Investors Buy High Volume of Allegro MicroSystems Put Options (NASDAQ:ALGM)

Allegro MicroSystems, Inc. (NASDAQ:ALGM) saw unusually large options trading on Tuesday. Traders bought 10,001 put options on the stock. This represents an increase of 318% compared to the average daily volume of 2,390 put options.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Versant Capital Management Inc raised its holdings in Allegro MicroSystems by 1,957.1% in the second quarter. Versant Capital Management Inc now owns 1,152 shares of the company’s stock valued at $33,000 after acquiring an additional 1,096 shares in the last quarter. GAMMA Investing LLC increased its position in shares of Allegro MicroSystems by 52.2% in the 2nd quarter. GAMMA Investing LLC now owns 1,759 shares of the company’s stock valued at $50,000 after purchasing an additional 603 shares during the last quarter. KBC Group NV raised its holdings in shares of Allegro MicroSystems by 40.9% in the 3rd quarter. KBC Group NV now owns 3,590 shares of the company’s stock valued at $84,000 after purchasing an additional 1,042 shares in the last quarter. CWM LLC lifted its position in shares of Allegro MicroSystems by 27.7% during the 2nd quarter. CWM LLC now owns 4,241 shares of the company’s stock worth $120,000 after purchasing an additional 921 shares during the last quarter. Finally, Van ECK Associates Corp acquired a new position in shares of Allegro MicroSystems during the third quarter worth $172,000. Hedge funds and other institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Trading Down 1.5 %

Shares of NASDAQ:ALGM traded down $0.32 during midday trading on Tuesday, reaching $20.54. 185,640 shares of the company’s stock were exchanged, compared to its average volume of 1,925,641. The stock has a market cap of $3.78 billion, a price-to-earnings ratio of -148.70 and a beta of 1.69. Allegro MicroSystems has a fifty-two week low of $19.71 and a fifty-two week high of $33.26. The firm’s 50 day simple moving average is $21.86 and its two-hundred day simple moving average is $25.66. The company has a debt-to-equity ratio of 0.42, a current ratio of 4.22 and a quick ratio of 2.80.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings results on Thursday, October 31st. The company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.06 by $0.02. The business had revenue of $187.39 million during the quarter, compared to the consensus estimate of $187.52 million. Allegro MicroSystems had a negative net margin of 2.96% and a positive return on equity of 8.48%. The company’s quarterly revenue was down 32.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.36 earnings per share.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ALGM. Loop Capital started coverage on Allegro MicroSystems in a research note on Tuesday. They issued a “buy” rating and a $30.00 price objective for the company. Mizuho set a $26.00 price target on shares of Allegro MicroSystems in a research note on Friday, October 18th. Needham & Company LLC lowered their price target on shares of Allegro MicroSystems from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Thursday, October 31st. Morgan Stanley began coverage on shares of Allegro MicroSystems in a report on Thursday, November 7th. They issued an “equal weight” rating and a $21.00 price objective for the company. Finally, Barclays lowered their target price on Allegro MicroSystems from $32.00 to $25.00 and set an “overweight” rating on the stock in a report on Friday, November 1st. One equities research analyst has rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $30.80.

Allegro MicroSystems Company Profile

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.