Allegro Microsystems Inc. (ALGM) Shares Soar Above 1-Year High

Allegro Microsystems Inc. (NASDAQ: ALGM)’s stock price has soared by 0.23 in relation to previous closing price of 25.68. Nevertheless, the company has seen a loss of -1.98% in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-03 that In the closing of the recent trading day, Allegro MicroSystems, Inc. (ALGM) stood at $25.74, denoting a +0.23% change from the preceding trading day.

Is It Worth Investing in Allegro Microsystems Inc. (NASDAQ: ALGM) Right Now?

The price-to-earnings ratio for Allegro Microsystems Inc. (NASDAQ: ALGM) is 22.63x, which is above its average ratio. Moreover, the 36-month beta value for ALGM is 1.82. Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”

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The public float for ALGM is 78.63M and currently, short sellers hold a 10.27% of that float. On April 04, 2024, ALGM’s average trading volume was 1.79M shares.

ALGM’s Market Performance

The stock of Allegro Microsystems Inc. (ALGM) has seen a -1.98% decrease in the past week, with a -17.18% drop in the past month, and a -12.73% fall in the past quarter. The volatility ratio for the week is 2.57%, and the volatility levels for the past 30 days are at 3.24% for ALGM. The simple moving average for the last 20 days is -8.98% for ALGM’s stock, with a simple moving average of -22.41% for the last 200 days.

Analysts’ Opinion of ALGM

Many brokerage firms have already submitted their reports for ALGM stocks, with Wolfe Research repeating the rating for ALGM by listing it as a “Outperform.” The predicted price for ALGM in the upcoming period, according to Wolfe Research is $35 based on the research report published on February 02, 2024 of the current year 2024.

TD Cowen, on the other hand, stated in their research note that they expect to see ALGM reach a price target of $35, previously predicting the price at $32. The rating they have provided for ALGM stocks is “Outperform” according to the report published on February 02nd, 2024.

BofA Securities gave a rating of “Neutral” to ALGM, setting the target price at $36 in the report published on September 29th of the previous year.

ALGM Trading at -11.97% from the 50-Day Moving Average

After a stumble in the market that brought ALGM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -51.48% of loss for the given period.

Volatility was left at 3.24%, however, over the last 30 days, the volatility rate increased by 2.57%, as shares sank -12.51% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.69% lower at present.

During the last 5 trading sessions, ALGM fell by -1.98%, which changed the moving average for the period of 200-days by -36.08% in comparison to the 20-day moving average, which settled at $28.10. In addition, Allegro Microsystems Inc. saw -14.97% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ALGM starting from Glover Max R., who sale 15,000 shares at the price of $31.77 back on Mar 08 ’24. After this action, Glover Max R. now owns 244,625 shares of Allegro Microsystems Inc., valued at $476,486 using the latest closing price.

Nargolwala Vineet A, the President and CEO of Allegro Microsystems Inc., purchase 1,000 shares at $27.84 during a trade that took place back on Nov 17 ’23, which means that Nargolwala Vineet A is holding 302,161 shares at $27,840 based on the most recent closing price.

Stock Fundamentals for ALGM

Current profitability levels for the company are sitting at:

  • 0.23 for the present operating margin
  • 0.56 for the gross margin

The net margin for Allegro Microsystems Inc. stands at 0.21. The total capital return value is set at 0.17. Equity return is now at value 21.88, with 16.74 for asset returns.

Based on Allegro Microsystems Inc. (ALGM), the company’s capital structure generated 0.2 points at debt to capital in total, while cash flow to debt ratio is standing at 0.78. The debt to equity ratio resting at 0.24. The interest coverage ratio of the stock is 52.7.

Currently, EBITDA for the company is 253.24 million with net debt to EBITDA at 0.2. When we switch over and look at the enterprise to sales, we see a ratio of 4.67. The receivables turnover for the company is 9.12for trailing twelve months and the total asset turnover is 0.69. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.57.

Conclusion

To wrap up, the performance of Allegro Microsystems Inc. (ALGM) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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