Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down – Time to Sell?

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares gapped down prior to trading on Wednesday . The stock had previously closed at $41.69, but opened at $39.75. Allegro MicroSystems shares last traded at $38.63, with a volume of 1,940,546 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on ALGM shares. Morgan Stanley raised shares of Allegro MicroSystems from an “equal weight” rating to an “overweight” rating and set a $51.00 price objective for the company in a research report on Friday, February 13th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Allegro MicroSystems in a report on Monday, December 29th. Barclays boosted their price target on shares of Allegro MicroSystems from $35.00 to $46.00 and gave the company an “overweight” rating in a research report on Friday, January 30th. Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Finally, TD Cowen upped their target price on Allegro MicroSystems from $38.00 to $45.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $44.40.

Allegro MicroSystems Trading Down 7.4%

The company has a market cap of $7.15 billion, a P/E ratio of -482.48 and a beta of 1.63. The company has a current ratio of 3.65, a quick ratio of 2.39 and a debt-to-equity ratio of 0.30. The stock’s 50 day moving average is $32.55 and its 200-day moving average is $30.30.

Allegro MicroSystems (NASDAQ:ALGM) last issued its earnings results on Thursday, January 29th. The company reported $0.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.01. The business had revenue of $229.21 million during the quarter, compared to analyst estimates of $220.78 million. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.Allegro MicroSystems’s revenue was up 28.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 EPS. Research analysts anticipate that Allegro MicroSystems, Inc. will post 0.01 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Candriam S.C.A. bought a new position in shares of Allegro MicroSystems during the third quarter valued at approximately $2,604,000. Geode Capital Management LLC boosted its holdings in shares of Allegro MicroSystems by 0.7% in the second quarter. Geode Capital Management LLC now owns 2,405,986 shares of the company’s stock valued at $82,274,000 after purchasing an additional 17,902 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Allegro MicroSystems in the second quarter valued at about $481,000. Norges Bank bought a new stake in shares of Allegro MicroSystems in the 2nd quarter valued at about $48,138,000. Finally, Entropy Technologies LP purchased a new position in Allegro MicroSystems during the second quarter valued at approximately $644,000. 56.45% of the stock is owned by hedge funds and other institutional investors.

About Allegro MicroSystems

Allegro MicroSystems, Inc (NASDAQ: ALGM) is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro’s product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.