Hsbc Holdings PLC Sells 47,040 Shares of Allegro MicroSystems, Inc. $ALGM

Key Points

• HSBC Holdings PLC cut its stake in Allegro MicroSystems by 54.2% in the fourth quarter, selling 47,040 shares and leaving it with 39,811 shares worth about $1.05 million.
• Allegro MicroSystems’ shares were down 7.3% in Tuesday trading, even as the company reported better-than-expected quarterly results with EPS of $0.17 on revenue of $243.19 million, up 26.1% year over year.
• Analysts remain largely bullish on ALGM, with 10 Buy ratings and a consensus Moderate Buy rating; the average target price is $55.20.

Hsbc Holdings PLC lowered its stake in shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) by 54.2% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 39,811 shares of the company's stock after selling 47,040 shares during the quarter. Hsbc Holdings PLC's holdings in Allegro MicroSystems were worth $1,053,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ALGM. Rockefeller Capital Management L.P. raised its position in Allegro MicroSystems by 470.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 16,876 shares of the company's stock valued at $445,000 after purchasing an additional 13,918 shares in the last quarter. Corient Private Wealth LLC lifted its stake in Allegro MicroSystems by 44.1% during the fourth quarter. Corient Private Wealth LLC now owns 14,457 shares of the company's stock worth $408,000 after purchasing an additional 4,423 shares during the last quarter. Pacer Advisors Inc. boosted its holdings in shares of Allegro MicroSystems by 98.1% in the 4th quarter. Pacer Advisors Inc. now owns 32,313 shares of the company's stock worth $852,000 after purchasing an additional 16,003 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of Allegro MicroSystems by 44.0% in the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock worth $201,835,000 after purchasing an additional 2,338,624 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV increased its position in shares of Allegro MicroSystems by 23.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 10,502 shares of the company's stock valued at $277,000 after purchasing an additional 1,977 shares during the last quarter. 56.45% of the stock is currently owned by hedge funds and other institutional investors.

Allegro MicroSystems Trading Down 7.3%

Shares of ALGM stock opened at $50.85 on Tuesday. The stock has a market capitalization of $9.47 billion, a PE ratio of -564.94 and a beta of 1.90. Allegro MicroSystems, Inc. has a 1-year low of $22.41 and a 1-year high of $71.77. The business has a 50-day moving average of $51.62 and a 200 day moving average of $40.86. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $243.19 million for the quarter, compared to analyst estimates of $235.94 million. During the same period last year, the company earned $0.06 EPS. Allegro MicroSystems'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. As a group, sell-side analysts anticipate that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current year.

Analyst Upgrades and Downgrades

ALGM has been the topic of a number of research reports. Wall Street Zen raised Allegro MicroSystems from a "hold" rating to a "buy" rating in a report on Sunday, June 21st. Jefferies Financial Group reaffirmed a "buy" rating and issued a $62.00 target price on shares of Allegro MicroSystems in a research note on Thursday, May 7th. Needham & Company LLC lifted their price target on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Weiss Ratings restated a "sell (d-)" rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Finally, Mizuho upped their price objective on shares of Allegro MicroSystems from $54.00 to $67.00 and gave the company an "outperform" rating in a research note on Monday, June 29th. Ten equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $55.20.

Insider Transactions at Allegro MicroSystems

In related news, Director Susan D. Lynch sold 16,711 shares of Allegro MicroSystems stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total value of $759,682.06. Following the transaction, the director directly owned 12,805 shares of the company's stock, valued at $582,115.30. The trade was a 56.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Roald Graham Webster sold 5,217 shares of the company's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the sale, the chief accounting officer owned 13,106 shares of the company's stock, valued at $588,197.28. This represents a 28.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 68,607 shares of company stock valued at $3,213,714. 0.50% of the stock is currently owned by insiders.

About Allegro MicroSystems

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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