Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down - Should You Sell?

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $18.06, but opened at $17.40. Allegro MicroSystems shares last traded at $16.89, with a volume of 225,539 shares changing hands.

Wall Street Analysts Forecast Growth

ALGM has been the subject of several recent research reports. Wells Fargo & Company lifted their target price 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 reiterated a "buy" rating and issued a $30.00 price objective on shares of Allegro MicroSystems in a research note on Monday, February 24th. Mizuho raised their price target on Allegro MicroSystems from $28.00 to $31.00 and gave the stock an "outperform" rating in a report on Monday, March 24th. Barclays decreased their price target on Allegro MicroSystems from $30.00 to $22.00 and set an "overweight" rating on the stock in a research report on Tuesday. Finally, Morgan Stanley raised their price objective on shares of Allegro MicroSystems from $21.00 to $23.00 and gave the company an "equal weight" rating in a research report on Monday, February 3rd. One research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $29.78.

Allegro MicroSystems Stock Performance

The company has a market capitalization of $3.48 billion, a P/E ratio of -54.30 and a beta of 1.53. The business's fifty day simple moving average is $23.95 and its 200-day simple moving average is $22.81. The company has a debt-to-equity ratio of 0.40, a quick ratio of 3.00 and a current ratio of 4.91.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. grew its stake in shares of Allegro MicroSystems by 20.6% during the third quarter. JPMorgan Chase & Co. now owns 11,023,628 shares of the company's stock valued at $256,851,000 after buying an additional 1,884,578 shares during the last quarter. Schonfeld Strategic Advisors LLC purchased a new stake in shares of Allegro MicroSystems during the fourth quarter valued at $35,433,000. Paloma Partners Management Co increased its stake in Allegro MicroSystems by 312.8% in the 4th quarter. Paloma Partners Management Co now owns 2,103,800 shares of the company's stock worth $45,989,000 after buying an additional 1,594,170 shares during the period. Norges Bank bought a new position in Allegro MicroSystems in the 4th quarter worth about $26,926,000. Finally, Meridiem Capital Partners LP purchased a new stake in shares of Allegro MicroSystems in the fourth quarter valued at approximately $25,140,000. 56.45% of the stock is currently owned by institutional investors.

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.