Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down After Earnings Miss

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $22.85, but opened at $22.15. Allegro MicroSystems shares last traded at $22.52, with a volume of 901,840 shares changing hands.

The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.06 by $0.02. The firm had revenue of $187.39 million during the quarter, compared to analyst estimates of $187.52 million. Allegro MicroSystems had a negative net margin of 8.45% and a positive return on equity of 4.31%. The company's revenue for the quarter was down 32.0% on a year-over-year basis. During the same quarter last year, the business posted $0.36 EPS.

Analyst Upgrades and Downgrades

ALGM has been the subject of several research analyst reports. Wells Fargo & Company raised their price target on shares of Allegro MicroSystems from $23.00 to $27.00 and gave the stock an "overweight" rating in a research note on Monday, January 13th. Needham & Company LLC restated a "buy" rating and set a $30.00 price target on shares of Allegro MicroSystems in a research note on Friday. Morgan Stanley raised their price target on shares of Allegro MicroSystems from $21.00 to $23.00 and gave the stock an "equal weight" rating in a research note on Monday. Barclays raised their price target on shares of Allegro MicroSystems from $25.00 to $30.00 and gave the stock an "overweight" rating in a research note on Friday, January 17th. Finally, Mizuho set a $26.00 price target on shares of Allegro MicroSystems in a research note on Friday, October 18th. One analyst has rated the stock with a hold rating and nine have given a buy rating to the company's stock. Based on data from MarketBeat.com, Allegro MicroSystems presently has a consensus rating of "Moderate Buy" and an average target price of $30.70.

Insider Buying and Selling at Allegro MicroSystems

In other news, SVP Michael Doogue purchased 15,000 shares of the business's stock in a transaction on Monday, November 18th. The stock was purchased at an average cost of $19.00 per share, with a total value of $285,000.00. Following the acquisition, the senior vice president now directly owns 246,086 shares in the company, valued at approximately $4,675,634. This trade represents a 6.49 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Westfield Capital Management Co. LP lifted its holdings in shares of Allegro MicroSystems by 54.6% during the 3rd quarter. Westfield Capital Management Co. LP now owns 2,014,481 shares of the company's stock worth $46,937,000 after acquiring an additional 711,185 shares during the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Allegro MicroSystems by 20.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 11,023,628 shares of the company's stock worth $256,851,000 after acquiring an additional 1,884,578 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Allegro MicroSystems by 86.5% during the 3rd quarter. Geode Capital Management LLC now owns 2,561,482 shares of the company's stock worth $59,699,000 after acquiring an additional 1,187,792 shares during the last quarter. Wellington Management Group LLP bought a new stake in Allegro MicroSystems in the third quarter worth $71,289,000. Finally, Pier Capital LLC bought a new stake in Allegro MicroSystems in the third quarter worth $7,514,000. 56.45% of the stock is owned by institutional investors.

Allegro MicroSystems Price Performance

The firm's 50 day simple moving average is $22.67 and its two-hundred day simple moving average is $22.63. The firm has a market capitalization of $4.21 billion, a P/E ratio of -65.62 and a beta of 1.66. The company has a debt-to-equity ratio of 0.40, a current ratio of 4.91 and a quick ratio of 3.00.

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.