Allegro MicroSystems (NASDAQ:ALGM) Trading Down 10.1% – Time to Sell?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) fell 10.1% during trading on Thursday . The company traded as low as $57.00 and last traded at $56.80. Approximately 1,214,527 shares were traded during mid-day trading, a decline of 53% from the average session volume of 2,609,700 shares. The stock had previously closed at $63.20.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Needham & Company LLC raised their price objective on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Wells Fargo & Company raised their price target on Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Allegro MicroSystems in a research note on Wednesday, May 6th. Jefferies Financial Group reiterated a “buy” rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday, May 7th. Finally, Evercore reiterated an “outperform” rating and set a $53.00 price objective on shares of Allegro MicroSystems in a research report on Friday, May 8th. Ten equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Allegro MicroSystems has an average rating of “Moderate Buy” and an average price target of $55.60.

Allegro MicroSystems Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21. The firm has a market capitalization of $10.06 billion, a P/E ratio of -603.32 and a beta of 1.89. The firm’s 50 day simple moving average is $49.92 and its two-hundred day simple moving average is $39.30.

Allegro MicroSystems (NASDAQ:ALGM) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.01. The firm had revenue of $243.19 million for the quarter, compared to analysts’ expectations of $235.94 million. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The company’s revenue for the quarter was up 26.1% compared to the same quarter last year. During the same period last year, the firm earned $0.06 earnings per share. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. As a group, analysts predict that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current year.

Insider Transactions at Allegro MicroSystems

In other news, Director Susan D. Lynch sold 16,711 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total transaction of $759,682.06. Following the sale, the director owned 12,805 shares in the company, valued at approximately $582,115.30. The trade was a 56.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Ian Kent sold 2,642 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $41.56, for a total transaction of $109,801.52. Following the completion of the transaction, the senior vice president owned 25,392 shares of the company’s stock, valued at approximately $1,055,291.52. The trade was a 9.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 68,607 shares of company stock worth $3,213,714. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Institutional investors and hedge funds have recently made changes to their positions in the business. Parallel Advisors LLC lifted its holdings in shares of Allegro MicroSystems by 42.8% during the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after purchasing an additional 302 shares during the last quarter. Kestra Advisory Services LLC bought a new position in Allegro MicroSystems during the 4th quarter valued at approximately $34,000. CIBC Private Wealth Group LLC raised its stake in Allegro MicroSystems by 14,844.4% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock valued at $35,000 after buying an additional 1,336 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in Allegro MicroSystems by 85.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock valued at $38,000 after buying an additional 669 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its holdings in Allegro MicroSystems by 815.4% in the fourth quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company’s stock worth $57,000 after acquiring an additional 1,908 shares in the last quarter. Institutional investors own 56.45% of the company’s stock.

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.