California State Teachers Retirement System Boosts Stock Position in Allegro MicroSystems, Inc. $ALGM

Key Points

• California State Teachers Retirement System increased its Allegro MicroSystems stake by 6,620% in the second quarter, acquiring 9.92 million additional shares. It now owns about 5.4% of the company, valued at approximately $701 million.
• Allegro reported quarterly earnings of $0.23 per share, exceeding the $0.21 consensus estimate, while revenue rose 27.5% year over year to $259.24 million. Shares opened at $36.31, well below their 52-week high of $71.77.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $53.45. Price targets range from $48 to $60, although some firms recently downgraded or reduced their targets.

California State Teachers Retirement System increased its holdings in Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) by 6,620.0% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 10,068,305 shares of the company's stock after purchasing an additional 9,918,479 shares during the period. California State Teachers Retirement System owned approximately 5.40% of Allegro MicroSystems worth $700,955,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Allegro MicroSystems in the second quarter worth $966,975,000. Invesco Ltd. boosted its position in Allegro MicroSystems by 44.0% in the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock valued at $201,835,000 after buying an additional 2,338,624 shares during the period. State Street Corp raised its position in Allegro MicroSystems by 1.5% during the 4th quarter. State Street Corp now owns 5,359,488 shares of the company's stock valued at $141,383,000 after purchasing an additional 78,203 shares in the last quarter. Adage Capital Partners GP L.L.C. grew its holdings in Allegro MicroSystems by 77.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock worth $73,968,000 after acquiring an additional 1,227,317 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its stake in shares of Allegro MicroSystems by 189.4% during the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock valued at $94,360,000 after purchasing an additional 1,806,183 shares in the last quarter. Hedge funds and other institutional investors own 56.45% of the company's stock.

Insider Activity at Allegro MicroSystems

In other news, SVP Erin Hagen sold 2,285 shares of Allegro MicroSystems stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $44.39, for a total transaction of $101,431.15. Following the completion of the transaction, the senior vice president directly owned 31,052 shares of the company's stock, valued at $1,378,398.28. The trade was a 6.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.50% of the stock is owned by insiders.

Allegro MicroSystems Price Performance

Shares of ALGM opened at $36.31 on Monday. The business's 50-day moving average is $42.89 and its two-hundred day moving average is $43.06. The company has a market capitalization of $6.77 billion, a P/E ratio of 605.27, a P/E/G ratio of 1.14 and a beta of 1.91. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.33 and a current ratio of 3.70. Allegro MicroSystems, Inc. has a fifty-two week low of $22.41 and a fifty-two week high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.21 by $0.02. The firm had revenue of $259.24 million for the quarter, compared to analyst estimates of $251.44 million. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%.Allegro MicroSystems's revenue for the quarter was up 27.5% compared to the same quarter last year. During the same period last year, the company earned $0.09 earnings per share. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Research analysts predict that Allegro MicroSystems, Inc. will post 0.65 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research firms have issued reports on ALGM. Needham & Company LLC lifted their target price on Allegro MicroSystems from $55.00 to $57.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Barclays lowered shares of Allegro MicroSystems from an "overweight" rating to an "equal weight" rating and set a $48.00 price target for the company. in a research report on Monday, July 20th. Morgan Stanley raised their price target on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the company an "overweight" rating in a report on Friday, July 31st. TD Cowen reduced their price objective on shares of Allegro MicroSystems from $66.00 to $48.00 and set a "buy" rating for the company in a research note on Friday, July 31st. Finally, Benchmark assumed coverage on shares of Allegro MicroSystems in a research note on Wednesday, August 12th. They set a "buy" rating and a $60.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Allegro MicroSystems presently has a consensus rating of "Moderate Buy" and an average target price of $53.45.

About Allegro MicroSystems

Allegro MicroSystems, Inc develops and manufactures semiconductor solutions that enable motion control, energy efficiency and intelligent system monitoring. The company primarily serves the automotive and industrial markets, providing integrated circuits and sensor technologies used in vehicles, factory automation, appliances, power systems and other electronic equipment.

Its product portfolio includes magnetic sensor ICs for measuring position, speed, current and motion; power management and regulation devices; motor driver ICs; LED driver solutions; and other application-specific integrated circuits.

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