Allegro MicroSystems (NASDAQ:ALGM) Receives Buy Rating from Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Allegro MicroSystems (NASDAQ:ALGM) in a research note released on Friday, Benzinga reports. They currently have a $33.00 price target on the stock.

Several other brokerages have also recently issued reports on ALGM. Evercore ISI began coverage on Allegro MicroSystems in a report on Tuesday, April 16th. They issued an outperform rating and a $36.00 price objective for the company. TD Cowen boosted their price objective on Allegro MicroSystems from $32.00 to $35.00 and gave the company a buy rating in a report on Thursday, June 13th. Barclays decreased their price objective on Allegro MicroSystems from $35.00 to $32.00 and set an overweight rating for the company in a report on Friday, May 10th. Mizuho cut their price target on Allegro MicroSystems from $45.00 to $35.00 and set a buy rating for the company in a research note on Friday, May 10th. Finally, Jefferies Financial Group began coverage on Allegro MicroSystems in a research note on Monday, May 13th. They issued a buy rating and a $37.00 price target for the company. One equities research analyst has rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of Moderate Buy and a consensus price target of $34.63.

Allegro MicroSystems Stock Performance

Shares of ALGM opened at $22.79 on Friday. The stock has a 50-day moving average of $28.67 and a two-hundred day moving average of $28.72. Allegro MicroSystems has a one year low of $22.31 and a one year high of $43.59. The company has a debt-to-equity ratio of 0.18, a quick ratio of 3.48 and a current ratio of 4.65. The stock has a market cap of $4.99 billion, a P/E ratio of 29.22 and a beta of 1.68.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, August 1st. The company reported $0.03 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.01. Allegro MicroSystems had a return on equity of 13.88% and a net margin of 7.91%. The company had revenue of $166.90 million during the quarter, compared to analysts’ expectations of $165.04 million. During the same quarter in the previous year, the firm posted $0.34 EPS. The firm’s revenue was down 40.0% compared to the same quarter last year. As a group, research analysts predict that Allegro MicroSystems will post 0.23 EPS for the current year.

Insiders Place Their Bets

In other Allegro MicroSystems news, major shareholder Electric Co. Ltd. Sanken sold 28,750,000 shares of the business’s stock in a transaction that occurred on Monday, July 29th. The stock was sold at an average price of $23.16, for a total transaction of $665,850,000.00. Following the completion of the sale, the insider now directly owns 69,750,097 shares in the company, valued at approximately $1,615,412,246.52. The transaction was disclosed in a document filed with the SEC, which is available through this link. In other news, Director Richard R. Lury sold 8,500 shares of the business’s stock in a transaction that occurred on Thursday, May 30th. The stock was sold at an average price of $30.00, for a total transaction of $255,000.00. Following the transaction, the director now directly owns 23,001 shares in the company, valued at approximately $690,030. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, major shareholder Electric Co. Ltd. Sanken sold 28,750,000 shares of the company’s stock in a transaction that occurred on Monday, July 29th. The shares were sold at an average price of $23.16, for a total value of $665,850,000.00. Following the completion of the transaction, the insider now owns 69,750,097 shares in the company, valued at $1,615,412,246.52. The disclosure for this sale can be found here. 0.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Treasurer of the State of North Carolina lifted its holdings in Allegro MicroSystems by 1.0% in the fourth quarter. Treasurer of the State of North Carolina now owns 33,247 shares of the company’s stock valued at $1,006,000 after acquiring an additional 320 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. lifted its stake in Allegro MicroSystems by 14.7% during the fourth quarter. Migdal Insurance & Financial Holdings Ltd. now owns 3,051 shares of the company’s stock worth $94,000 after purchasing an additional 390 shares in the last quarter. State of Michigan Retirement System lifted its stake in Allegro MicroSystems by 2.3% during the first quarter. State of Michigan Retirement System now owns 17,500 shares of the company’s stock worth $472,000 after purchasing an additional 400 shares in the last quarter. Quadrant Capital Group LLC lifted its stake in Allegro MicroSystems by 25.1% during the fourth quarter. Quadrant Capital Group LLC now owns 2,115 shares of the company’s stock worth $64,000 after purchasing an additional 425 shares in the last quarter. Finally, Psagot Value Holdings Ltd. Israel lifted its stake in Allegro MicroSystems by 28.5% during the fourth quarter. Psagot Value Holdings Ltd. Israel now owns 2,262 shares of the company’s stock worth $70,000 after purchasing an additional 502 shares in the last quarter. 56.45% of the stock is currently owned by institutional investors and hedge funds.

About Allegro MicroSystems

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; power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers; and photonic and advanced 3D sensing components.