On June 1, 2023, it was reported that Aviva PLC had significantly decreased its position in shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM), according to the company’s most recent Form 13F filing with the Securities and Exchange Commission (SEC).
The financial services provider sold an impressive total of 36,526 shares throughout Q4, resulting in a reduction of their holdings by 52.7%. At the conclusion of this period, their ownership of the reputable tech company boiled down to only 32,767 shares. Based on current market values at that time, Aviva PLC’s position was valued at approximately $984,000.
This news has left many analysts wondering about Aviva PLC’s investment strategy. Was the decision to sell off such a substantial amount of shares based on concerns around Allegro MicroSystems’ performance? Could the selling be part of a broader trend towards risk aversion?
Allegro MicroSystems specializes in producing high-performance power and sensing solutions that help enable connected cars and autonomous vehicles. The company has proven time and again to be one of the industry’s foremost innovators, boasting cutting-edge products such as its latest magnetic angle sensor ICs for automotive applications.
Despite this strong track record and solid fundamentals, it remains unknown why Aviva PLC chose to reduce its stake in Allegro MicroSystems at this particular time. It could be argued that their decision is grounded in an alternative investment strategy geared towards mitigating potential losses given ongoing economic uncertainties.
Whatever the underlying motivations may be behind this significant shift in holdings from such a well-regarded player in the finance sector like Aviva PLC will undoubtedly leave some expert investors speculate what comes next for industrial-oriented firms like Allegro MiroSystems or others alike. Nevertheless we can assume that whatever direction or decisions the market takes from here on, avid analysts will be paying close attention to determine which investments reveal the most promising potential for growth.
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Institutional Investors and Equities Analysts See Promise in Allegro MicroSystems for Future Growth
Institutional investors and hedge funds have recently taken interest in Allegro MicroSystems, as evidenced by their purchase and sale of company shares. Among these investors are State of New Jersey Common Pension Fund D, Tudor Investment Corp Et Al, Nuveen Asset Management LLC, CWM LLC, and Renaissance Capital LLC. These institutions have acquired stakes ranging from a few hundred to several thousand shares.
It is interesting to note that hedge funds and institutional investors now own 46.89% of the company’s stock. This suggests that large financial players view Allegro MicroSystems as a valuable investment opportunity.
Equities analysts have also weighed in on the company’s prospects. Five analysts have given Allegro MicroSystems a “buy” rating, with an average target price of $48.33 per share. This indicates confidence in the company’s future growth potential.
Barclays upped its price objective on Allegro MicroSystems from $44 to $50 per share in March 2023 and gave the stock an “overweight” rating. Wells Fargo & Company also increased their price target from $43 to $52 per share in March 2023. Cowen upgraded the stock from a price objective of $38 to $44 per share in February 2023 and rated it as an “outperformer,” while Mizuho upped their price target from $48 to $50 per share in May 2023.
Despite TheStreet lowering its rating on Allegro MicroSystems from a “b-” to a “c+” in May 2023, the overall sentiment among equities analysts is positive, as reflected by their high ratings and optimistic outlook for the company’s future performance.
Overall, institutional investors and equities analysts seem bullish on Allegro MicroSystems and its potential for future growth. As such, it may be worth considering investing in this promising technology firm.
