Norges Bank Takes $38.46 Million Position in Allegro MicroSystems, Inc. $ALGM

Key Points

• Norges Bank opened a new position in Allegro MicroSystems, buying 1,457,805 shares worth about $38.46 million and holding roughly 0.79% of the company.
• Allegro MicroSystems reported strong quarterly results, with EPS of $0.17 beating estimates and revenue rising 26.1% year over year to $243.19 million.
• Analyst sentiment is positive, with several firms raising price targets and the stock receiving an average “Moderate Buy” rating with a consensus target of $51.80.

Norges Bank bought a new position in shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 1,457,805 shares of the company's stock, valued at approximately $38,457,000. Norges Bank owned about 0.79% of Allegro MicroSystems as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Royal Bank of Canada increased its holdings in Allegro MicroSystems by 70.0% in the first quarter. Royal Bank of Canada now owns 117,923 shares of the company's stock valued at $2,964,000 after buying an additional 48,554 shares during the last quarter. AQR Capital Management LLC bought a new stake in Allegro MicroSystems during the first quarter valued at $325,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Allegro MicroSystems by 31.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 354,610 shares of the company's stock valued at $8,911,000 after purchasing an additional 85,607 shares during the last quarter. Prudential Financial Inc. increased its stake in Allegro MicroSystems by 24.0% during the second quarter. Prudential Financial Inc. now owns 15,684 shares of the company's stock valued at $536,000 after purchasing an additional 3,040 shares during the last quarter. Finally, First Trust Advisors LP increased its stake in Allegro MicroSystems by 5.4% during the second quarter. First Trust Advisors LP now owns 576,478 shares of the company's stock valued at $19,710,000 after purchasing an additional 29,531 shares during the last quarter. Institutional investors own 56.45% of the company's stock.

Allegro MicroSystems Stock Up 3.9%

Allegro MicroSystems stock opened at $48.19 on Tuesday. Allegro MicroSystems, Inc. has a one year low of $22.41 and a one year high of $54.40. The firm has a market capitalization of $8.97 billion, a P/E ratio of -535.38 and a beta of 1.98. The company has a 50-day simple moving average of $42.66 and a 200-day simple moving average of $35.74. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.21 and a current ratio of 3.45.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $235.94 million. During the same period in the prior year, the company posted $0.06 EPS. The business'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, equities analysts expect that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. Barclays boosted their target price on shares of Allegro MicroSystems from $46.00 to $48.00 and gave the company an "overweight" rating in a research note on Friday, May 8th. Wells Fargo & Company upped their target price on Allegro MicroSystems from $48.00 to $56.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Needham & Company LLC upped their target price on Allegro MicroSystems from $45.00 to $55.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Morgan Stanley raised Allegro MicroSystems from an "equal weight" rating to an "overweight" rating and set a $51.00 target price for the company in a report on Friday, February 13th. Finally, Mizuho upped their target price on Allegro MicroSystems from $44.00 to $54.00 and gave the company an "outperform" rating in a report on Friday, May 8th. Ten analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Allegro MicroSystems presently has an average rating of "Moderate Buy" and an average target price of $51.80.

Insiders Place Their Bets

In related news, CEO Michael Doogue sold 30,089 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $47.23, for a total value of $1,421,103.47. Following the completion of the transaction, the chief executive officer directly owned 252,797 shares of the company's stock, valued at $11,939,602.31. This represents a 10.64% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Roald Graham Webster sold 5,217 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $44.88, for a total value of $234,138.96. Following the completion of the transaction, the chief accounting officer directly owned 13,106 shares of the company's stock, valued at $588,197.28. This trade represents a 28.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 68,607 shares of company stock worth $3,213,714. 0.40% of the stock is owned by company insiders.

Allegro MicroSystems Profile

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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