Allegro MicroSystems (NASDAQ:ALGM) Stock Price Down 10.8% – Here’s What Happened

Allegro MicroSystems, Inc. (NASDAQ:ALGM) dropped 10.8% on Thursday. The company traded as low as $32.20 and last traded at $31.5550. 492,638 shares were traded during mid-day trading, a decline of 81% from the average session volume of 2,609,451 shares. The stock had previously closed at $35.37.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ALGM. Royal Bank Of Canada assumed coverage on Allegro MicroSystems in a report on Friday, October 2nd. They issued an “outperform” rating and a $50.00 price objective for the company. Mizuho cut their target price on shares of Allegro MicroSystems from $67.00 to $58.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Weiss Ratings downgraded shares of Allegro MicroSystems from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 23rd. Barclays downgraded shares of Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price target for the company. in a research report on Monday, July 20th. Finally, Morgan Stanley increased their price target on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Allegro MicroSystems currently has an average rating of “Moderate Buy” and an average price target of $51.58.

Allegro MicroSystems Price Performance

The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.33 and a current ratio of 3.70. The company has a 50-day simple moving average of $35.33 and a 200-day simple moving average of $40.65. The company has a market cap of $6.01 billion, a price-to-earnings ratio of 537.32, a PEG ratio of 0.99 and a beta of 1.99.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings results on Thursday, October 29th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.24 by $0.02. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%. The business had revenue of $276.88 million during the quarter, compared to analysts’ expectations of $270.86 million. During the same period last year, the firm earned $0.13 EPS. The company’s quarterly revenue was up 29.2% compared to the same quarter last year. As a group, research analysts predict that Allegro MicroSystems, Inc. will post 0.65 earnings per share for the current year.

Insider Transactions at Allegro MicroSystems

In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the firm’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $44.39, for a total value of $101,431.15. Following the completion of the sale, the senior vice president owned 31,052 shares of the company’s stock, valued at approximately $1,378,398.28. This trade represents a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently made changes to their positions in ALGM. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Allegro MicroSystems in the 3rd quarter valued at about $379,000. ProShare Advisors LLC boosted its holdings in Allegro MicroSystems by 36.6% during the third quarter. ProShare Advisors LLC now owns 18,312 shares of the company’s stock worth $666,000 after buying an additional 4,905 shares in the last quarter. Vise Technologies Inc. boosted its holdings in Allegro MicroSystems by 120.5% during the third quarter. Vise Technologies Inc. now owns 9,915 shares of the company’s stock worth $360,000 after buying an additional 5,419 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al grew its position in Allegro MicroSystems by 106.9% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 48,569 shares of the company’s stock worth $1,765,000 after buying an additional 25,100 shares during the period. Finally, Signaturefd LLC grew its position in Allegro MicroSystems by 51.3% during the third quarter. Signaturefd LLC now owns 1,070 shares of the company’s stock worth $39,000 after buying an additional 363 shares during the period. 56.45% of the stock is owned by institutional investors and hedge funds.

About Allegro MicroSystems

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.