Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Up – Time to Buy?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) gapped up prior to trading on Monday . The stock had previously closed at $22.30, but opened at $26.75. Allegro MicroSystems shares last traded at $26.78, with a volume of 2,938,789 shares traded.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on ALGM. 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. Barclays lifted their target price on Allegro MicroSystems from $25.00 to $30.00 and gave the company an “overweight” rating in a research report on Friday, January 17th. Needham & Company LLC reissued a “buy” rating and set a $30.00 price target on shares of Allegro MicroSystems in a research report on Monday, February 24th. Wells Fargo & Company boosted their price target on Allegro MicroSystems from $23.00 to $27.00 and gave the stock an “overweight” rating in a research report on Monday, January 13th. Finally, Morgan Stanley increased their price objective on Allegro MicroSystems from $21.00 to $23.00 and gave the company an “equal weight” rating in a report on Monday, February 3rd. One equities research analyst has rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat, Allegro MicroSystems currently has a consensus rating of “Moderate Buy” and a consensus target price of $30.70.

Allegro MicroSystems Stock Performance

The company has a debt-to-equity ratio of 0.40, a current ratio of 4.91 and a quick ratio of 3.00. The company has a market capitalization of $4.93 billion, a price-to-earnings ratio of -76.51 and a beta of 1.66. The stock has a 50-day moving average price of $24.02 and a 200-day moving average price of $22.70.

Hedge Funds Weigh In On Allegro MicroSystems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ALGM. New York State Teachers Retirement System raised its position in shares of Allegro MicroSystems by 97.4% in the third quarter. New York State Teachers Retirement System now owns 22,900 shares of the company’s stock valued at $534,000 after purchasing an additional 11,300 shares during the period. Van ECK Associates Corp bought a new stake in shares of Allegro MicroSystems during the 3rd quarter worth about $172,000. Amalgamated Bank grew its stake in Allegro MicroSystems by 99.1% in the 3rd quarter. Amalgamated Bank now owns 72,399 shares of the company’s stock valued at $1,687,000 after buying an additional 36,042 shares during the last quarter. Principal Financial Group Inc. increased its stake in shares of Allegro MicroSystems by 14.1% during the third quarter. Principal Financial Group Inc. now owns 2,499,760 shares of the company’s stock worth $58,244,000 after purchasing an additional 308,943 shares during the period. Finally, State of New Jersey Common Pension Fund D bought a new position in Allegro MicroSystems during the 3rd quarter worth $1,890,000. 56.45% of the stock is owned by institutional investors.

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.