Investors Purchase Large Volume of Put Options on Allegro MicroSystems (NASDAQ:ALGM)

Allegro MicroSystems, Inc. (NASDAQ:ALGM) saw some unusual options trading on Friday. Traders purchased 18,539 put options on the company. This is an increase of approximately 642% compared to the average volume of 2,499 put options.

Allegro MicroSystems Price Performance

Shares of ALGM traded down $0.01 during mid-day trading on Friday, hitting $26.40. The company’s stock had a trading volume of 299,962 shares, compared to its average volume of 1,679,535. The company has a current ratio of 4.57, a quick ratio of 3.19 and a debt-to-equity ratio of 0.22. The firm has a 50-day simple moving average of $28.90 and a 200 day simple moving average of $28.54. The firm has a market capitalization of $5.10 billion, a P/E ratio of 23.17 and a beta of 1.82. Allegro MicroSystems has a 1-year low of $24.66 and a 1-year high of $53.05.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings results on Thursday, February 1st. The company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The business had revenue of $254.98 million during the quarter, compared to analysts’ expectations of $255.00 million. Allegro MicroSystems had a return on equity of 23.84% and a net margin of 21.14%. Analysts predict that Allegro MicroSystems will post 1.13 EPS for the current fiscal year.

Institutional Trading of Allegro MicroSystems

Several hedge funds have recently modified their holdings of the business. GAMMA Investing LLC purchased a new stake in Allegro MicroSystems during the fourth quarter worth $28,000. State of Wyoming purchased a new stake in Allegro MicroSystems during the second quarter worth $28,000. Altshuler Shaham Ltd purchased a new stake in Allegro MicroSystems during the fourth quarter worth $32,000. Harbour Investments Inc. purchased a new stake in Allegro MicroSystems during the first quarter worth $33,000. Finally, PNC Financial Services Group Inc. boosted its position in Allegro MicroSystems by 201.6% during the first quarter. PNC Financial Services Group Inc. now owns 1,158 shares of the company’s stock worth $33,000 after purchasing an additional 774 shares in the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on ALGM. Evercore ISI began coverage on Allegro MicroSystems in a report on Tuesday. They issued an “outperform” rating and a $36.00 price objective on the stock. Needham & Company LLC dropped their price target on Allegro MicroSystems from $44.00 to $40.00 and set a “buy” rating on the stock in a research note on Friday, February 2nd. TD Cowen raised their price target on Allegro MicroSystems from $32.00 to $35.00 and gave the stock an “outperform” rating in a research note on Friday, February 2nd. Finally, Wolfe Research upgraded Allegro MicroSystems from a “peer perform” rating to an “outperform” rating and set a $35.00 price target on the stock in a research note on Friday, February 2nd. One research analyst has rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $44.50.

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.