Allegro MicroSystems, Inc. (NASDAQ:ALGM) Sees Significant Decline in Short Interest

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) was the recipient of a significant decline in short interest in the month of January. As of January 15th, there was short interest totalling 10,380,000 shares, a decline of 8.9% from the December 31st total of 11,400,000 shares. Based on an average daily volume of 1,960,000 shares, the days-to-cover ratio is currently 5.3 days. Currently, 8.5% of the shares of the company are sold short.

Allegro MicroSystems Stock Performance

ALGM stock traded up $0.59 during midday trading on Wednesday, hitting $24.53. 1,749,976 shares of the company traded hands, compared to its average volume of 2,522,958. Allegro MicroSystems has a twelve month low of $18.59 and a twelve month high of $33.26. The company has a quick ratio of 3.00, a current ratio of 4.91 and a debt-to-equity ratio of 0.40. The business has a 50 day simple moving average of $22.73 and a 200-day simple moving average of $22.54. The stock has a market capitalization of $4.51 billion, a price-to-earnings ratio of -70.00 and a beta of 1.66.

Insiders Place Their Bets

In related news, SVP Michael Doogue acquired 15,000 shares of the business's stock in a transaction that occurred on Monday, November 18th. The shares were acquired at an average cost of $19.00 per share, for a total transaction of $285,000.00. Following the completion of the purchase, the senior vice president now directly owns 246,086 shares in the company, valued at $4,675,634. This trade represents a 6.49 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Venturi Wealth Management LLC bought a new stake in shares of Allegro MicroSystems in the fourth quarter valued at approximately $47,000. KBC Group NV lifted its holdings in shares of Allegro MicroSystems by 40.9% during the third 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. Van ECK Associates Corp bought a new position in shares of Allegro MicroSystems during the third quarter valued at $172,000. Intech Investment Management LLC acquired a new stake in shares of Allegro MicroSystems in the third quarter valued at $214,000. Finally, nVerses Capital LLC acquired a new stake in shares of Allegro MicroSystems in the third quarter valued at $231,000. Institutional investors and hedge funds own 56.45% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Needham & Company LLC restated a "buy" rating and set a $30.00 price objective on shares of Allegro MicroSystems in a research note on Friday, January 31st. Morgan Stanley lifted 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 note on Monday. Mizuho set a $26.00 price target on shares of Allegro MicroSystems in a research report on Friday, October 18th. Loop Capital began coverage on shares of Allegro MicroSystems in a research report on Tuesday, November 12th. They issued a "buy" rating and a $30.00 price target on the stock. Finally, Wells Fargo & Company upped their price target on shares of Allegro MicroSystems from $23.00 to $27.00 and gave the company an "overweight" rating in a research report on Monday, January 13th. One research analyst has rated the stock with a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat.com, Allegro MicroSystems presently has an average rating of "Moderate Buy" and an average price target of $30.70.

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.