Allegro MicroSystems (NASDAQ:ALGM) Trading Down 5.1% – Here’s What Happened

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares fell 5.1% during trading on Monday . The stock traded as low as $22.16 and last traded at $22.86. 600,235 shares changed hands during mid-day trading, a decline of 75% from the average session volume of 2,441,887 shares. The stock had previously closed at $24.09.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on ALGM shares. Barclays upped their target price on shares of Allegro MicroSystems from $25.00 to $30.00 and gave the stock an “overweight” rating in a research note on Friday, January 17th. Loop Capital began coverage on Allegro MicroSystems in a research report on Tuesday, November 12th. They set a “buy” rating and a $30.00 price objective for the company. Morgan Stanley lifted their target price on Allegro MicroSystems from $21.00 to $23.00 and gave the company an “equal weight” rating in a research report on Monday. Mizuho set a $26.00 target price on Allegro MicroSystems in a research note on Friday, October 18th. Finally, Wells Fargo & Company raised their price target on shares of Allegro MicroSystems from $23.00 to $27.00 and gave the stock an “overweight” rating in a research note on Monday, January 13th. One analyst has rated the stock with a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $30.70.

Allegro MicroSystems Stock Performance

The company has a quick ratio of 3.00, a current ratio of 4.91 and a debt-to-equity ratio of 0.40. The stock’s fifty day moving average is $22.67 and its two-hundred day moving average is $22.63. The firm has a market capitalization of $4.20 billion, a price-to-earnings ratio of -65.35 and a beta of 1.66.

Allegro MicroSystems (NASDAQ:ALGM) last issued its earnings results on Thursday, October 31st. The company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.02. Allegro MicroSystems had a negative net margin of 8.45% and a positive return on equity of 4.31%. The company had revenue of $187.39 million for the quarter, compared to analysts’ expectations of $187.52 million. During the same period in the prior year, the firm earned $0.36 EPS. Allegro MicroSystems’s quarterly revenue was down 32.0% compared to the same quarter last year.

Insider Buying and Selling at Allegro MicroSystems

In related news, SVP Michael Doogue purchased 15,000 shares of the firm’s stock in a transaction that occurred on Monday, November 18th. The shares were acquired at an average price of $19.00 per share, for a total transaction of $285,000.00. Following the purchase, the senior vice president now owns 246,086 shares in the company, valued at approximately $4,675,634. This represents a 6.49 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Several institutional investors and hedge funds have recently made changes to their positions in ALGM. FMR LLC raised its stake in Allegro MicroSystems by 43.3% in the 3rd quarter. FMR LLC now owns 28,253,811 shares of the company’s stock worth $658,314,000 after purchasing an additional 8,534,089 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Allegro MicroSystems by 20.6% during the third quarter. JPMorgan Chase & Co. now owns 11,023,628 shares of the company’s stock worth $256,851,000 after purchasing an additional 1,884,578 shares during the period. State Street Corp raised its position in shares of Allegro MicroSystems by 41.7% in the third quarter. State Street Corp now owns 5,486,289 shares of the company’s stock valued at $127,831,000 after buying an additional 1,615,351 shares in the last quarter. Wellington Management Group LLP bought a new stake in shares of Allegro MicroSystems in the third quarter valued at approximately $71,289,000. Finally, Geode Capital Management LLC grew its position in Allegro MicroSystems by 86.5% during the third quarter. Geode Capital Management LLC now owns 2,561,482 shares of the company’s stock worth $59,699,000 after buying an additional 1,187,792 shares in the last quarter. Institutional investors and hedge funds own 56.45% of the company’s stock.

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.