Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down – Here’s Why

Allegro MicroSystems, Inc. (NASDAQ:ALGM) gapped down before the market opened on Wednesday . The stock had previously closed at $41.69, but opened at $39.75. Allegro MicroSystems shares last traded at $38.63, with a volume of 1,940,546 shares traded.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. TD Cowen boosted their target price on Allegro MicroSystems from $38.00 to $45.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. Evercore boosted their price objective on shares of Allegro MicroSystems from $37.00 to $49.00 and gave the company an “outperform” rating in a report on Friday, October 31st. Bank of America lifted their target price on Allegro MicroSystems from $36.00 to $39.00 and gave the stock a “buy” rating in a report on Wednesday, January 21st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Allegro MicroSystems in a report on Monday, December 29th. Finally, Barclays upped their price objective on shares of Allegro MicroSystems from $35.00 to $46.00 and gave the company an “overweight” rating in a report on Friday, January 30th. Ten equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $44.40.

Allegro MicroSystems Stock Down 7.4%

The company has a quick ratio of 2.39, a current ratio of 3.65 and a debt-to-equity ratio of 0.30. The business has a 50-day simple moving average of $32.55 and a 200-day simple moving average of $30.30. The company has a market cap of $7.15 billion, a PE ratio of -482.48 and a beta of 1.63.

Allegro MicroSystems (NASDAQ:ALGM) last announced its earnings results on Thursday, January 29th. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.01. The business had revenue of $229.21 million during the quarter, compared to the consensus estimate of $220.78 million. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.The business’s quarterly revenue was up 28.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.07 EPS. Equities research analysts anticipate that Allegro MicroSystems, Inc. will post 0.01 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Man Group plc raised its stake in Allegro MicroSystems by 79.8% in the fourth quarter. Man Group plc now owns 387,105 shares of the company’s stock valued at $10,212,000 after buying an additional 171,818 shares in the last quarter. Engineers Gate Manager LP raised its stake in Allegro MicroSystems by 506.7% during the fourth quarter. Engineers Gate Manager LP now owns 419,600 shares of the company’s stock valued at $11,069,000 after buying an additional 350,434 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in Allegro MicroSystems by 62.6% in the 4th quarter. Balyasny Asset Management L.P. now owns 810,460 shares of the company’s stock valued at $21,380,000 after purchasing an additional 312,129 shares during the last quarter. Guggenheim Capital LLC grew its stake in shares of Allegro MicroSystems by 125.2% in the 4th quarter. Guggenheim Capital LLC now owns 45,571 shares of the company’s stock worth $1,202,000 after purchasing an additional 25,337 shares during the last quarter. Finally, Schonfeld Strategic Advisors LLC grew its holdings in shares of Allegro MicroSystems by 838.1% during the fourth quarter. Schonfeld Strategic Advisors LLC now owns 754,824 shares of the company’s stock valued at $19,912,000 after buying an additional 674,359 shares in the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

About Allegro MicroSystems

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.