Allegro MicroSystems (NASDAQ:ALGM) Stock Crosses Above 50 Day Moving Average - Here's What Happened

Key Points

• Allegro MicroSystems shares crossed above their 50-day moving average of $35.33, reaching $35.62 during trading and closing near $35.37 on heavy volume.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $51.58; individual targets range from $45 to $60.
• The company recently beat quarterly estimates, reporting $0.23 in earnings per share and $259.24 million in revenue, with revenue up 27.5% year over year.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) shares crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $35.33 and traded as high as $35.62. Allegro MicroSystems shares last traded at $35.37, with a volume of 6,220,043 shares traded.

Analysts Set New Price Targets

ALGM has been the subject of several recent research reports. Needham & Company LLC boosted their price target on Allegro MicroSystems from $55.00 to $57.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Benchmark assumed coverage on Allegro MicroSystems in a research note on Wednesday, August 12th. They set a "buy" rating and a $60.00 price objective on the stock. Morgan Stanley lifted their price objective on Allegro MicroSystems from $51.00 to $52.00 and gave the company an "overweight" rating in a report on Friday, July 31st. Wells Fargo & Company cut their target price on Allegro MicroSystems from $56.00 to $45.00 and set an "overweight" rating for the company in a research report on Tuesday, October 20th. Finally, Wall Street Zen raised Allegro MicroSystems from a "hold" rating to a "buy" rating in a report on Sunday, August 2nd. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Allegro MicroSystems presently has a consensus rating of "Moderate Buy" and a consensus price target of $51.58.

Allegro MicroSystems Stock Up 4.1%

The firm's 50-day moving average price is $35.33 and its 200 day moving average price is $40.65. The company has a market capitalization of $6.59 billion, a price-to-earnings ratio of 589.60, a PEG ratio of 0.99 and a beta of 1.99. The company has a current ratio of 3.70, a quick ratio of 2.33 and a debt-to-equity ratio of 0.30.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.21 by $0.02. The company had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The firm's quarterly revenue was up 27.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.09 EPS. On average, sell-side analysts forecast that Allegro MicroSystems, Inc. will post 0.65 EPS for the current fiscal year.

Insiders Place Their Bets

In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $44.39, for a total transaction of $101,431.15. Following the completion of the sale, the senior vice president directly owned 31,052 shares in the company, valued at $1,378,398.28. This represents a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Allegro MicroSystems

A number of large investors have recently modified their holdings of ALGM. BlackRock Inc. acquired a new position in shares of Allegro MicroSystems during the 2nd quarter worth $966,975,000. Dimensional Fund Advisors LP boosted its stake in Allegro MicroSystems by 1.4% in the first quarter. Dimensional Fund Advisors LP now owns 2,170,487 shares of the company's stock valued at $68,399,000 after buying an additional 30,340 shares in the last quarter. Principal Financial Group Inc. boosted its stake in Allegro MicroSystems by 2.8% in the first quarter. Principal Financial Group Inc. now owns 1,790,466 shares of the company's stock valued at $56,453,000 after buying an additional 48,170 shares in the last quarter. Bank of America Corp DE bought a new position in Allegro MicroSystems in the second quarter valued at about $64,171,000. Finally, Wellington Management Group LLP grew its position in Allegro MicroSystems by 21.1% in the second quarter. Wellington Management Group LLP now owns 814,937 shares of the company's stock valued at $56,736,000 after acquiring an additional 141,841 shares during the last quarter. Institutional investors and hedge funds own 56.45% of the company's stock.

About Allegro MicroSystems

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company's portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.