Allegro MicroSystems (NASDAQ:ALGM) Reaches New 1-Year Low - Should You Sell?

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s stock price reached a new 52-week low on Tuesday . The stock traded as low as $19.71 and last traded at $20.13, with a volume of 109609 shares trading hands. The stock had previously closed at $20.28.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. Mizuho set a $26.00 target price on shares of Allegro MicroSystems in a report on Friday, October 18th. UBS Group started coverage on shares of Allegro MicroSystems in a research note on Tuesday, September 3rd. They set a "buy" rating and a $33.00 target price on the stock. Needham & Company LLC cut their target price on shares of Allegro MicroSystems from $33.00 to $30.00 and set a "buy" rating on the stock in a research note on Thursday, October 31st. Finally, Barclays cut their target price on shares of Allegro MicroSystems from $32.00 to $25.00 and set an "overweight" rating on the stock in a research note on Friday. Eight analysts have rated the stock with a buy rating, Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $32.13.

Allegro MicroSystems Stock Performance

The stock's 50-day simple moving average is $22.16 and its 200 day simple moving average is $25.87. The company has a debt-to-equity ratio of 0.42, a quick ratio of 2.80 and a current ratio of 4.22. The company has a market capitalization of $4.00 billion, a PE ratio of -147.42 and a beta of 1.69.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its earnings results on Thursday, October 31st. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.02. Allegro MicroSystems had a negative net margin of 2.96% and a positive return on equity of 8.47%. The business had revenue of $187.39 million during the quarter, compared to analysts' expectations of $187.52 million. During the same quarter in the prior year, the business posted $0.36 EPS. The company's revenue for the quarter was down 32.0% on a year-over-year basis. As a group, research analysts expect that Allegro MicroSystems, Inc. will post 0.16 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Electric Co. Ltd. Sanken sold 10,017,315 shares of the stock in a transaction on Wednesday, August 7th. The shares were sold at an average price of $23.16, for a total transaction of $232,001,015.40. Following the completion of the sale, the insider now owns 59,732,782 shares in the company, valued at $1,383,411,231.12. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.50% of the company's stock.

Institutional Trading of Allegro MicroSystems

A number of large investors have recently bought and sold shares of the business. State of Michigan Retirement System boosted its stake in Allegro MicroSystems by 2.3% during the 1st quarter. State of Michigan Retirement System now owns 17,500 shares of the company's stock worth $472,000 after purchasing an additional 400 shares during the period. GAMMA Investing LLC lifted its stake in shares of Allegro MicroSystems by 52.2% in 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 period. CWM LLC lifted 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 acquiring an additional 921 shares during the period. Texas Permanent School Fund Corp lifted its stake in shares of Allegro MicroSystems by 1.7% in the 1st quarter. Texas Permanent School Fund Corp now owns 62,538 shares of the company's stock worth $1,686,000 after acquiring an additional 1,019 shares during the period. Finally, Versant Capital Management Inc lifted its stake in shares of 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 acquiring an additional 1,096 shares during the period. Institutional investors and hedge funds 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.