Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down Following Weak Earnings

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $22.85, but opened at $22.15. Allegro MicroSystems shares last traded at $22.52, with a volume of 901,840 shares traded.

The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.04). Allegro MicroSystems had a negative net margin of 2.96% and a positive return on equity of 8.48%.

Analysts Set New Price Targets

Several analysts have recently issued reports on ALGM shares. Loop Capital started coverage on shares of Allegro MicroSystems in a research report on Tuesday, November 12th. They set a “buy” rating and a $30.00 target price on the stock. Needham & Company LLC lowered their target price on shares of Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating for the company in a report on Thursday, October 31st. Barclays raised their price objective 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. Mizuho set a $26.00 price objective on shares of Allegro MicroSystems in a report on Friday, October 18th. Finally, Wells Fargo & Company increased their price target on Allegro MicroSystems from $23.00 to $27.00 and gave the stock an “overweight” rating in a research report on Monday, January 13th. One investment analyst has rated the stock with a hold rating and ten have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $30.91.

Insiders Place Their Bets

In other Allegro MicroSystems news, SVP Michael Doogue purchased 15,000 shares of the stock in a transaction on Monday, November 18th. The stock was acquired at an average price 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 $4,675,634. The trade was a 6.49 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Envestnet Asset Management Inc. raised its holdings in shares of Allegro MicroSystems by 6.7% in the second quarter. Envestnet Asset Management Inc. now owns 101,459 shares of the company’s stock worth $2,865,000 after buying an additional 6,391 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Allegro MicroSystems by 45.0% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,282,122 shares of the company’s stock worth $36,207,000 after purchasing an additional 397,681 shares during the period. Hsbc Holdings PLC grew its holdings in Allegro MicroSystems by 13.6% in the second quarter. Hsbc Holdings PLC now owns 16,668 shares of the company’s stock valued at $471,000 after purchasing an additional 1,994 shares during the period. Sei Investments Co. increased its position in shares of Allegro MicroSystems by 3.2% in the second quarter. Sei Investments Co. now owns 165,882 shares of the company’s stock valued at $4,685,000 after buying an additional 5,068 shares in the last quarter. Finally, ProShare Advisors LLC raised its stake in shares of Allegro MicroSystems by 9.2% during the 2nd quarter. ProShare Advisors LLC now owns 13,280 shares of the company’s stock worth $375,000 after buying an additional 1,123 shares during the period. 56.45% of the stock is owned by hedge funds and other institutional investors.

Allegro MicroSystems Stock Up 2.7 %

The business has a 50-day moving average price of $22.55 and a 200-day moving average price of $22.81. The stock has a market cap of $4.32 billion, a PE ratio of -167.26 and a beta of 1.65. The company has a current ratio of 4.22, a quick ratio of 2.80 and a debt-to-equity ratio of 0.42.

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.