Traders Buy High Volume of Allegro MicroSystems Put Options (NASDAQ:ALGM)

Key Points

• Investors have recently purchased an unusual volume of 15,143 put options for Allegro MicroSystems, indicating a rise of approximately 1,402% compared to typical trading volumes.
• Chief Accounting Officer Roald Graham Webster sold 8,266 shares of the company, representing a 32.33% decrease in his position.
• Institutional investors own over 56.45% of Allegro MicroSystems, with significant increases in holdings from firms like Northern Trust Corp and Deutsche Bank AG in the recent quarter.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) was the target of unusually large options trading on Tuesday. Stock investors acquired 15,143 put options on the stock. This represents an increase of 1,402% compared to the typical volume of 1,008 put options.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ALGM. TD Cowen lowered their target price on Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating for the company in a report on Friday, August 1st. Mizuho upped their price objective on Allegro MicroSystems from $37.00 to $40.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Wells Fargo & Company restated an "overweight" rating and set a $42.00 price objective (up from $33.00) on shares of Allegro MicroSystems in a research note on Wednesday, July 16th. Morgan Stanley decreased their price objective on Allegro MicroSystems from $38.00 to $35.00 and set an "equal weight" rating for the company in a research note on Friday, August 1st. Finally, Needham & Company LLC upped their price objective on Allegro MicroSystems from $25.00 to $37.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $36.78.

Insider Buying and Selling at Allegro MicroSystems

In other Allegro MicroSystems news, CAO Roald Graham Webster sold 8,266 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $32.81, for a total value of $271,207.46. Following the completion of the sale, the chief accounting officer directly owned 17,300 shares in the company, valued at approximately $567,613. This represents a 32.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ALGM. Northern Trust Corp increased its position in Allegro MicroSystems by 13.6% during the 4th quarter. Northern Trust Corp now owns 1,074,433 shares of the company's stock valued at $23,487,000 after buying an additional 128,726 shares in the last quarter. Deutsche Bank AG increased its position in Allegro MicroSystems by 295.9% during the 4th quarter. Deutsche Bank AG now owns 26,237 shares of the company's stock valued at $574,000 after buying an additional 19,609 shares in the last quarter. Janus Henderson Group PLC increased its position in Allegro MicroSystems by 11.9% during the 4th quarter. Janus Henderson Group PLC now owns 57,329 shares of the company's stock valued at $1,255,000 after buying an additional 6,100 shares in the last quarter. LMR Partners LLP acquired a new position in Allegro MicroSystems during the 4th quarter valued at about $3,279,000. Finally, Lazard Asset Management LLC increased its position in Allegro MicroSystems by 22.2% during the 4th quarter. Lazard Asset Management LLC now owns 404,702 shares of the company's stock valued at $8,846,000 after buying an additional 73,439 shares in the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

Allegro MicroSystems Stock Down 0.6%

NASDAQ:ALGM traded down $0.17 during mid-day trading on Friday, hitting $29.80. 1,146,788 shares of the company's stock traded hands, compared to its average volume of 1,393,079. The company has a fifty day moving average of $32.57 and a 200 day moving average of $27.98. Allegro MicroSystems has a twelve month low of $16.38 and a twelve month high of $38.45. The company has a market capitalization of $5.51 billion, a P/E ratio of -80.54 and a beta of 1.74. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.26 and a current ratio of 3.70.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.09 earnings per share (EPS) for the quarter, meeting 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 analyst estimates of $197.82 million. During the same period in the prior year, the company posted $0.03 EPS. The firm's quarterly revenue was up 21.9% compared to the same quarter last year. Allegro MicroSystems has set its Q2 2026 guidance at 0.100-0.140 EPS. On average, analysts forecast that Allegro MicroSystems will post 0.01 EPS for the current year.

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.