Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down – Here’s What Happened

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) gapped down prior to trading on Tuesday . The stock had previously closed at $46.80, but opened at $43.50. Allegro MicroSystems shares last traded at $42.4320, with a volume of 228,841 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on ALGM shares. Evercore reissued an “outperform” rating and issued a $53.00 target price on shares of Allegro MicroSystems in a research note on Friday, May 8th. Barclays lowered Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price target on the stock. in a research note on Monday, July 20th. Wall Street Zen cut Allegro MicroSystems from a “buy” rating to a “hold” rating in a report on Saturday. TD Cowen lowered their price objective on Allegro MicroSystems from $70.00 to $66.00 and set a “buy” rating for the company in a research report on Monday, July 13th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Nine analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $55.20.

Allegro MicroSystems Trading Down 5.1%

The business has a 50 day moving average of $51.96 and a 200 day moving average of $42.34. The firm has a market capitalization of $8.27 billion, a price-to-earnings ratio of -494.32 and a beta of 1.90. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21.

Allegro MicroSystems (NASDAQ:ALGM) last issued its earnings results on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01. The firm had revenue of $243.19 million for the quarter, compared to analysts’ expectations of $235.94 million. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The company’s revenue was up 26.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.06 earnings per share. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. As a group, research analysts predict that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, SVP Ian Kent sold 2,642 shares of Allegro MicroSystems stock in a transaction on Monday, May 18th. The shares were sold at an average price of $41.56, for a total transaction of $109,801.52. Following the transaction, the senior vice president directly owned 25,392 shares of the company’s stock, valued at $1,055,291.52. This trade represents a 9.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Roald Graham Webster sold 5,217 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the completion of the transaction, the chief accounting officer directly owned 13,106 shares of the company’s stock, valued at $588,197.28. This trade represents a 28.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Allegro MicroSystems

Large investors have recently modified their holdings of the business. Handelsbanken Fonder AB grew its position in shares of Allegro MicroSystems by 49.7% in the 2nd quarter. Handelsbanken Fonder AB now owns 59,900 shares of the company’s stock valued at $4,170,000 after purchasing an additional 19,900 shares during the period. Fulton Bank N.A. acquired a new stake in Allegro MicroSystems during the 2nd quarter worth approximately $322,000. Harbor Investment Advisory LLC bought a new position in Allegro MicroSystems in the second quarter valued at approximately $72,000. Parallel Advisors LLC lifted its stake in Allegro MicroSystems by 42.8% in the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after buying an additional 302 shares in the last quarter. Finally, Bank of America Corp DE boosted its holdings in shares of Allegro MicroSystems by 48.3% in the first quarter. Bank of America Corp DE now owns 855,453 shares of the company’s stock valued at $26,972,000 after buying an additional 278,798 shares during the period. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc (NASDAQ: ALGM) is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro’s product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.