Legato Capital Management LLC Purchases Shares of 13,500 Allegro MicroSystems, Inc. (NASDAQ:ALGM)

Key Points

• Legato Capital Management LLC acquired 13,500 shares of Allegro MicroSystems, valued at approximately $339,000, during the 1st quarter, according to a recent 13F filing.
• Several analysts have raised their price targets for Allegro MicroSystems, with Bank of America setting a new target of $45.00 and others showing general optimism with ratings ranging from "buy" to "action list buy."
• Institutional investors own over 56% of Allegro MicroSystems, indicating significant institutional backing, with recent movements including new positions and increased holdings from multiple investment firms.

Legato Capital Management LLC bought a new stake in Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 13,500 shares of the company's stock, valued at approximately $339,000.

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

Allegro MicroSystems Stock Performance

Allegro MicroSystems stock traded down $0.34 on Tuesday, hitting $34.03. The company's stock had a trading volume of 318,736 shares, compared to its average volume of 2,927,465. Allegro MicroSystems, Inc. has a one year low of $16.38 and a one year high of $38.45. The company has a fifty day moving average price of $31.76 and a 200-day moving average price of $26.44. The company has a quick ratio of 2.66, a current ratio of 4.30 and a debt-to-equity ratio of 0.37. The firm has a market cap of $6.29 billion, a P/E ratio of -87.24 and a beta of 1.75.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.01. Allegro MicroSystems had a positive return on equity of 1.04% and a negative net margin of 10.07%. The business had revenue of $192.82 million during the quarter, compared to the consensus estimate of $185.35 million. During the same quarter in the previous year, the firm earned $0.25 earnings per share. Allegro MicroSystems's revenue for the quarter was down 19.9% compared to the same quarter last year. On average, equities analysts anticipate that Allegro MicroSystems, Inc. will post 0.01 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have commented on ALGM. Mizuho increased their target price on Allegro MicroSystems from $31.00 to $37.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. Wells Fargo & Company restated an "overweight" rating and set a $42.00 target price (up previously from $33.00) on shares of Allegro MicroSystems in a research report on Wednesday, July 16th. UBS Group upped their target price on Allegro MicroSystems from $35.00 to $42.00 and gave the stock a "buy" rating in a report on Monday, July 7th. Needham & Company LLC cut their target price on Allegro MicroSystems from $30.00 to $25.00 and set a "buy" rating on the stock in a research report on Friday, May 9th. Finally, Morgan Stanley increased their price target on Allegro MicroSystems from $23.00 to $25.00 and gave the stock an "equal weight" rating in a research report on Monday, June 9th. One analyst has rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $33.63.

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.