Allegro MicroSystems (NASDAQ:ALGM) Stock Price Down 9.6% – Should You Sell?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) traded down 9.6% on Tuesday . The stock traded as low as $40.27 and last traded at $40.0160. Approximately 375,367 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 2,574,270 shares. The stock had previously closed at $44.25.

Analysts Set New Price Targets

Several equities analysts have commented on ALGM shares. Jefferies Financial Group reissued a “buy” rating and set a $62.00 target price on shares of Allegro MicroSystems in a research note on Thursday, May 7th. Benchmark started coverage on shares of Allegro MicroSystems in a research note on Wednesday, August 12th. They issued a “buy” rating and a $60.00 price target for the company. Needham & Company LLC increased their price objective on shares of Allegro MicroSystems from $55.00 to $57.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Morgan Stanley raised their price objective on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Finally, Wells Fargo & Company raised their price objective on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $53.45.

Allegro MicroSystems Stock Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.33. The firm has a market cap of $7.51 billion, a price-to-earnings ratio of 672.85, a price-to-earnings-growth ratio of 1.40 and a beta of 1.94. The company has a fifty day moving average price of $50.40 and a two-hundred day moving average price of $43.45.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.21 by $0.02. The firm had revenue of $259.24 million for the quarter, compared to analyst estimates of $251.44 million. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%.Allegro MicroSystems’s revenue was up 27.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.09 earnings per share. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. As a group, equities research analysts expect that Allegro MicroSystems, Inc. will post 0.65 EPS for the current year.

Insider Activity

In related news, SVP Richard Madormo sold 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total value of $263,600.00. Following the sale, the senior vice president directly owned 69,687 shares in the company, valued at $3,673,898.64. The trade was a 6.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Roald Graham Webster sold 5,217 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the sale, the chief accounting officer directly owned 13,106 shares of the company’s stock, valued at approximately $588,197.28. This represents a 28.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 12,502 shares of company stock worth $599,170. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ALGM. Transamerica Financial Advisors LLC bought a new position in shares of Allegro MicroSystems in the second quarter valued at $27,000. Rakuten Securities Inc. acquired a new stake in shares of Allegro MicroSystems during the 2nd quarter valued at $31,000. Parallel Advisors LLC lifted its position in shares of Allegro MicroSystems by 42.8% during the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after acquiring an additional 302 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Allegro MicroSystems during the 4th quarter worth $34,000. Finally, CIBC Private Wealth Group LLC boosted its stake in shares of Allegro MicroSystems by 14,844.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock worth $35,000 after acquiring an additional 1,336 shares in the last quarter. Institutional investors and hedge funds 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.