Allegro MicroSystems Inc. (NASDAQ:ALGM) finished Thursday with a subtraction of -$0.56 to close at $37.10, a downside of -1.49 percent. An average of 805,339 shares of common stock have been traded in the last five days. There was a fall of -$0.66 in the past week, and it reached a new high 35 times over the past 12 months. The last 20 days have seen an average of 1,510,275 shares traded, while the 50-day average volume stands at 1,521,532.
ALGM stock has decreased by -24.75% in the last month. The company shares reached their 1-month lowest point of $36.52 on 08/25/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $19.80 and a high of $53.05 in 52 weeks. It has reached a new high 27 times so far this year and achieved 23.58% or $6.93 in price. In spite of this, the price is down -30.07% from the 52-week high.
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Insider Transactions
ALGM stock investors should be aware that Allegro MicroSystems Inc. (ALGM) stock had its last reported insider trading activity 2 days ago on Aug 23. In this transaction, the insider spent $658,376. Director, Lury Richard R., disposed of 6,000 shares at a price of $42.58 on Feb 08. The insider now owns more than $255,480 worth of shares. Prior to that, 10% Owner OEP SKNA, L.P. went on to Sale 4,980,000 shares at $37.76 each on Feb 02. An amount of $188,044,800 was transacted.
Valuation Metrics
Allegro MicroSystems Inc. (ALGM) has a trailing price-to-earnings (P/E) ratio of 30.29. The stock’s beta is 1.84. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.86, the price-to-book (PB) ratio at 6.93, and the price-to-cash flow ratio at 73.91.
Financial Health
The quick ratio of Allegro MicroSystems Inc. for the three months ended June 29 was 3.40, and the current ratio was 4.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.02 and a total debt to equity ratio of 0.02 for the quarter ending June 29. Allegro MicroSystems Inc.’s EBITDA margin for the year ending June 29 is 25.81%, while its operating margin for the same period stands at 25.10%. Its gross profit as reported stood at $546.08 million compared to revenue of $973.65 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Allegro MicroSystems Inc.’s return on assets was 21.30%.
Earnings Surprise
For the three-month period that ended June 29, Allegro MicroSystems Inc. had $25.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $60.85 million in the quarter, while revenues of $61.98 million were grew 83.16%. The analyst consensus anticipated Allegro MicroSystems Inc.’s latest quarter earnings to come in at $0.37 per share, but it turned out to be $0.39, a 5.40% surprise. For the quarter, EBITDA amounted to $85.05 million. Shareholders own equity worth $192.38 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Allegro MicroSystems Inc. (ALGM) price momentum. RSI 9-day as of the close on 24 August was 29.00%, suggesting the stock is oversold, with historical volatility in this time frame at 33.93%.
As of today, ALGM’s price is $38.25 -1.75% or -$0.66 from its 5-day moving average. ALGM is currently trading -27.32% lower than its 20-day SMA and -22.80% lower than its 100-day SMA. However, the stock’s current price level is -9.08% below the SMA50 and +40.87% above the SMA200.
The stochastic %K and %D were 18.61% and 23.15%, respectively, and the average true range (ATR) was 1.52. With the 14-day stochastic at 8.33% and the average true range at 1.58, the RSI (14) stands at 32.78%. The stock has reached -0.16 on the 9-day MACD Oscillator while the 14-day reading was at -0.92.
Analyst Ratings
Wolfe Research launched coverage on Allegro MicroSystems Inc. (NASDAQ: ALGM) in its analyst report released on July 20, 2023. The firm assigned the stock a Peer perform rating. The consensus rating for Allegro MicroSystems Inc. (ALGM) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ALGM, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 5 others rate it as a “buy”.
What is ALGM’s price target for the next 12 months?
Analysts predict a range of price targets between $50.00 and $60.00, with a median target of $55.00. Taking a look at these predictions, the average price target given by analysts for Allegro MicroSystems Inc. (ALGM) stock is $55.33.
