Castleark Management LLC Makes New Investment in Allegro MicroSystems, Inc. $ALGM

Key Points

• Castleark Management initiated a stake of 141,900 Allegro MicroSystems shares worth approximately $9.9 million, while institutional investors collectively own 56.45% of the company.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $53.45; targets from several firms range up to $56.
• Allegro exceeded quarterly expectations with adjusted EPS of $0.23 versus $0.21 estimated and revenue of $259.24 million, up 27.5% year over year.

Castleark Management LLC purchased a new stake in Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 141,900 shares of the company's stock, valued at approximately $9,879,000. Castleark Management LLC owned approximately 0.08% of Allegro MicroSystems as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. BlackRock Inc. bought a new position in Allegro MicroSystems in the 2nd quarter worth about $966,975,000. Invesco Ltd. grew its holdings in Allegro MicroSystems by 44.0% during 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 in the last quarter. State Street Corp increased its position in shares of Allegro MicroSystems by 1.5% during the fourth quarter. State Street Corp now owns 5,359,488 shares of the company's stock valued at $141,383,000 after buying an additional 78,203 shares during the period. Adage Capital Partners GP L.L.C. increased its position in shares of Allegro MicroSystems by 77.8% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock valued at $73,968,000 after buying an additional 1,227,317 shares during the period. Finally, Alliancebernstein L.P. lifted its holdings in shares of Allegro MicroSystems by 189.4% in the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock worth $94,360,000 after buying an additional 1,806,183 shares in the last quarter. 56.45% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

ALGM has been the subject of several recent analyst reports. Barclays cut shares of Allegro MicroSystems from an "overweight" rating to an "equal weight" rating and set a $48.00 price objective for the company. in a research note on Monday, July 20th. Wall Street Zen upgraded shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Sunday, August 2nd. UBS Group raised their price target on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the company a "buy" rating in a report on Friday, May 8th. Evercore restated an "outperform" rating and set a $53.00 price target on shares of Allegro MicroSystems in a research report on Friday, May 8th. Finally, Wells Fargo & Company upped their price target on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. 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 given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $53.45.

Allegro MicroSystems Trading Up 5.1%

Shares of ALGM opened at $37.44 on Wednesday. Allegro MicroSystems, Inc. has a 1-year low of $22.41 and a 1-year high of $71.77. The company has a market capitalization of $6.98 billion, a P/E ratio of 624.10, a P/E/G ratio of 1.12 and a beta of 1.94. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.33. The firm's 50 day simple moving average is $48.95 and its 200 day simple moving average is $43.46.

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

Insider Buying and Selling at Allegro MicroSystems

In related news, SVP Richard Madormo sold 5,000 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total value of $263,600.00. Following the completion of the transaction, the senior vice president directly owned 69,687 shares in the company, valued at approximately $3,673,898.64. The trade was a 6.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Erin Hagen sold 2,285 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $44.39, for a total value of $101,431.15. Following the completion of the transaction, the senior vice president directly owned 31,052 shares in the company, valued at approximately $1,378,398.28. This represents a 6.85% decrease in their position. The SEC filing for this sale provides additional information. 0.50% of the stock is currently owned by insiders.

Allegro MicroSystems 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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