Allegro MicroSystems (NASDAQ:ALGM) Stock Price Down 9.6% – Time to Sell?

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s stock price was down 9.6% during mid-day trading on Tuesday . The company traded as low as $40.27 and last traded at $40.0160. Approximately 375,367 shares were traded during mid-day trading, a decline of 85% from the average session volume of 2,574,270 shares. The stock had previously closed at $44.25.

Analysts Set New Price Targets

A number of brokerages have recently commented on ALGM. Benchmark began coverage on shares of Allegro MicroSystems in a report on Wednesday, August 12th. They set a “buy” rating and a $60.00 price target for the company. Mizuho decreased their target price on shares of Allegro MicroSystems from $67.00 to $58.00 and set an “outperform” rating on the stock in a research report on Friday, July 31st. Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research note on Sunday, August 2nd. UBS Group boosted their price target on Allegro MicroSystems from $52.00 to $55.00 and gave the company a “buy” rating in a report on Friday, May 8th. Finally, Needham & Company LLC increased their price target on Allegro MicroSystems from $55.00 to $57.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $53.45.

Allegro MicroSystems Trading Down 2.6%

The business’s fifty day moving average is $50.13 and its 200-day moving average is $43.49. The stock has a market capitalization of $7.15 billion, a PE ratio of 639.27, a P/E/G ratio of 1.24 and a beta of 1.94. The company has a quick ratio of 2.33, a current ratio of 3.70 and a debt-to-equity ratio of 0.30.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.02. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The company had revenue of $259.24 million for the quarter, compared to the consensus estimate of $251.44 million. During the same quarter last year, the firm posted $0.09 earnings per share. Allegro MicroSystems’s revenue was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. As a group, analysts anticipate that Allegro MicroSystems, Inc. will post 0.65 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Erin Hagen sold 2,285 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $44.39, for a total value of $101,431.15. Following the transaction, the senior vice president directly owned 31,052 shares in the company, valued at $1,378,398.28. This trade represents a 6.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Richard Madormo sold 5,000 shares of Allegro MicroSystems stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total value of $263,600.00. Following the completion of the transaction, the senior vice president directly owned 69,687 shares in the company, valued at $3,673,898.64. This represents a 6.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Allegro MicroSystems

Large investors have recently made changes to their positions in the business. Van ECK Associates Corp raised its stake in shares of Allegro MicroSystems by 68.8% in the 2nd quarter. Van ECK Associates Corp now owns 70,504 shares of the company’s stock valued at $4,908,000 after acquiring an additional 28,738 shares during the period. Braun Stacey Associates Inc. acquired a new stake in Allegro MicroSystems in the 2nd quarter valued at $25,515,000. Hsbc Holdings PLC increased its holdings in Allegro MicroSystems by 46.3% in the 2nd quarter. Hsbc Holdings PLC now owns 26,862 shares of the company’s stock valued at $1,870,000 after purchasing an additional 8,507 shares in the last quarter. Wellington Management Group LLP raised its position in Allegro MicroSystems by 21.1% in the second quarter. Wellington Management Group LLP now owns 814,937 shares of the company’s stock valued at $56,736,000 after purchasing an additional 141,841 shares during the period. Finally, United Capital Financial Advisors LLC acquired a new position in shares of Allegro MicroSystems during the second quarter worth about $238,000. Institutional investors and hedge funds own 56.45% of the company’s stock.

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.