As the economic environment continues to shift and evolve at an unfathomable pace, companies are becoming increasingly agile in their investment strategies. Thrivent Financial for Lutherans has recently added a new stake to its portfolio by investing in Allegro MicroSystems, Inc. with the purchase of 17,325 shares worth approximately $520,000 during the 4th quarter. This move has piqued the curiosity of both seasoned investors and those who are just dipping their toes into this domain.
Allegro MicroSystems (NASDAQ:ALGM) has been in the news since it reported earnings results on May 10th. It beat estimates with an EPS of $0.33 for the quarter against a consensus estimate of $0.32, leaving investors eagerly waiting for upcoming performance indications. The company boasts a net margin of 19.83% and a return on equity of 22.37%, making it an attractive prospect for investors looking to invest their capital amid market volatility.
During the previous quarter, analysts had expected Allegro MicroSystems’ revenue to reach $265 million; however, the company fell short of expectations with total revenue pegged at $240.53 million. Nonetheless, it still shows promise with a one-year expected earnings per share figure hovering around 1.22.
With this recent investment by Thrivent Financial for Lutherans in Allegro MicroSystems (NASDAQ:ALGM), other hedge funds may be motivated to follow suit and explore additional options in expanding their portfolios as well as tracking insider trades for potential insights into future moves made by these companies.
For current holdings and other updates on Allegro MicroSystems (NASDAQ:ALGM), visit HoldingsChannel.com – your one stop shop for all your financial insights needs!
Institutional Investors Take Notice of Allegro MicroSystems’ Potential Growth Opportunities
Allegro MicroSystems, Inc. (NASDAQ:ALGM) has attracted the attention of several institutional investors and hedge funds who have either increased or decreased their stakes in the company. Wellington Management Group LLP purchased a new position worth $39.4 million in Allegro MicroSystems during the first quarter of 2023, while Clearbridge Investments LLC grew its position by 18.6% to $114.5 million. Millennium Management LLC also raised its stake by 4113.2%, BlackRock Inc. boosted its stake by 25.4%, and Sei Investments Co.’s holdings grew by 253.9%. In total, institutional investors now own almost half (46.89%) of the company’s stock.
Allegro MicroSystems opened at $37.61 on May 26th, with a market cap of $7.20 billion and a price-to-earnings ratio of 39.18, as well as a beta of 1.69, indicating high volatility levels compared to the market average index performance.
Analysts have given various ratings and price targets for Allegro MicroSystems, including Cowen rating it “outperform” with a price target of $44.00 back in February which was later increased to $52 by Wells Fargo & Company on March 9th.
The products offered by Allegro MicroSystems are sensors integrated circuits (ICs) and application-specific analog power ICs that have diverse functionalities such as motion control for energy systems along with other features like power ICs for drivers’ needs or photonic/3D sensing components that find many applications in LIDAR technology such as those used in self-driving cars.
Those interested can stay up-to-date on data from HoldingsChannel.com providing essential investment information including insider trades and the latest Fillings for ALGM.
As more players venture into this space we may see an increase in product diversification which will force companies to stay competitive and employ strategic plans to adapt – something investors will surely keep a watchful eye on. Nonetheless, Allegro’s conceptional design and integrated sensor technology offer an excellent opportunity for growth in the future of motion control sensors.
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