Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Up – Should You Buy?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) gapped up before the market opened on Monday . The stock had previously closed at $22.30, but opened at $26.75. Allegro MicroSystems shares last traded at $26.78, with a volume of 2,938,789 shares traded.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ALGM. Barclays raised their target price on Allegro MicroSystems from $25.00 to $30.00 and gave the stock an “overweight” rating in a research report on Friday, January 17th. Morgan Stanley boosted their target price on Allegro MicroSystems from $21.00 to $23.00 and gave the company an “equal weight” rating in a research report on Monday, February 3rd. Loop Capital began coverage on shares of Allegro MicroSystems in a research note on Tuesday, November 12th. They issued a “buy” rating and a $30.00 price objective on the stock. Needham & Company LLC reissued a “buy” rating and set a $30.00 price objective on shares of Allegro MicroSystems in a report on Monday, February 24th. Finally, Wells Fargo & Company increased their price objective on shares of Allegro MicroSystems from $23.00 to $27.00 and gave the company an “overweight” rating in a research note on Monday, January 13th. One equities research analyst has rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Allegro MicroSystems presently has a consensus rating of “Moderate Buy” and a consensus target price of $30.70.

Allegro MicroSystems Stock Up 17.7 %

The company’s 50-day simple moving average is $23.90 and its two-hundred day simple moving average is $22.69. The company has a debt-to-equity ratio of 0.40, a current ratio of 4.91 and a quick ratio of 3.00. The firm has a market capitalization of $4.83 billion, a P/E ratio of -74.91 and a beta of 1.66.

Hedge Funds Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Polar Asset Management Partners Inc. increased its holdings in shares of Allegro MicroSystems by 47.1% in the 4th quarter. Polar Asset Management Partners Inc. now owns 378,704 shares of the company’s stock valued at $8,278,000 after acquiring an additional 121,300 shares during the period. Mackenzie Financial Corp raised its position in shares of Allegro MicroSystems by 2.8% in the fourth quarter. Mackenzie Financial Corp now owns 18,192 shares of the company’s stock worth $398,000 after acquiring an additional 491 shares during the period. Toronto Dominion Bank grew its stake in Allegro MicroSystems by 20.5% in the 4th quarter. Toronto Dominion Bank now owns 19,085 shares of the company’s stock valued at $417,000 after acquiring an additional 3,253 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Allegro MicroSystems by 38.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 269,003 shares of the company’s stock valued at $5,880,000 after acquiring an additional 74,681 shares in the last quarter. Finally, Woodline Partners LP boosted its position in Allegro MicroSystems by 18.4% during the fourth quarter. Woodline Partners LP now owns 1,833,705 shares of the company’s stock worth $40,085,000 after acquiring an additional 285,573 shares during the last quarter. Hedge funds and other institutional investors own 56.45% of the company’s stock.

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.