As of Friday close, Allegro MicroSystems Inc.’s (NASDAQ:ALGM) stock was up $0.16, moving up 0.50 percent to $31.90. The average number of shares traded per day over the past five days has been 1,036,560 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.89 fall in that time frame. In the last twenty days, the average volume was 1,340,755, while in the previous 50 days, it was 1,471,548.
Since last month, ALGM stock retreated -18.91%. Shares of the company fell to $31.45 on 09/22/23, the lowest level in the past month. A 52-week high of $53.05 was reached on 07/19/23 after having rallying from a 52-week low of $19.80. Since the beginning of this year, ALGM’s stock price has risen by 6.26% or $1.88, and marked a new high 27 times. However, the stock has declined by -39.87% since its 52-week high.
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ALGM stock investors should be aware that Allegro MicroSystems Inc. (ALGM) stock had its last reported insider trading activity 8 days ago on Sep 15. D’Antilio Derek, the SVP, CFO & Treasurer of the company, purchased of 1,488 shares for $33.63 on Sep 15. It resulted in a $50,041 investment by the insider. MARTIN JOSEPH R sold 17,000 shares at an average price of $38.73 on Aug 23. The insider now owns 22,374 shares following the transaction. On Aug 16, President and CEO Nargolwala Vineet A bought 5,000 shares at $38.67 apiece. The transaction was valued at $193,350.
Valuation Metrics
Right now, Allegro MicroSystems Inc. (ALGM) has a P/E ratio of about 26.04. The stock’s beta is 1.85. Besides these, the trailing price-to-sales (P/S) ratio of 6.12, the price-to-book (PB) ratio of 5.96, and the price-to-cash flow ratio of 65.91 may also be considered.
Financial Health
In the three months ended June 29, Allegro MicroSystems Inc.’s quick ratio stood at 3.40, while its current ratio was 4.60, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.02, and the total debt-to-equity ratio was 0.02. On the profitability front, the trailing twelve-month gross margin is 56.60% percent. In the year ended June 29, EBITDA margin amounted to 25.81%, whereas operating margins totaled 25.10%. Based on annual data, ALGM earned $546.08 million in gross profit and brought in $973.65 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 18.10%. Return on equity (ROE) for the past 12 months was 25.70%.
In Allegro MicroSystems Inc.’s quarter-end financial report for June 29, it reported total debt of $25.0 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ALGM’s revenue rose 21.66% to $233.36 million during the quarter, while net income inched up to $277.95 million. While analysts expected Allegro MicroSystems Inc. to report $0.37 quarterly earnings, the actual figure was $0.39 per share, beating the consensus estimate by 5.40%. During the quarter, the company generated $85.05 million in EBITDA. The liabilities of Allegro MicroSystems Inc. were 206.32 million at the end of its most recent quarter ended June 29, and its total debt was $46.39 million. The value of shareholders’ equity is $192.38 million.
Technical Picture
This quick technical analysis looks at Allegro MicroSystems Inc.’s (ALGM) price momentum. With a historical volatility rate of 19.48%, the RSI 9-day stood at 18.63% on 22 September.
With respect to its five-day moving average, the current Allegro MicroSystems Inc. price is down by -2.71% percent or -$0.89. At present, ALGM shares trade -15.29% below its 20-day simple moving average and -13.06% percent below its 100-day simple moving average. However, the stock is currently trading approximately -38.09% below its SMA50 and -1.97% below its SMA200.
Stochastic coefficient K was 4.00% and Stochastic coefficient D was 6.66%, while ATR was 1.06. Given the Stochastic reading of 6.68% for the 14-day period, the RSI (14) reading has been calculated as 23.40%. As of today, the MACD Oscillator reading stands at -0.94, while the 14-day reading stands at -1.86.
Analyst Ratings
Wolfe Research launched its rating on Allegro MicroSystems Inc. (NASDAQ: ALGM) to a Peer perform in a note to investors on July 20, 2023. Allegro MicroSystems Inc. (ALGM) has been rated Buy by analysts. According to 0 brokerage firms, ALGM is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Allegro MicroSystems Inc. stock as buy, with 5 recommending it as overweight.
With a median target price of $55.00, the current consensus forecast for the stock is $50.00 – $60.00. Based on these forecasts, analysts predict Allegro MicroSystems Inc. (ALGM) will achieve an average price target of $55.33.
