Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down Following Weak Earnings

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $22.85, but opened at $22.15. Allegro MicroSystems shares last traded at $22.52, with a volume of 901,840 shares traded.

The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.06 by $0.02. Allegro MicroSystems had a negative net margin of 2.96% and a positive return on equity of 8.48%. The firm had revenue of $187.39 million for the quarter, compared to analyst estimates of $187.52 million. During the same period last year, the firm earned $0.36 EPS. The business’s quarterly revenue was down 32.0% compared to the same quarter last year.

Analysts Set New Price Targets

A number of brokerages have weighed in on ALGM. Wells Fargo & Company raised their target price on Allegro MicroSystems from $23.00 to $27.00 and gave the company an “overweight” rating in a report on Monday, January 13th. Morgan Stanley initiated coverage on Allegro MicroSystems in a research note on Thursday, November 7th. They set an “equal weight” rating and a $21.00 target price for the company. Loop Capital initiated coverage on shares of Allegro MicroSystems in a report on Tuesday, November 12th. They issued a “buy” rating and a $30.00 target price for the company. Barclays lifted their price target on shares of Allegro MicroSystems from $25.00 to $30.00 and gave the company an “overweight” rating in a report on Friday, January 17th. Finally, Mizuho set a $26.00 price objective on shares of Allegro MicroSystems in a research note on Friday, October 18th. One analyst has rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $30.91.

Insiders Place Their Bets

In related news, SVP Michael Doogue acquired 15,000 shares of Allegro MicroSystems stock in a transaction dated Monday, November 18th. The stock was bought at an average price of $19.00 per share, with a total value of $285,000.00. Following the transaction, the senior vice president now directly owns 246,086 shares in the company, valued at $4,675,634. This represents a 6.49 % increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Westfield Capital Management Co. LP increased its stake in Allegro MicroSystems by 54.6% in the third quarter. Westfield Capital Management Co. LP now owns 2,014,481 shares of the company’s stock valued at $46,937,000 after purchasing an additional 711,185 shares in the last quarter. JPMorgan Chase & Co. increased its position in Allegro MicroSystems by 20.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 11,023,628 shares of the company’s stock valued at $256,851,000 after buying an additional 1,884,578 shares in the last quarter. Geode Capital Management LLC raised its stake in Allegro MicroSystems by 86.5% during the 3rd quarter. Geode Capital Management LLC now owns 2,561,482 shares of the company’s stock worth $59,699,000 after buying an additional 1,187,792 shares during the period. Wellington Management Group LLP bought a new position in Allegro MicroSystems in the third quarter worth approximately $71,289,000. Finally, Pier Capital LLC acquired a new stake in Allegro MicroSystems in the third quarter valued at approximately $7,514,000. Institutional investors and hedge funds own 56.45% of the company’s stock.

Allegro MicroSystems Stock Performance

The company has a debt-to-equity ratio of 0.42, a current ratio of 4.22 and a quick ratio of 2.80. The company has a fifty day moving average price of $22.62 and a 200 day moving average price of $22.82. The stock has a market cap of $4.42 billion, a P/E ratio of -171.42 and a beta of 1.65.

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.