Needham & Company LLC Reiterates “Buy” Rating for Allegro MicroSystems (NASDAQ:ALGM)

Needham & Company LLC restated their buy rating on shares of Allegro MicroSystems (NASDAQ:ALGM) in a research report sent to investors on Friday, Benzinga reports. The firm currently has a $33.00 price target on the stock.

ALGM has been the subject of several other reports. TD Cowen raised their price objective on shares of Allegro MicroSystems from $32.00 to $35.00 and gave the stock a buy rating in a report on Thursday, June 13th. Jefferies Financial Group began coverage on shares of Allegro MicroSystems in a research report on Monday, May 13th. They set a buy rating and a $37.00 price target for the company. Barclays reduced their price target on shares of Allegro MicroSystems from $35.00 to $32.00 and set an overweight rating for the company in a research report on Friday, May 10th. Mizuho cut their target price on shares of Allegro MicroSystems from $45.00 to $35.00 and set a buy rating for the company in a research report on Friday, May 10th. Finally, Evercore ISI initiated coverage on shares of Allegro MicroSystems in a research report on Tuesday, April 16th. They issued an outperform rating and a $36.00 target price for the company. One research analyst has rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of Moderate Buy and an average price target of $34.63.

Allegro MicroSystems Stock Performance

Allegro MicroSystems stock opened at $21.40 on Friday. The company has a current ratio of 4.65, a quick ratio of 3.48 and a debt-to-equity ratio of 0.18. Allegro MicroSystems has a 1-year low of $21.20 and a 1-year high of $42.51. The firm has a 50-day moving average of $28.49 and a 200-day moving average of $28.73. The firm has a market cap of $4.15 billion, a P/E ratio of 27.44 and a beta of 1.68.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings data on Thursday, August 1st. The company reported $0.03 EPS for the quarter, topping the consensus estimate of $0.02 by $0.01. Allegro MicroSystems had a net margin of 7.91% and a return on equity of 13.88%. The business had revenue of $166.90 million during the quarter, compared to analyst estimates of $165.04 million. During the same period last year, the business posted $0.34 earnings per share. Allegro MicroSystems’s quarterly revenue was down 40.0% compared to the same quarter last year. Sell-side analysts expect that Allegro MicroSystems will post 0.23 EPS for the current year.

Insider Buying and Selling

In related news, major shareholder Electric Co. Ltd. Sanken sold 28,750,000 shares of the company’s stock in a transaction on Monday, July 29th. The shares were sold at an average price of $23.16, for a total value of $665,850,000.00. Following the completion of the transaction, the insider now owns 69,750,097 shares of the company’s stock, valued at approximately $1,615,412,246.52. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other news, Director Richard R. Lury sold 8,500 shares of the company’s stock in a transaction dated Thursday, May 30th. The shares were sold at an average price of $30.00, for a total transaction of $255,000.00. Following the sale, the director now directly owns 23,001 shares in the company, valued at approximately $690,030. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Electric Co. Ltd. Sanken sold 28,750,000 shares of the company’s stock in a transaction dated Monday, July 29th. The shares were sold at an average price of $23.16, for a total transaction of $665,850,000.00. Following the sale, the insider now owns 69,750,097 shares in the company, valued at $1,615,412,246.52. The disclosure for this sale can be found here. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Allegro MicroSystems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC purchased a new stake in Allegro MicroSystems in the 4th quarter worth about $28,000. Versant Capital Management Inc raised its position in Allegro MicroSystems by 1,957.1% in the 2nd quarter. Versant Capital Management Inc now owns 1,152 shares of the company’s stock worth $33,000 after purchasing an additional 1,096 shares during the period. Pineridge Advisors LLC purchased a new stake in Allegro MicroSystems in the 4th quarter worth about $49,000. Quadrant Capital Group LLC raised its position in Allegro MicroSystems by 25.1% in the 4th quarter. Quadrant Capital Group LLC now owns 2,115 shares of the company’s stock worth $64,000 after purchasing an additional 425 shares during the period. Finally, Psagot Value Holdings Ltd. Israel raised its position in Allegro MicroSystems by 28.5% in the 4th quarter. Psagot Value Holdings Ltd. Israel now owns 2,262 shares of the company’s stock worth $70,000 after purchasing an additional 502 shares during the period. 56.45% of the stock is owned by hedge funds and other institutional investors.

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; power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers; and photonic and advanced 3D sensing components.