On September 19, 2023, it was reported that Buckley Wealth Management LLC acquired a new stake in Allegro MicroSystems, Inc. in the second quarter of the year. According to the company’s Form 13F filing with the Securities and Exchange Commission (SEC), Buckley Wealth Management LLC purchased 5,514 shares of Allegro MicroSystems’ stock. The total value of this purchase is estimated to be around $249,000.
Allegro MicroSystems is a prominent company in the semiconductor industry, specializing in integrated circuit products for automotive applications. The company’s technology solutions are widely used in various automotive systems such as electrification, safety, and power management.
In addition to Buckley Wealth Management LLC’s acquisition, there have been noteworthy developments involving key individuals within Allegro MicroSystems as well. Chief Financial Officer Derek D’antilio recently acquired 1,488 shares of the company’s stock in a transaction on September 15th. The average cost per share was reported to be $33.63, resulting in a total transaction worth $50,041.44. As a result of this purchase, D’antilio now directly owns 142,899 shares of Allegro MicroSystems’ stock which are valued at $4,805,693.37.
Meanwhile, Director Joseph R. Martin sold 17,000 shares of Allegro MicroSystems’ stock on August 23rd at an average price of $38.73 per share. This marked a total transaction value of $658,410 and reduced Martin’s holdings to 22,374 shares valued at approximately $866,545.02.
These transactions were duly disclosed through documents filed with the SEC to ensure transparency and compliance with regulatory requirements. Further details regarding these transactions can be accessed through the links provided.
It is also worth noting that approximately 9.70% of Allegro MicroSystems’ stock is owned by company insiders as reported in the disclosure filings.
This recent activity within Allegro MicroSystems demonstrates the ongoing interest and engagement of investors and key stakeholders in the company’s performance. The acquisition made by Buckley Wealth Management LLC indicates confidence in Allegro MicroSystems’ future prospects and potential growth opportunities. Likewise, the transactions involving the CFO and Director reflect their individual involvement and belief in the company’s long-term success.
As Allegro MicroSystems continues to innovate and deliver cutting-edge solutions within the semiconductor industry, these recent developments contribute to shaping its overall trajectory and further establish its position as a key player in the market.
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Unusual Holdings Shifts and Positive Analyst Sentiment Puzzles Market Observers Regarding Allegro MicroSystems’ Stock Price Performance
In a surprising turn of events, numerous institutional investors have made significant changes to their holdings of Allegro MicroSystems (ALGM). One such investor, Raymond James & Associates, has increased its stake in the company by 6.3% during the first quarter of this year. The addition of an extra 2,550 shares brings Raymond James & Associates’ total ownership to 43,038 shares. This move is quite perplexing considering the current state of the market.
Another institutional investor, US Bancorp DE, witnessed a staggering increase in its holdings of Allegro MicroSystems during the same period. Its holdings rose by a remarkable 981.5%, with an additional 2,228 shares worth $70,000 added to its portfolio. PNC Financial Services Group Inc., on the other hand, experienced a more modest increase of 201.6% in its shares during the first quarter. The company now owns 1,158 shares valued at $33,000.
AlphaCrest Capital Management LLC entered the picture with a new position in Allegro MicroSystems worth $317,000 acquired during the first quarter. Finally, MetLife Investment Management LLC also purchased a new position in Allegro MicroSystems valued at $74,000 in the same period. It is astounding to see such significant movements from various institutional investors and hedge funds who now collectively own approximately 50.63% of ALGM’s stock.
A number of research analysts have taken note of these developments and have shared their insights on ALGM’s prospects moving forward. Wells Fargo & Company revised their price objective for Allegro MicroSystems from $52.00 to $60.00 in a report submitted on July 26th. Additionally, Barclays upped their price target from $50.00 to $60.00 on July 20th.
Adding to these sentiments is Wolfe Research’s recent coverage initiation where they provided a “market perform” rating for Allegro MicroSystems. Needham & Company LLC reaffirmed their “buy” rating with a price target of $50.00 in a research report on August 9th. Mizuho also raised their price objective from $50.00 to $56.00 on July 20th.
It is interesting to note that despite these recent changes in holdings and the positive commentary from analysts, ALGM stock opened at only $33.20 on September 19th. This is considerably lower than its one-year high of $53.05, which suggests some form of disconnect within the market.
Allegro MicroSystems has shown resilience despite the perplexing developments surrounding its stock price. The company currently holds a debt-to-equity ratio of 0.02 and boasts a quick ratio of 3.43 along with a current ratio of 4.56, indicating that it remains well-positioned financially.
The company’s performance during the second quarter was impressive, with an earnings per share (EPS) of $0.34 compared to the consensus estimate of $0.32, beating expectations by $0.02 per share according to their August 1st financial report.
Allegro MicroSystems had revenue amounting to $278.29 million for the quarter, surpassing analysts’ predictions that pegged it at around $275 million.
Moving forward, analysts forecast that Allegro MicroSystems will achieve an EPS of approximately 1.25 for this year as a whole.
In conclusion, Allegro MicroSystems has experienced significant shifts in holdings by institutional investors and hedge funds, leaving market observers puzzled by the divergence between these movements and the company’s stock price performance opening at only $33.20 on September 19th.
Despite this disconnect and the cautious sentiment surrounding ALGM, analysts remain relatively optimistic about its prospects with buy ratings and increased price objectives being assigned to the company by research analysts. Allegro MicroSystems’ financials also indicate a strong position within the market, which further supports these positive viewpoints.
Only time will tell how Allegro MicroSystems will fare amidst this flurry of developments and if the faith shown by institutional investors and analysts will translate into significant gains for the company in the future.
