Kettle Hill Capital Management LLC Sells 729,608 Shares of Allegro MicroSystems, Inc. $ALGM

Key Points

• Kettle Hill Capital Management LLC has significantly reduced its holdings in Allegro MicroSystems, selling 729,608 shares and bringing its total ownership down by 88.7%.
• Analysts are divided on Allegro MicroSystems, with price targets ranging from $23.00 to $42.00, indicating varied outlooks on the company's performance.
• Allegro MicroSystems reported a revenue increase of 21.9% year-over-year, meeting earnings expectations with a reported $0.09 EPS.

Kettle Hill Capital Management LLC trimmed its position in shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) by 88.7% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 93,393 shares of the company's stock after selling 729,608 shares during the quarter. Kettle Hill Capital Management LLC owned 0.05% of Allegro MicroSystems worth $2,347,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently made changes to their positions in the company. Fifth Third Bancorp increased its holdings in shares of Allegro MicroSystems by 63.7% during the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock valued at $33,000 after acquiring an additional 504 shares in the last quarter. UMB Bank n.a. grew its holdings in shares of Allegro MicroSystems by 68.6% during the 1st quarter. UMB Bank n.a. now owns 1,420 shares of the company's stock worth $36,000 after purchasing an additional 578 shares during the period. DekaBank Deutsche Girozentrale purchased a new position in Allegro MicroSystems during the 1st quarter valued at about $71,000. Summit Securities Group LLC raised its position in shares of Allegro MicroSystems by 257.8% during the 1st quarter. Summit Securities Group LLC now owns 4,000 shares of the company's stock worth $101,000 after acquiring an additional 2,882 shares in the last quarter. Finally, GAMMA Investing LLC increased its position in Allegro MicroSystems by 144.3% during the first quarter. GAMMA Investing LLC now owns 4,155 shares of the company's stock worth $104,000 after buying an additional 2,454 shares during the period. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems Stock Performance

ALGM stock traded up $0.53 on Tuesday, hitting $30.92. The company's stock had a trading volume of 1,494,089 shares, compared to its average volume of 2,694,313. Allegro MicroSystems, Inc. has a 1 year low of $16.38 and a 1 year high of $38.45. The stock has a market cap of $5.72 billion, a price-to-earnings ratio of -83.57 and a beta of 1.74. The company has a current ratio of 3.70, a quick ratio of 2.26 and a debt-to-equity ratio of 0.34. The firm has a 50 day moving average of $32.99 and a two-hundred day moving average of $27.83.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.09 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.09. The business had revenue of $203.41 million for 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%. The company's quarterly revenue was up 21.9% on a year-over-year basis. During the same period last year, the company earned $0.03 earnings per share. Allegro MicroSystems has set its Q2 2026 guidance at 0.100-0.140 EPS. Equities analysts predict that Allegro MicroSystems, Inc. will post 0.01 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have commented on ALGM. Bank of America decreased their target price on Allegro MicroSystems from $45.00 to $38.00 and set a "buy" rating on the stock in a research report on Friday. Morgan Stanley dropped their price target on 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. Zacks Research raised Allegro MicroSystems to a "hold" rating in a research report on Monday, August 11th. Needham & Company LLC upped their price objective on Allegro MicroSystems from $25.00 to $37.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Finally, Wall Street Zen raised Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $36.78.

Insider Transactions at Allegro MicroSystems

In related news, CAO Roald Graham Webster sold 8,266 shares of the stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $32.81, for a total value of $271,207.46. Following the sale, the chief accounting officer directly owned 17,300 shares in the company, valued at $567,613. This trade represents a 32.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.40% of the stock is currently owned by company insiders.

About Allegro MicroSystems

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.