Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Up – Should You Buy?

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares gapped up before the market opened on Tuesday . The stock had previously closed at $22.33, but opened at $22.78. Allegro MicroSystems shares last traded at $22.34, with a volume of 516,484 shares changing hands.

Analyst Upgrades and Downgrades

ALGM has been the subject of a number of recent analyst reports. Mizuho set a $26.00 price target on Allegro MicroSystems in a research report on Friday, October 18th. Barclays lowered their price target on Allegro MicroSystems from $32.00 to $25.00 and set an “overweight” rating for the company in a research report on Friday, November 1st. Loop Capital initiated coverage on Allegro MicroSystems in a research report on Tuesday, November 12th. They set a “buy” rating and a $30.00 price target for the company. Needham & Company LLC lowered their price target on Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating for the company in a research report on Thursday, October 31st. Finally, Morgan Stanley assumed coverage on Allegro MicroSystems in a research report on Thursday, November 7th. They issued an “equal weight” rating and a $21.00 target price for the company. One equities research analyst has rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $30.09.

Allegro MicroSystems Price Performance

The company has a current ratio of 4.22, a quick ratio of 2.80 and a debt-to-equity ratio of 0.42. The company has a market cap of $4.03 billion, a PE ratio of -159.49 and a beta of 1.69. The firm has a 50 day moving average of $21.49 and a two-hundred day moving average of $25.01.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings results on Thursday, October 31st. The company reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.02. The company had revenue of $187.39 million for the quarter, compared to the consensus estimate of $187.52 million. Allegro MicroSystems had a positive return on equity of 8.48% and a negative net margin of 2.96%. The firm’s quarterly revenue was down 32.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.36 EPS.

Insider Buying and Selling at Allegro MicroSystems

In other news, SVP Michael Doogue purchased 15,000 shares of the stock in a transaction dated Monday, November 18th. The shares were purchased at an average cost of $19.00 per share, with a total value of $285,000.00. Following the acquisition, the senior vice president now directly owns 246,086 shares of the company’s stock, valued at $4,675,634. This represents a 6.49 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently modified their holdings of ALGM. Versant Capital Management Inc raised its holdings in Allegro MicroSystems by 1,957.1% in the 2nd quarter. Versant Capital Management Inc now owns 1,152 shares of the company’s stock worth $33,000 after purchasing an additional 1,096 shares during the period. GAMMA Investing LLC raised its holdings in Allegro MicroSystems by 52.2% in the 2nd quarter. GAMMA Investing LLC now owns 1,759 shares of the company’s stock worth $50,000 after purchasing an additional 603 shares during the period. KBC Group NV raised its holdings in Allegro MicroSystems by 40.9% in the 3rd quarter. KBC Group NV now owns 3,590 shares of the company’s stock worth $84,000 after purchasing an additional 1,042 shares during the period. CWM LLC raised its holdings in Allegro MicroSystems by 27.7% in the 2nd quarter. CWM LLC now owns 4,241 shares of the company’s stock worth $120,000 after purchasing an additional 921 shares during the period. Finally, Van ECK Associates Corp bought a new stake in Allegro MicroSystems during the third quarter valued at about $172,000. 56.45% of the stock is owned by institutional investors.

About Allegro MicroSystems

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.