Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down - Time to Sell?

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $18.06, but opened at $17.40. Allegro MicroSystems shares last traded at $16.89, with a volume of 225,539 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Barclays decreased their price objective on shares of Allegro MicroSystems from $30.00 to $22.00 and set an "overweight" rating for the company in a research note on Tuesday. Morgan Stanley increased their price target on Allegro MicroSystems from $21.00 to $23.00 and gave the company an "equal weight" rating in a report on Monday, February 3rd. Mizuho raised their price objective on Allegro MicroSystems from $28.00 to $31.00 and gave the company an "outperform" rating in a research report on Monday, March 24th. Needham & Company LLC reaffirmed a "buy" rating and issued a $30.00 target price on shares of Allegro MicroSystems in a research report on Monday, February 24th. Finally, 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. One equities research analyst has rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $29.78.

Allegro MicroSystems Price Performance

The stock's 50 day simple moving average is $23.66 and its 200-day simple moving average is $22.79. The stock has a market capitalization of $3.52 billion, a price-to-earnings ratio of -54.63 and a beta of 1.53. The company has a debt-to-equity ratio of 0.40, a current ratio of 4.91 and a quick ratio of 3.00.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. grew its position in Allegro MicroSystems by 20.6% during the third quarter. JPMorgan Chase & Co. now owns 11,023,628 shares of the company's stock worth $256,851,000 after buying an additional 1,884,578 shares in the last quarter. Capital Research Global Investors lifted its position in shares of Allegro MicroSystems by 6.5% in the 4th quarter. Capital Research Global Investors now owns 5,768,208 shares of the company's stock worth $126,093,000 after acquiring an additional 353,776 shares during the period. Wellington Management Group LLP grew its holdings in shares of Allegro MicroSystems by 30.5% during the 4th quarter. Wellington Management Group LLP now owns 3,993,682 shares of the company's stock worth $87,302,000 after purchasing an additional 934,048 shares in the last quarter. Adage Capital Partners GP L.L.C. increased its position in shares of Allegro MicroSystems by 50.1% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 2,733,560 shares of the company's stock valued at $59,756,000 after purchasing an additional 911,993 shares during the period. Finally, Principal Financial Group Inc. raised its stake in shares of 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 in the last quarter. 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.