Morgan Stanley Initiates Coverage on Allegro MicroSystems (NASDAQ:ALGM)

Stock analysts at Morgan Stanley started coverage on shares of Allegro MicroSystems (NASDAQ:ALGM) in a report issued on Thursday, Briefing.com reports. The brokerage set an “equal weight” rating and a $21.00 price target on the stock. Morgan Stanley’s target price would suggest a potential downside of 4.59% from the company’s previous close.

A number of other research analysts have also recently issued reports on ALGM. Mizuho set a $26.00 price target on shares of Allegro MicroSystems in a research report on Friday, October 18th. Needham & Company LLC lowered their target price on shares of Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating for the company in a report on Thursday, October 31st. UBS Group began coverage on Allegro MicroSystems in a research report on Tuesday, September 3rd. They set a “buy” rating and a $33.00 price objective for the company. Finally, Barclays dropped their target price on Allegro MicroSystems from $32.00 to $25.00 and set an “overweight” rating on the stock in a report on Friday, November 1st. One research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat, Allegro MicroSystems presently has an average rating of “Moderate Buy” and an average target price of $30.89.

Allegro MicroSystems Stock Performance

Shares of ALGM opened at $22.01 on Thursday. The company has a 50-day simple moving average of $22.08 and a two-hundred day simple moving average of $25.83. The company has a debt-to-equity ratio of 0.42, a current ratio of 4.22 and a quick ratio of 2.80. The firm has a market capitalization of $4.05 billion, a PE ratio of -157.21 and a beta of 1.69. Allegro MicroSystems has a one year low of $19.71 and a one year high of $33.26.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, October 31st. The company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of $0.06 by $0.02. The company had revenue of $187.39 million during the quarter, compared to analysts’ expectations of $187.52 million. Allegro MicroSystems had a positive return on equity of 8.47% and a negative net margin of 2.96%. The firm’s revenue for the quarter was down 32.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.36 EPS. On average, analysts anticipate that Allegro MicroSystems will post 0.16 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Versant Capital Management Inc raised its stake in Allegro MicroSystems by 1,957.1% during the 2nd quarter. Versant Capital Management Inc now owns 1,152 shares of the company’s stock valued at $33,000 after buying an additional 1,096 shares during the last quarter. GAMMA Investing LLC boosted its stake in shares of Allegro MicroSystems by 52.2% during the 2nd quarter. GAMMA Investing LLC now owns 1,759 shares of the company’s stock worth $50,000 after acquiring an additional 603 shares during the last quarter. KBC Group NV grew its position in shares of Allegro MicroSystems by 40.9% during the 3rd quarter. KBC Group NV now owns 3,590 shares of the company’s stock valued at $84,000 after acquiring an additional 1,042 shares during the period. CWM LLC increased its stake in shares of Allegro MicroSystems by 27.7% in the 2nd quarter. CWM LLC now owns 4,241 shares of the company’s stock worth $120,000 after purchasing an additional 921 shares in the last quarter. Finally, Van ECK Associates Corp bought a new position in Allegro MicroSystems in the 3rd quarter worth $172,000. Institutional investors own 56.45% of the company’s stock.

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.