Stock Traders Buy Large Volume of Put Options on Allegro MicroSystems (NASDAQ:ALGM)

Allegro MicroSystems, Inc. (NASDAQ:ALGM) saw unusually large options trading activity on Wednesday. Investors bought 18,618 put options on the stock. This is an increase of 762% compared to the average volume of 2,161 put options.

Insider Transactions at Allegro MicroSystems

In related news, major shareholder Electric Co. Ltd. Sanken sold 10,017,315 shares of the business’s stock in a transaction that occurred on Wednesday, August 7th. The stock was sold at an average price of $23.16, for a total value of $232,001,015.40. Following the completion of the sale, the insider now directly owns 59,732,782 shares in the company, valued at $1,383,411,231.12. The sale was disclosed in a filing with the SEC, which is available at this link. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Several large investors have recently bought and sold shares of the company. Ecofi Investissements SA bought a new stake in shares of Allegro MicroSystems during the second quarter worth about $2,349,000. Creative Planning boosted its position in Allegro MicroSystems by 25.6% during the 2nd quarter. Creative Planning now owns 17,349 shares of the company’s stock worth $490,000 after buying an additional 3,540 shares during the period. Algert Global LLC grew its holdings in Allegro MicroSystems by 26.8% during the 2nd quarter. Algert Global LLC now owns 25,744 shares of the company’s stock worth $727,000 after acquiring an additional 5,444 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in Allegro MicroSystems by 15.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,148,478 shares of the company’s stock valued at $60,673,000 after acquiring an additional 285,747 shares during the period. Finally, Dark Forest Capital Management LP bought a new position in shares of Allegro MicroSystems during the second quarter valued at $363,000. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems Price Performance

ALGM stock opened at $23.79 on Friday. The stock has a market cap of $4.61 billion, a price-to-earnings ratio of 30.50 and a beta of 1.68. The company has a debt-to-equity ratio of 0.18, a current ratio of 4.65 and a quick ratio of 2.98. The company has a 50 day simple moving average of $24.68 and a 200 day simple moving average of $27.28. Allegro MicroSystems has a 1 year low of $20.42 and a 1 year high of $33.42.

Allegro MicroSystems (NASDAQ:ALGM) last announced its quarterly earnings results on Thursday, August 1st. The company reported $0.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.01. Allegro MicroSystems had a net margin of 7.91% and a return on equity of 13.88%. The company had revenue of $166.90 million during the quarter, compared to the consensus estimate of $165.04 million. During the same period in the prior year, the business earned $0.34 earnings per share. The company’s revenue for the quarter was down 40.0% compared to the same quarter last year. Research analysts anticipate that Allegro MicroSystems will post 0.16 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts recently commented on ALGM shares. TD Cowen boosted their price target on Allegro MicroSystems from $32.00 to $35.00 and gave the company a “buy” rating in a research note on Thursday, June 13th. UBS Group started coverage on shares of Allegro MicroSystems in a report on Tuesday, September 3rd. They set a “buy” rating and a $33.00 price target for the company. Finally, Needham & Company LLC reissued a “buy” rating and issued a $33.00 price objective on shares of Allegro MicroSystems in a research note on Friday, August 2nd. One analyst has rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $34.44.

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; power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers; and photonic and advanced 3D sensing components.