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

Allegro MicroSystems, Inc. (NASDAQ:ALGMGet Free Report)’s stock 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 changing hands.

The company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.06 by $0.02. Allegro MicroSystems had a negative net margin of 2.96% and a positive return on equity of 8.48%. The company had revenue of $187.39 million during the quarter, compared to the consensus estimate of $187.52 million. During the same period in the previous year, the firm posted $0.36 earnings per share. The firm’s revenue for the quarter was down 32.0% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ALGM. Barclays raised their target price on Allegro MicroSystems from $25.00 to $30.00 and gave the company an “overweight” rating in a report on Friday, January 17th. Morgan Stanley started coverage on shares of Allegro MicroSystems in a research note on Thursday, November 7th. They issued an “equal weight” rating and a $21.00 target price for the company. Needham & Company LLC dropped their price target on shares of Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Thursday, October 31st. Mizuho set a $26.00 price objective on shares of Allegro MicroSystems in a research note on Friday, October 18th. Finally, Loop Capital began coverage on Allegro MicroSystems in a report on Tuesday, November 12th. They issued a “buy” rating and a $30.00 target price for the company. One equities research analyst has rated the stock with a hold rating and ten have issued a buy rating to the stock. According to data from MarketBeat, Allegro MicroSystems currently has an average rating of “Moderate Buy” and an average price target of $30.91.

Read Our Latest Analysis on Allegro MicroSystems

Insiders Place Their Bets

In other Allegro MicroSystems news, SVP Michael Doogue acquired 15,000 shares of Allegro MicroSystems stock in a transaction that occurred on Monday, November 18th. The stock was acquired at an average cost of $19.00 per share, for a total transaction of $285,000.00. Following the purchase, the senior vice president now owns 246,086 shares of the company’s stock, valued at approximately $4,675,634. This represents a 6.49 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Allegro MicroSystems

Institutional investors have recently added to or reduced their stakes in the stock. FMR LLC grew its position in shares of Allegro MicroSystems by 43.3% during the 3rd quarter. FMR LLC now owns 28,253,811 shares of the company’s stock valued at $658,314,000 after purchasing an additional 8,534,089 shares in the last quarter. Wellington Management Group LLP bought a new stake in Allegro MicroSystems during the third quarter valued at $71,289,000. JPMorgan Chase & Co. grew its position in Allegro MicroSystems by 20.6% during the third quarter. JPMorgan Chase & Co. now owns 11,023,628 shares of the company’s stock worth $256,851,000 after buying an additional 1,884,578 shares in the last quarter. State Street Corp increased its stake in Allegro MicroSystems by 41.7% in the 3rd quarter. State Street Corp now owns 5,486,289 shares of the company’s stock worth $127,831,000 after acquiring an additional 1,615,351 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Allegro MicroSystems by 86.5% in the 3rd quarter. Geode Capital Management LLC now owns 2,561,482 shares of the company’s stock valued at $59,699,000 after acquiring an additional 1,187,792 shares in the last quarter. Hedge funds and other institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Trading Up 5.0 %

The company has a debt-to-equity ratio of 0.42, a quick ratio of 2.80 and a current ratio of 4.22. The stock has a market cap of $4.42 billion, a P/E ratio of -171.42 and a beta of 1.65. The stock has a 50-day moving average price of $22.62 and a 200-day moving average price of $22.82.

Allegro MicroSystems Company Profile

(Get Free Report)

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.

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