Allegro MicroSystems, Inc. (NASDAQ:ALGM) Sees Large Drop in Short Interest

Allegro MicroSystems, Inc. (NASDAQ:ALGM) was the target of a significant drop in short interest during the month of December. As of December 15th, there was short interest totalling 11,400,000 shares, a drop of 12.0% from the November 30th total of 12,950,000 shares. Based on an average daily volume of 1,970,000 shares, the short-interest ratio is currently 5.8 days. Approximately 9.3% of the shares of the company are sold short.

Insiders Place Their Bets

In other Allegro MicroSystems news, SVP Michael Doogue bought 15,000 shares of Allegro MicroSystems stock in a transaction on Monday, November 18th. The stock was acquired at an average cost of $19.00 per share, with a total value of $285,000.00. Following the completion of the acquisition, 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. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ALGM. KBC Group NV lifted its position in Allegro MicroSystems by 40.9% during the third quarter. KBC Group NV now owns 3,590 shares of the company’s stock valued at $84,000 after purchasing an additional 1,042 shares during the last quarter. Van ECK Associates Corp bought a new position in shares of Allegro MicroSystems in the 3rd quarter valued at about $172,000. Oppenheimer Asset Management Inc. purchased a new position in Allegro MicroSystems in the second quarter worth about $211,000. Intech Investment Management LLC purchased a new position in shares of Allegro MicroSystems in the 3rd quarter worth approximately $214,000. Finally, nVerses Capital LLC purchased a new position in Allegro MicroSystems during the third quarter worth $231,000. 56.45% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently commented on ALGM shares. Loop Capital initiated coverage on Allegro MicroSystems in a report on Tuesday, November 12th. They issued a “buy” rating and a $30.00 target price on the stock. Needham & Company LLC lowered their price objective on Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Thursday, October 31st. Wells Fargo & Company assumed coverage on Allegro MicroSystems in a research note on Friday, November 22nd. They set an “overweight” rating and a $23.00 price objective for the company. UBS Group started coverage on shares of Allegro MicroSystems in a research note on Tuesday, September 3rd. They set a “buy” rating and a $33.00 target price on the stock. Finally, Barclays dropped their price target on shares of Allegro MicroSystems from $32.00 to $25.00 and set an “overweight” rating for the company in a research report on Friday, November 1st. One research analyst has rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat, Allegro MicroSystems currently has a consensus rating of “Moderate Buy” and an average price target of $30.09.

Allegro MicroSystems Price Performance

ALGM traded up $0.02 during trading on Friday, hitting $22.29. 1,352,192 shares of the company traded hands, compared to its average volume of 1,948,424. The company has a market cap of $4.10 billion, a PE ratio of -159.20 and a beta of 1.67. Allegro MicroSystems has a 1 year low of $18.59 and a 1 year high of $33.26. 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 stock’s 50-day simple moving average is $21.38 and its two-hundred day simple moving average is $23.74.

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

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.