Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down – Should You Sell?

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares gapped down prior to trading on Monday . The stock had previously closed at $54.87, but opened at $52.21. Allegro MicroSystems shares last traded at $51.6920, with a volume of 112,512 shares.

Wall Street Analyst Weigh In

ALGM has been the topic of several research analyst reports. Evercore reiterated an “outperform” rating and set a $53.00 price target on shares of Allegro MicroSystems in a research report on Friday, May 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. TD Cowen decreased their target price on Allegro MicroSystems from $70.00 to $66.00 and set a “buy” rating for the company in a research note on Monday. Needham & Company LLC lifted their target price on Allegro MicroSystems from $45.00 to $55.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Finally, Mizuho boosted their price target on shares of Allegro MicroSystems from $54.00 to $67.00 and gave the stock an “outperform” rating in a research report on Monday, June 29th. Ten 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. According to MarketBeat.com, Allegro MicroSystems has an average rating of “Moderate Buy” and a consensus price target of $55.20.

Allegro MicroSystems Trading Up 2.9%

The company’s 50-day moving average is $51.67 and its 200 day moving average is $41.04. The company has a current ratio of 3.45, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. The firm has a market cap of $9.75 billion, a PE ratio of -581.27 and a beta of 1.90.

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

Insider Buying and Selling at Allegro MicroSystems

In other news, CEO Michael Doogue sold 30,089 shares of Allegro MicroSystems stock in a transaction on Monday, May 11th. The stock was sold at an average price of $47.23, for a total transaction of $1,421,103.47. Following the transaction, the chief executive officer owned 252,797 shares in the company, valued at approximately $11,939,602.31. The trade was a 10.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Susan D. Lynch sold 16,711 shares of the stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $45.46, for a total value of $759,682.06. Following the completion of the sale, the director directly owned 12,805 shares of the company’s stock, valued at approximately $582,115.30. This represents a 56.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 68,607 shares of company stock valued at $3,213,714 in the last ninety days. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

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

Allegro MicroSystems Company Profile

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.