Allegro MicroSystems (NASDAQ:ALGM) Shares Down 7.2% - Here's What Happened

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) fell 7.2% during trading on Wednesday . The company traded as low as $34.00 and last traded at $33.63. 214,374 shares traded hands during trading, a decline of 92% from the average session volume of 2,696,568 shares. The stock had previously closed at $36.24.

Analyst Upgrades and Downgrades

A number of brokerages have commented on ALGM. Mizuho lifted their target price on shares of Allegro MicroSystems from $31.00 to $37.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 8th. Bank of America boosted their price objective on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the stock an "action list buy" rating in a research report on Thursday, July 10th. UBS Group upped their price objective on shares of Allegro MicroSystems from $35.00 to $42.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Wells Fargo & Company reaffirmed an "overweight" rating and set a $42.00 price target (up from $33.00) on shares of Allegro MicroSystems in a research note on Wednesday, July 16th. Finally, Barclays increased their price objective on shares of Allegro MicroSystems from $22.00 to $23.00 and gave the company an "overweight" rating in a research note on Friday, May 9th. One research analyst has rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $33.63.

Allegro MicroSystems Stock Up 2.9%

The company has a quick ratio of 2.66, a current ratio of 4.30 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $6.23 billion, a PE ratio of -86.41 and a beta of 1.75. The business's 50 day simple moving average is $31.61 and its 200 day simple moving average is $26.32.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its quarterly earnings data on Thursday, May 8th. The company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of $0.05 by $0.01. Allegro MicroSystems had a positive return on equity of 1.04% and a negative net margin of 10.07%. The firm had revenue of $192.82 million for the quarter, compared to the consensus estimate of $185.35 million. During the same quarter in the prior year, the company posted $0.25 earnings per share. The firm's revenue was down 19.9% on a year-over-year basis. As a group, analysts forecast that Allegro MicroSystems, Inc. will post 0.01 EPS for the current year.

Hedge Funds Weigh In On Allegro MicroSystems

Institutional investors have recently modified their holdings of the business. KLP Kapitalforvaltning AS bought a new position in shares of Allegro MicroSystems during the fourth quarter worth about $603,000. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of Allegro MicroSystems by 1.1% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 256,867 shares of the company's stock valued at $6,088,000 after buying an additional 2,798 shares during the last quarter. Loomis Sayles & Co. L P lifted its holdings in Allegro MicroSystems by 11.4% during the fourth quarter. Loomis Sayles & Co. L P now owns 873,467 shares of the company's stock worth $19,094,000 after acquiring an additional 89,356 shares during the period. Norges Bank bought a new stake in Allegro MicroSystems during the fourth quarter worth $26,926,000. Finally, New Age Alpha Advisors LLC bought a new stake in shares of Allegro MicroSystems in the fourth quarter valued at $2,637,000. 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.