Investors often monitor insider buying activity to gauge executive confidence in a company's stock. When executives, board members, or major shareholders purchase shares, it suggests they believe the stock price will rise. This insider optimism can be a bullish indicator for other investors.
However, recent insider buying seen in Alphatec Holdings (ATEC) stock may on the surface look baffling to market participants. Down 63.6% on a YTD basis, the company's share price has moved into the penny stock category this year.
