Kodai Capital Management LP Takes Position in Allegro MicroSystems, Inc. $ALGM

Key Points

• Kodai Capital Management LP acquired approximately 1.66 million shares of Allegro MicroSystems, valued at around $41.6 million, making it the firm’s 15th largest investment.
• Analysts are optimistic about Allegro MicroSystems, with Barclays raising its price target from $23 to $30, while Bank of America increased its target from $38 to $45, reflecting strong market confidence.
• The stock of Allegro MicroSystems is currently trading at around $32 and has shown a 21.9% year-over-year revenue increase, indicating positive growth trends in the company’s performance.

Kodai Capital Management LP bought a new stake in Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 1,655,806 shares of the company's stock, valued at approximately $41,610,000. Allegro MicroSystems accounts for 1.6% of Kodai Capital Management LP's investment portfolio, making the stock its 15th biggest position. Kodai Capital Management LP owned 0.90% of Allegro MicroSystems as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Fifth Third Bancorp raised its position in Allegro MicroSystems by 63.7% in the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock valued at $33,000 after purchasing an additional 504 shares during the period. UMB Bank n.a. raised its position in Allegro MicroSystems by 68.6% in the first 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 period. DekaBank Deutsche Girozentrale purchased a new stake in Allegro MicroSystems in the first quarter valued at $71,000. Quarry LP purchased a new stake in Allegro MicroSystems in the fourth quarter valued at $79,000. Finally, Summit Securities Group LLC raised its position in Allegro MicroSystems by 257.8% in the first quarter. Summit Securities Group LLC now owns 4,000 shares of the company's stock valued at $101,000 after purchasing an additional 2,882 shares during the period. Hedge funds and other institutional investors own 56.45% of the company's stock.

Insiders Place Their Bets

In other Allegro MicroSystems news, CAO Roald Graham Webster sold 8,266 shares of the company's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $32.81, for a total transaction of $271,207.46. Following 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 through this link. 0.40% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. Wells Fargo & Company restated an "overweight" rating and issued a $42.00 target price (up previously from $33.00) on shares of Allegro MicroSystems in a research report on Wednesday, July 16th. Wall Street Zen upgraded Allegro MicroSystems from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. UBS Group boosted their price objective on Allegro MicroSystems from $35.00 to $42.00 and gave the company a "buy" rating in a report on Monday, July 7th. TD Cowen cut their price objective on Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating on the stock in a report on Friday, August 1st. Finally, Barclays boosted their price objective on Allegro MicroSystems from $23.00 to $30.00 and gave the company an "overweight" rating in a report on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $37.56.

Allegro MicroSystems Stock Down 2.6%

NASDAQ ALGM traded down $0.80 during trading hours on Wednesday, hitting $29.70. 369,486 shares of the company were exchanged, compared to its average volume of 2,718,006. The company has a 50 day moving average of $33.27 and a two-hundred day moving average of $27.73. 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 52-week low of $16.38 and a 52-week high of $38.45. The firm has a market cap of $5.50 billion, a price-to-earnings ratio of -80.29 and a beta of 1.74.

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 the consensus estimate of $0.09. Allegro MicroSystems had a positive return on equity of 2.09% and a negative net margin of 9.00%.The company had revenue of $203.41 million for the quarter, compared to the consensus estimate of $197.82 million. During the same quarter in the prior year, the business earned $0.03 EPS. Allegro MicroSystems's revenue was up 21.9% on a year-over-year basis. Allegro MicroSystems has set its Q2 2026 guidance at 0.100-0.140 EPS. Equities research analysts anticipate that Allegro MicroSystems, Inc. will post 0.01 earnings per share for the current year.

Allegro MicroSystems 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.