10b5-1 plan indicates that the sale was part of a pre-arranged trading strategy.

Management Comments

• "The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $20.34 to $20.79, inclusive. The reporting person undertakes to provide to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the ranges set forth in this footnote."

Industry Context

This insider trading report reflects a specific transaction by a significant shareholder and director. While not directly tied to broader industry trends, substantial insider sales can sometimes be interpreted by the market in the context of the company's position within its sector or general market sentiment.

Related Party Transactions

• The reported transaction is a related party dealing, involving the sale of common stock by Squadron Capital LLC, which is a 10% owner and director of Alphatec Holdings, Inc.

Stakeholder Impact

• Shareholders: May perceive the insider sale as a negative signal, potentially leading to downward pressure on the stock price or increased investor caution.
• Management/Board: The sale by a director could prompt internal discussions regarding confidence, although the 10b5-1 plan provides a standard explanation for the transaction.

Next Steps

• The reporting person has undertaken to provide full information regarding the number of shares sold at each separate price within the reported range upon request to the issuer, any security holder, or the SEC staff.

Key Dates

Recommendation

A substantial sale of 250,000 shares by Squadron Capital LLC, a 10% owner and director, suggests a reduction in conviction or a view that the current valuation is attractive for selling. While executed under a 10b5-1 plan, which implies pre-planning, such a large insider divestment typically warrants a cautious stance, potentially indicating limited upside or a belief that the stock may face headwinds. Investors might consider this a signal to reduce exposure or avoid initiating new positions.

Keywords

Alphatec Holdings, ATEC, Squadron Capital, Insider Sale, Form 4, Beneficial Ownership, 10b5-1 Plan, Director Sale, 10% Owner