Allegro MicroSystems (NASDAQ:ALGM) Stock Price Up 8.9% – Should You Buy?

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares traded up 8.9% on Thursday . The stock traded as high as $29.45 and last traded at $29.16. 1,986,120 shares were traded during trading, a decline of 33% from the average session volume of 2,956,173 shares. The stock had previously closed at $26.78.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Barclays lifted their price objective on shares of Allegro MicroSystems from $25.00 to $30.00 and gave the stock an “overweight” rating in a research report on Friday, January 17th. Needham & Company LLC reaffirmed a “buy” rating and issued a $30.00 price target on shares of Allegro MicroSystems in a report on Monday, February 24th. Wells Fargo & Company upped their price objective on Allegro MicroSystems from $23.00 to $27.00 and gave the company an “overweight” rating in a research note on Monday, January 13th. Loop Capital began coverage on Allegro MicroSystems in a research report on Tuesday, November 12th. They issued a “buy” rating and a $30.00 target price for the company. Finally, Morgan Stanley upped their price target on 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 equities research analyst has rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $30.70.

Allegro MicroSystems Stock Performance

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 company has a market capitalization of $5.26 billion, a PE ratio of -81.59 and a beta of 1.67. The company has a 50-day moving average price of $24.11 and a two-hundred day moving average price of $22.73.

Institutional Investors Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently modified their holdings of ALGM. TD Waterhouse Canada Inc. purchased a new position in Allegro MicroSystems during the fourth quarter valued at approximately $40,000. Venturi Wealth Management LLC bought a new position in Allegro MicroSystems in the 4th quarter valued at $47,000. Quarry LP purchased a new position in shares of Allegro MicroSystems during the 4th quarter valued at $79,000. KBC Group NV increased its holdings in shares of Allegro MicroSystems by 40.9% in the third quarter. KBC Group NV now owns 3,590 shares of the company’s stock worth $84,000 after purchasing an additional 1,042 shares during the period. Finally, Sterling Capital Management LLC increased its holdings in shares of Allegro MicroSystems by 59.9% in the fourth quarter. Sterling Capital Management LLC now owns 7,364 shares of the company’s stock worth $161,000 after purchasing an additional 2,758 shares during the period. 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.