Allegro MicroSystems Sees Unusually Large Options Volume (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) saw some unusual options trading activity on Tuesday. Traders acquired 15,143 put options on the stock. This represents an increase of 1,402% compared to the average volume of 1,008 put options.

Allegro MicroSystems Stock Down 0.6%

Shares of NASDAQ:ALGM traded down $0.17 during trading hours on Friday, reaching $29.80. The stock had a trading volume of 1,146,788 shares, compared to its average volume of 1,393,079. Allegro MicroSystems has a 1 year low of $16.38 and a 1 year high of $38.45. The firm's 50 day moving average is $32.70 and its 200-day moving average is $27.91. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.26 and a current ratio of 3.70. The stock has a market capitalization of $5.51 billion, a price-to-earnings ratio of 299.70 and a beta of 1.74.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.09 EPS for the quarter, meeting analysts' consensus estimates of $0.09. Allegro MicroSystems had a negative net margin of 9.00% and a positive return on equity of 2.09%. The company had revenue of $203.41 million for the quarter, compared to the consensus estimate of $197.82 million. During the same period in the prior year, the firm posted $0.03 EPS. The company'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. Research analysts predict that Allegro MicroSystems will post 0.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Allegro MicroSystems news, CAO Roald Graham Webster sold 8,266 shares of the business's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $32.81, for a total value of $271,207.46. Following the transaction, the chief accounting officer directly owned 17,300 shares in the company, valued at $567,613. The trade was a 32.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Allegro MicroSystems

Large investors have recently modified their holdings of the company. Invesco Ltd. grew its position in shares of Allegro MicroSystems by 29.3% in the 2nd quarter. Invesco Ltd. now owns 6,254,575 shares of the company's stock valued at $213,844,000 after buying an additional 1,418,934 shares during the last quarter. State Street Corp grew its position in shares of Allegro MicroSystems by 2.1% in the 2nd quarter. State Street Corp now owns 5,193,001 shares of the company's stock valued at $177,549,000 after buying an additional 108,402 shares during the last quarter. Wellington Management Group LLP grew its position in shares of Allegro MicroSystems by 30.5% in the 4th quarter. Wellington Management Group LLP now owns 3,993,682 shares of the company's stock valued at $87,302,000 after buying an additional 934,048 shares during the last quarter. Alliancebernstein L.P. grew its position in shares of Allegro MicroSystems by 189.4% in the 2nd quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock valued at $94,360,000 after buying an additional 1,806,183 shares during the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of Allegro MicroSystems by 6.4% in the 1st quarter. Principal Financial Group Inc. now owns 2,416,102 shares of the company's stock valued at $60,717,000 after buying an additional 144,824 shares during the last quarter. 56.45% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have weighed in on ALGM shares. Needham & Company LLC boosted their target price on shares of Allegro MicroSystems from $25.00 to $37.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Bank of America decreased their price objective on shares of Allegro MicroSystems from $45.00 to $38.00 and set a "buy" rating on the stock in a report on Friday, September 5th. Barclays upped their price objective on shares of Allegro MicroSystems from $23.00 to $30.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. TD Cowen decreased their price objective on shares of Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating on the stock in a report on Friday, August 1st. Finally, Mizuho upped their price objective on shares of Allegro MicroSystems from $37.00 to $40.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $36.78.

Allegro MicroSystems Company 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.