Allegro MicroSystems (NASDAQ:ALGM) Stock Price Down 10.1% - Should You Sell?

Key Points

• Allegro MicroSystems shares fell 10.1% on Thursday, dropping from $63.20 to as low as $57.00 amid lighter-than-usual trading volume.
• Analyst sentiment is mixed but generally positive: the stock has a Moderate Buy consensus, with 10 Buy ratings, 1 Hold, and 1 Sell, and a consensus target price of $55.60.
• The company recently reported better-than-expected quarterly results, including EPS of $0.17 on revenue of $243.19 million, while insiders have also been selling shares in recent months.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s stock price was down 10.1% during trading on Thursday . The company traded as low as $57.00 and last traded at $56.80. 1,214,527 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 2,609,700 shares. The stock had previously closed at $63.20.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Weiss Ratings restated a "sell (d-)" rating on shares of Allegro MicroSystems in a research note on Wednesday, May 6th. Mizuho boosted their price objective on Allegro MicroSystems from $54.00 to $67.00 and gave the company an "outperform" rating in a research note on Monday. Needham & Company LLC increased their target price on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Barclays lifted their target price on shares of Allegro MicroSystems from $46.00 to $48.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. Finally, Wall Street Zen raised shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research report on Sunday, June 21st. Ten research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $55.60.

Allegro MicroSystems Stock Performance

The company has a market capitalization of $10.06 billion, a PE ratio of -603.32 and a beta of 1.89. The company has a quick ratio of 2.21, a current ratio of 3.45 and a debt-to-equity ratio of 0.30. The company has a 50-day moving average price of $49.92 and a two-hundred day moving average price of $39.30.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The company had revenue of $243.19 million for the quarter, compared to analyst estimates of $235.94 million. During the same period in the previous year, the company posted $0.06 EPS. The firm's revenue for the quarter was up 26.1% compared to the same quarter last year. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. Analysts predict that Allegro MicroSystems, Inc. will post 0.77 EPS for the current fiscal year.

Insider Activity

In other news, CEO Michael Doogue sold 30,089 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $47.23, for a total value of $1,421,103.47. Following the sale, the chief executive officer directly owned 252,797 shares of the company's stock, valued at approximately $11,939,602.31. This represents a 10.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Susan D. Lynch sold 16,711 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total transaction of $759,682.06. Following the completion of the transaction, the director owned 12,805 shares of the company's stock, valued at $582,115.30. This trade represents a 56.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Parallel Advisors LLC grew its position in Allegro MicroSystems by 42.8% during the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock worth $32,000 after buying an additional 302 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Allegro MicroSystems during the 4th quarter valued at about $34,000. CIBC Private Wealth Group LLC grew its holdings in shares of Allegro MicroSystems by 14,844.4% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company's stock worth $35,000 after purchasing an additional 1,336 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in shares of Allegro MicroSystems by 85.8% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company's stock worth $38,000 after purchasing an additional 669 shares in the last quarter. Finally, Farther Finance Advisors LLC increased its position in shares of Allegro MicroSystems by 815.4% in the fourth quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company's stock worth $57,000 after purchasing an additional 1,908 shares during the last quarter. Hedge funds and other institutional investors own 56.45% of the company's stock.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc NASDAQ: ALGM is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro's product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.

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