Allegro MicroSystems (NASDAQ:ALGM) Reaches New 1-Year Low – Should You Sell?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $19.27 and last traded at $19.56, with a volume of 103873 shares trading hands. The stock had previously closed at $19.83.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Morgan Stanley started coverage on Allegro MicroSystems in a report on Thursday, November 7th. They set an “equal weight” rating and a $21.00 target price for the company. UBS Group began coverage on Allegro MicroSystems in a research note on Tuesday, September 3rd. They set a “buy” rating and a $33.00 price objective for the company. Mizuho set a $26.00 target price on Allegro MicroSystems in a research note on Friday, October 18th. Barclays decreased their price target on shares of Allegro MicroSystems from $32.00 to $25.00 and set an “overweight” rating for the company in a research report on Friday, November 1st. Finally, Loop Capital assumed coverage on shares of Allegro MicroSystems in a research report on Tuesday, November 12th. They issued a “buy” rating and a $30.00 price objective on the stock. One research analyst has rated the stock with a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $30.80.

Allegro MicroSystems Stock Down 3.8 %

The stock has a market capitalization of $3.51 billion, a PE ratio of -136.21 and a beta of 1.69. The company has a current ratio of 4.22, a quick ratio of 2.80 and a debt-to-equity ratio of 0.42. The company’s 50-day moving average is $21.66 and its 200 day moving average is $25.41.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings results on Thursday, October 31st. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 business’s quarterly revenue was down 32.0% on a year-over-year basis. During the same quarter last year, the company posted $0.36 earnings per share.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ALGM. Clearbridge Investments LLC increased 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 worth $100,595,000 after buying an additional 235,335 shares during the period. Silvercrest Asset Management Group LLC increased its stake in shares of Allegro MicroSystems by 363.0% in the first quarter. Silvercrest Asset Management Group LLC now owns 632,546 shares of the company’s stock worth $17,053,000 after acquiring an additional 495,935 shares during the period. Russell Investments Group Ltd. raised its holdings in shares of Allegro MicroSystems by 238.9% during the first quarter. Russell Investments Group Ltd. now owns 55,734 shares of the company’s stock worth $1,503,000 after purchasing an additional 39,289 shares during the last quarter. XTX Topco Ltd acquired a new position in Allegro MicroSystems during the second quarter valued at $856,000. Finally, Principal Financial Group Inc. boosted its holdings in Allegro MicroSystems by 14.1% in the third quarter. Principal Financial Group Inc. now owns 2,499,760 shares of the company’s stock valued at $58,244,000 after purchasing an additional 308,943 shares during the last quarter. 56.45% of the stock is 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; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers.