Allegro MicroSystems (NASDAQ:ALGM) Shares Down 5.7% – Should You Sell?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) fell 5.7% during mid-day trading on Monday . The stock traded as low as $20.90 and last traded at $21.03. 394,667 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 1,942,071 shares. The stock had previously closed at $22.29.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Morgan Stanley started coverage on Allegro MicroSystems in a research report on Thursday, November 7th. They issued an “equal weight” rating and a $21.00 price objective on the stock. Barclays reduced their target price 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. Mizuho set a $26.00 price objective on shares of Allegro MicroSystems in a research note on Friday, October 18th. Loop Capital initiated coverage on Allegro MicroSystems in a research report on Tuesday, November 12th. They issued a “buy” rating and a $30.00 price target for the company. Finally, Needham & Company LLC reduced their target price on Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating for the company in a report on Thursday, October 31st. One investment analyst has rated the stock with a hold rating and ten have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $30.09.

Allegro MicroSystems Trading Down 4.4 %

The stock’s 50 day moving average is $21.38 and its 200-day moving average is $23.70. 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 market capitalization of $3.92 billion, a P/E ratio of -152.20 and a beta of 1.67.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, October 31st. The company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 company had revenue of $187.39 million during the quarter, compared to analysts’ expectations of $187.52 million. During the same period last year, the company posted $0.36 EPS. Allegro MicroSystems’s revenue was down 32.0% on a year-over-year basis.

Insider Activity at Allegro MicroSystems

In other Allegro MicroSystems news, SVP Michael Doogue bought 15,000 shares of Allegro MicroSystems stock in a transaction on Monday, November 18th. The stock was acquired at an average price of $19.00 per share, with a total value of $285,000.00. Following the acquisition, the senior vice president now owns 246,086 shares in the company, valued at approximately $4,675,634. This trade represents a 6.49 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Allegro MicroSystems

A number of institutional investors have recently made changes to their positions in the stock. KBC Group NV boosted its holdings in Allegro MicroSystems by 40.9% in the third quarter. KBC Group NV now owns 3,590 shares of the company’s stock worth $84,000 after purchasing an additional 1,042 shares during the last quarter. Van ECK Associates Corp purchased a new position in shares of Allegro MicroSystems in the 3rd quarter worth $172,000. Oppenheimer Asset Management Inc. bought a new stake in shares of Allegro MicroSystems in the second quarter worth $211,000. Intech Investment Management LLC purchased a new stake in Allegro MicroSystems during the third quarter valued at $214,000. Finally, nVerses Capital LLC bought a new position in Allegro MicroSystems in the third quarter valued at about $231,000. Hedge funds and other institutional investors own 56.45% of the company’s stock.

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.