Allegro MicroSystems (NASDAQ:ALGM) Sees Unusually-High Trading Volume – Time to Buy?

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares saw strong trading volume on Thursday . 4,229,000 shares were traded during trading, an increase of 118% from the previous session’s volume of 1,939,728 shares.The stock last traded at $20.92 and had previously closed at $20.14.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Morgan Stanley initiated coverage on shares of Allegro MicroSystems in a research note on Thursday, November 7th. They issued an “equal weight” rating and a $21.00 price objective for the company. Mizuho set a $26.00 price target on shares of Allegro MicroSystems in a report on Friday, October 18th. Needham & Company LLC dropped their target price on Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Thursday, October 31st. Loop Capital began coverage on shares of Allegro MicroSystems in a research report on Tuesday, November 12th. They issued a “buy” rating and a $30.00 target price for the company. Finally, Barclays reduced their price objective on shares of Allegro MicroSystems from $32.00 to $25.00 and set an “overweight” rating for the company in a research note on Friday, November 1st. One equities research analyst has rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, Allegro MicroSystems currently has an average rating of “Moderate Buy” and a consensus target price of $30.80.

Allegro MicroSystems Stock Performance

The company has a debt-to-equity ratio of 0.42, a quick ratio of 2.80 and a current ratio of 4.22. The stock’s 50-day moving average is $21.52 and its 200-day moving average is $25.21.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, October 31st. The company reported $0.08 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.02. The business had revenue of $187.39 million during the quarter, compared to analysts’ expectations of $187.52 million. Allegro MicroSystems had a negative net margin of 2.96% and a positive return on equity of 8.48%. The firm’s revenue was down 32.0% on a year-over-year basis. During the same quarter last year, the company earned $0.36 earnings per share.

Insiders Place Their Bets

In related news, SVP Michael Doogue bought 15,000 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The stock was acquired at an average price of $19.00 per share, for a total transaction of $285,000.00. Following the transaction, the senior vice president now directly owns 246,086 shares of the company’s stock, valued at $4,675,634. This represents a 6.49 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Versant Capital Management Inc increased its position in shares of Allegro MicroSystems by 1,957.1% during the 2nd quarter. Versant Capital Management Inc now owns 1,152 shares of the company’s stock worth $33,000 after purchasing an additional 1,096 shares in the last quarter. GAMMA Investing LLC increased its holdings in shares of Allegro MicroSystems by 52.2% during the second quarter. GAMMA Investing LLC now owns 1,759 shares of the company’s stock worth $50,000 after buying an additional 603 shares in the last quarter. KBC Group NV raised its stake in shares of Allegro MicroSystems by 40.9% in the third quarter. KBC Group NV now owns 3,590 shares of the company’s stock valued at $84,000 after acquiring an additional 1,042 shares during the last quarter. CWM LLC boosted its holdings in shares of Allegro MicroSystems by 27.7% in the 2nd quarter. CWM LLC now owns 4,241 shares of the company’s stock worth $120,000 after acquiring an additional 921 shares in the last quarter. Finally, Van ECK Associates Corp bought a new stake in Allegro MicroSystems during the 3rd quarter worth approximately $172,000. 56.45% of the stock is currently owned by institutional investors and hedge funds.

Allegro MicroSystems Company Profile

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; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers.