Ethic Inc. Invests $510,000 in Allegro MicroSystems, Inc. $ALGM

Key Points

• Ethic Inc. acquired 19,477 shares of Allegro MicroSystems, Inc. for approximately $510,000 in the first quarter, highlighting increased institutional investment in the company.
• Analysts remain optimistic about Allegro MicroSystems, with multiple upgrades pushing the average target price to $37.56 and a consensus rating of "Moderate Buy."
• Allegro reported a revenue increase of 21.9% year-over-year, with earnings per share matching expectations at $0.09 for the most recent quarter.

Ethic Inc. bought a new position in shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 19,477 shares of the company's stock, valued at approximately $510,000.

Other hedge funds also recently added to or reduced their stakes in the company. Fifth Third Bancorp lifted its holdings in Allegro MicroSystems by 63.7% during the 1st quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock worth $33,000 after buying an additional 504 shares in the last quarter. UMB Bank n.a. increased its position in shares of Allegro MicroSystems by 68.6% in the 1st quarter. UMB Bank n.a. now owns 1,420 shares of the company's stock valued at $36,000 after purchasing an additional 578 shares during the last quarter. TD Waterhouse Canada Inc. purchased a new stake in shares of Allegro MicroSystems in the 4th quarter valued at approximately $40,000. DekaBank Deutsche Girozentrale purchased a new stake in shares of Allegro MicroSystems in the 1st quarter valued at approximately $71,000. Finally, Quarry LP purchased a new stake in shares of Allegro MicroSystems in the 4th quarter valued at approximately $79,000. 56.45% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have commented on ALGM. Morgan Stanley dropped their price objective on shares of Allegro MicroSystems from $38.00 to $35.00 and set an "equal weight" rating on the stock in a research report on Friday, August 1st. Mizuho increased their price objective on shares of Allegro MicroSystems from $37.00 to $40.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Bank of America increased their price objective on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the company an "action list buy" rating in a research report on Thursday, July 10th. Needham & Company LLC increased their price objective on shares of Allegro MicroSystems from $25.00 to $37.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, TD Cowen dropped their price objective on shares of Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating on the stock in a research report on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $37.56.

Allegro MicroSystems Stock Performance

NASDAQ:ALGM traded down $0.19 during trading hours on Tuesday, reaching $31.57. 741,407 shares of the company's stock were exchanged, compared to its average volume of 2,750,817. The firm has a market capitalization of $5.84 billion, a price-to-earnings ratio of -85.35 and a beta of 1.74. The company has a 50-day moving average of $33.29 and a 200 day moving average of $27.47. The company has a quick ratio of 2.26, a current ratio of 3.70 and a debt-to-equity ratio of 0.34. Allegro MicroSystems, Inc. has a 1-year low of $16.38 and a 1-year high of $38.45.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.09 earnings per share for the quarter, hitting analysts' consensus estimates of $0.09. The firm had revenue of $203.41 million during the quarter, compared to analysts' expectations of $197.82 million. Allegro MicroSystems had a negative net margin of 9.00% and a positive return on equity of 2.09%. Allegro MicroSystems's quarterly revenue was up 21.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.03 EPS. Allegro MicroSystems has set its Q2 2026 guidance at 0.100-0.140 EPS. Research analysts anticipate that Allegro MicroSystems, Inc. will post 0.01 EPS for the current year.

Insiders Place Their Bets

In related news, CAO Roald Graham Webster sold 8,266 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $32.81, for a total transaction of $271,207.46. Following the completion of the sale, the chief accounting officer owned 17,300 shares in the company, valued at $567,613. This represents a 32.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.40% of the stock is currently owned by corporate insiders.

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.