Allegro MicroSystems (NASDAQ:ALGM) Trading 3.5% Higher – Here’s Why

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares rose 3.5% during trading on Wednesday . The company traded as high as $20.89 and last traded at $20.89. Approximately 251,410 shares changed hands during trading, a decline of 87% from the average daily volume of 1,916,370 shares. The stock had previously closed at $20.19.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. Mizuho set a $26.00 price objective on shares of Allegro MicroSystems in a report on Friday, October 18th. Needham & Company LLC reiterated a “buy” rating and set a $33.00 price objective on shares of Allegro MicroSystems in a research note on Friday, August 2nd. Finally, UBS Group began coverage on Allegro MicroSystems in a research report on Tuesday, September 3rd. They issued a “buy” rating and a $33.00 target price for the company. Eight investment analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $33.38.

Allegro MicroSystems Stock Up 3.7 %

The business’s 50 day simple moving average is $22.55 and its 200 day simple moving average is $26.13. The company has a market capitalization of $4.18 billion, a PE ratio of 27.67 and a beta of 1.67. The company has a quick ratio of 2.98, a current ratio of 4.65 and a debt-to-equity ratio of 0.18.

Allegro MicroSystems (NASDAQ:ALGM) last announced its earnings results on Thursday, August 1st. The company reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.01. The company had revenue of $166.90 million for the quarter, compared to the consensus estimate of $165.04 million. Allegro MicroSystems had a net margin of 7.91% and a return on equity of 13.88%. The company’s revenue was down 40.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.34 EPS. As a group, analysts forecast that Allegro MicroSystems, Inc. will post 0.16 EPS for the current year.

Insider Activity

In other Allegro MicroSystems news, major shareholder Electric Co. Ltd. Sanken sold 10,017,315 shares of the company’s stock in a transaction that occurred on Wednesday, August 7th. The shares were sold at an average price of $23.16, for a total value of $232,001,015.40. Following the transaction, the insider now owns 59,732,782 shares in the company, valued at approximately $1,383,411,231.12. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc increased its position in Allegro MicroSystems by 1,957.1% during the second quarter. Versant Capital Management Inc now owns 1,152 shares of the company’s stock worth $33,000 after buying an additional 1,096 shares during the last quarter. GAMMA Investing LLC raised its position in shares of Allegro MicroSystems by 52.2% in the second quarter. GAMMA Investing LLC now owns 1,759 shares of the company’s stock valued at $50,000 after purchasing an additional 603 shares during the period. CWM LLC boosted its holdings in shares of Allegro MicroSystems by 27.7% during the 2nd quarter. CWM LLC now owns 4,241 shares of the company’s stock worth $120,000 after buying an additional 921 shares during the period. Oppenheimer Asset Management Inc. acquired a new position in Allegro MicroSystems in the 2nd quarter valued at $211,000. Finally, PNC Financial Services Group Inc. lifted its position in Allegro MicroSystems by 84.2% during the 4th quarter. PNC Financial Services Group Inc. now owns 7,530 shares of the company’s stock worth $228,000 after acquiring an additional 3,442 shares during the last quarter. Institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc, together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers.