Needham & Company LLC Reaffirms “Buy” Rating for Allegro MicroSystems (NASDAQ:ALGM)

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

ALGM has been the topic of several other research reports. TD Cowen increased their price target on Allegro MicroSystems from $32.00 to $35.00 and gave the company a buy rating in a report on Thursday, June 13th. Evercore ISI began coverage on shares of Allegro MicroSystems in a research note on Tuesday, April 16th. They issued an outperform rating and a $36.00 price objective on the stock. Barclays reduced their target price on Allegro MicroSystems from $35.00 to $32.00 and set an overweight rating for the company in a research report on Friday, May 10th. Mizuho reduced their target price on Allegro MicroSystems from $45.00 to $35.00 and set a buy rating for the company in a research report on Friday, May 10th. Finally, Jefferies Financial Group started coverage on Allegro MicroSystems in a report on Monday, May 13th. They set a buy rating and a $37.00 price objective for the company. One investment analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of Moderate Buy and a consensus target price of $34.63.

Allegro MicroSystems Price Performance

Shares of ALGM opened at $21.40 on Friday. The company has a market capitalization of $4.15 billion, a price-to-earnings ratio of 27.44 and a beta of 1.68. Allegro MicroSystems has a fifty-two week low of $21.20 and a fifty-two week high of $42.51. The company has a debt-to-equity ratio of 0.18, a current ratio of 4.65 and a quick ratio of 3.48. The business’s 50-day moving average is $28.49 and its 200-day moving average is $28.73.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings data 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 firm had revenue of $166.90 million for the quarter, compared to the consensus estimate of $165.04 million. During the same quarter in the prior year, the company posted $0.34 earnings per share. The firm’s revenue was down 40.0% on a year-over-year basis. Equities research analysts expect that Allegro MicroSystems will post 0.23 EPS for the current fiscal year.

Insider Activity

In related news, Director Richard R. Lury sold 8,500 shares of Allegro MicroSystems stock in a transaction dated Thursday, May 30th. The stock was sold at an average price of $30.00, for a total value of $255,000.00. Following the completion of the sale, the director now directly owns 23,001 shares in the company, valued at $690,030. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In other news, major shareholder Electric Co. Ltd. Sanken sold 28,750,000 shares of the business’s stock in a transaction dated 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 transaction, 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 filing with the Securities & Exchange Commission, which is available through this link. Also, Director Richard R. Lury sold 8,500 shares of Allegro MicroSystems stock in a transaction dated Thursday, May 30th. The shares were sold at an average price of $30.00, for a total value of $255,000.00. Following the transaction, the director now owns 23,001 shares in the company, valued at approximately $690,030. The disclosure for this sale can be found here. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Several institutional investors have recently modified their holdings of ALGM. Vanguard Group Inc. lifted its stake in Allegro MicroSystems by 13.5% in the 1st quarter. Vanguard Group Inc. now owns 8,400,064 shares of the company’s stock valued at $226,466,000 after acquiring an additional 999,939 shares in the last quarter. Clearbridge Investments LLC grew its holdings in Allegro MicroSystems by 6.7% in the 1st quarter. Clearbridge Investments LLC now owns 3,731,268 shares of the company’s stock valued at $100,595,000 after buying an additional 235,335 shares in the last quarter. Principal Financial Group Inc. lifted its position in shares of Allegro MicroSystems by 0.5% during the 2nd quarter. Principal Financial Group Inc. now owns 2,190,817 shares of the company’s stock valued at $61,869,000 after acquiring an additional 11,230 shares during the period. The Manufacturers Life Insurance Company lifted its position in shares of Allegro MicroSystems by 15.2% during the 4th quarter. The Manufacturers Life Insurance Company now owns 1,175,421 shares of the company’s stock valued at $35,580,000 after acquiring an additional 155,284 shares during the period. Finally, Massachusetts Financial Services Co. MA lifted its position in shares of Allegro MicroSystems by 1.7% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,077,600 shares of the company’s stock valued at $32,619,000 after acquiring an additional 17,969 shares during the period. Institutional investors own 56.45% of the company’s stock.

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.