Allegro MicroSystems Target of Unusually Large Options Trading (NASDAQ:ALGM)

Allegro MicroSystems, Inc. (NASDAQ:ALGM) was the target of some unusual options trading activity on Wednesday. Traders bought 18,618 put options on the stock. This is an increase of 762% compared to the average volume of 2,161 put options.

Insider Activity at Allegro MicroSystems

In other news, major shareholder Electric Co. Ltd. Sanken sold 28,750,000 shares of the company’s stock in a transaction dated Monday, July 29th. The stock was sold at an average price of $23.16, for a total transaction of $665,850,000.00. Following the completion of the transaction, the insider now directly owns 69,750,097 shares of the company’s stock, valued at $1,615,412,246.52. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Ecofi Investissements SA acquired a new stake in Allegro MicroSystems during the second quarter worth approximately $2,349,000. Creative Planning lifted its holdings in Allegro MicroSystems by 25.6% during the 2nd quarter. Creative Planning now owns 17,349 shares of the company’s stock worth $490,000 after purchasing an additional 3,540 shares during the last quarter. Algert Global LLC boosted its stake in Allegro MicroSystems by 26.8% in the 2nd quarter. Algert Global LLC now owns 25,744 shares of the company’s stock valued at $727,000 after purchasing an additional 5,444 shares during the period. The Manufacturers Life Insurance Company grew its holdings in Allegro MicroSystems by 15.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,148,478 shares of the company’s stock valued at $60,673,000 after buying an additional 285,747 shares in the last quarter. Finally, Dark Forest Capital Management LP bought a new position in Allegro MicroSystems during the 2nd quarter worth $363,000. Institutional investors and hedge funds own 56.45% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have commented on ALGM shares. Needham & Company LLC reissued a “buy” rating and set a $33.00 price target on shares of Allegro MicroSystems in a research report on Friday, August 2nd. TD Cowen raised their price target on Allegro MicroSystems from $32.00 to $35.00 and gave the company a “buy” rating in a research note on Thursday, June 13th. Finally, UBS Group started coverage on Allegro MicroSystems in a report on Tuesday, September 3rd. They issued a “buy” rating and a $33.00 price objective for the company. One research analyst has rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $34.44.

Allegro MicroSystems Stock Performance

ALGM opened at $23.79 on Friday. The company has a quick ratio of 2.98, a current ratio of 4.65 and a debt-to-equity ratio of 0.18. Allegro MicroSystems has a 12-month low of $20.42 and a 12-month high of $33.42. The business has a 50 day moving average of $24.68 and a 200-day moving average of $27.28. The stock has a market cap of $4.61 billion, a price-to-earnings ratio of 30.50 and a beta of 1.68.

Allegro MicroSystems (NASDAQ:ALGM) last announced its quarterly earnings results on Thursday, August 1st. The company reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.01. Allegro MicroSystems had a return on equity of 13.88% and a net margin of 7.91%. The business had revenue of $166.90 million during the quarter, compared to the consensus estimate of $165.04 million. During the same quarter last year, the firm posted $0.34 EPS. The company’s quarterly revenue was down 40.0% on a year-over-year basis. On average, equities research analysts expect that Allegro MicroSystems will post 0.16 earnings per share for the current year.

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; power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers; and photonic and advanced 3D sensing components.