Is Allegro Microsystems Stock a Good Investment?
Allegro Microsystems Investment Advice | ALGM |
- Examine Allegro Microsystems' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Allegro Microsystems' leadership team and their track record. Good management can help Allegro Microsystems navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Allegro Microsystems' business and its evolving consumer preferences.
- Compare Allegro Microsystems' performance and market position to its competitors. Analyze how Allegro Microsystems is positioned in terms of product offerings, innovation, and market share.
- Check if Allegro Microsystems pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Allegro Microsystems' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Allegro Microsystems stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Allegro Microsystems is a good investment.
Sell | Buy |
Sell
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Allegro Microsystems Stock
Researching Allegro Microsystems' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 33.0% of the company shares are held by company insiders. The book value of Allegro Microsystems was presently reported as 5.1. The company has Price/Earnings To Growth (PEG) ratio of 1.64. Allegro Microsystems recorded a loss per share of 0.14. The entity had not issued any dividends in recent years.
To determine if Allegro Microsystems is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Allegro Microsystems' research are outlined below:
| Allegro Microsystems generated a negative expected return over the last 90 days | |
| Allegro Microsystems has high historical volatility and very poor performance | |
| Over 78.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Allegro MicroSystems Wins Embedded Computing Designs Electronic |
Allegro Microsystems Quarterly Cost Of Revenue |
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Allegro Microsystems uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Allegro Microsystems. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Allegro Microsystems' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of February 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Allegro Microsystems' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Allegro Microsystems' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-08-01 | 2024-06-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2024-10-31 | 2024-09-30 | 0.06 | 0.08 | 0.02 | 33 | ||
2021-10-28 | 2021-09-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2021-07-29 | 2021-06-30 | 0.16 | 0.18 | 0.02 | 12 | ||
2024-02-01 | 2023-12-31 | 0.29 | 0.32 | 0.03 | 10 | ||
2024-05-09 | 2024-03-31 | 0.21 | 0.25 | 0.04 | 19 | ||
2022-10-27 | 2022-09-30 | 0.26 | 0.31 | 0.05 | 19 | ||
2020-11-20 | 2020-09-30 | 0.1012 | 0.3 | 0.1988 | 196 |
Know Allegro Microsystems' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Allegro Microsystems is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Allegro Microsystems backward and forwards among themselves. Allegro Microsystems' institutional investor refers to the entity that pools money to purchase Allegro Microsystems' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Manufacturers Life Insurance Co | 2024-09-30 | 2.2 M | Ameriprise Financial Inc | 2024-06-30 | 2.1 M | Westfield Capital Management Company, Lp | 2024-09-30 | 2 M | Artisan Partners Limited Partnership | 2024-06-30 | 1.6 M | T. Rowe Price Investment Management,inc. | 2024-09-30 | 1.6 M | Adage Capital Partners Gp Llc | 2024-06-30 | 1.5 M | Massachusetts Financial Services Company | 2024-09-30 | 1.5 M | Woodline Partners Lp | 2024-06-30 | 1.4 M | Geode Capital Management, Llc | 2024-06-30 | 1.4 M | Fmr Inc | 2024-09-30 | 28.3 M | Vanguard Group Inc | 2024-09-30 | 14.7 M |
Allegro Microsystems' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.71 B.Market Cap |
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Allegro Microsystems' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.17 | |
| Return On Capital Employed | 0.15 | 0.20 | |
| Return On Assets | 0.10 | 0.16 | |
| Return On Equity | 0.14 | 0.19 |
Determining Allegro Microsystems' profitability involves analyzing its financial statements and using various financial metrics to determine if Allegro Microsystems is a good buy. For example, gross profit margin measures Allegro Microsystems' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Allegro Microsystems' profitability and make more informed investment decisions.
Allegro Microsystems' Earnings Breakdown by Geography
Evaluate Allegro Microsystems' management efficiency
Allegro Microsystems has return on total asset (ROA) of 0.0304 % which means that it generated a profit of $0.0304 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0244) %, meaning that it created substantial loss on money invested by shareholders. Allegro Microsystems' management efficiency ratios could be used to measure how well Allegro Microsystems manages its routine affairs as well as how well it operates its assets and liabilities. As of the 22nd of November 2024, Return On Tangible Assets is likely to grow to 0.17. Also, Return On Capital Employed is likely to grow to 0.20. At this time, Allegro Microsystems' Asset Turnover is very stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 5.88 | 5.06 | |
| Tangible Book Value Per Share | 3.39 | 4.64 | |
| Enterprise Value Over EBITDA | 18.97 | 33.52 | |
| Price Book Value Ratio | 4.59 | 9.50 | |
| Enterprise Value Multiple | 18.97 | 33.52 | |
| Price Fair Value | 4.59 | 9.50 | |
| Enterprise Value | 5.3 B | 8.9 B |
At Allegro Microsystems, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Beta 1.688 |
Basic technical analysis of Allegro Stock
As of the 22nd of November, Allegro Microsystems shows the Risk Adjusted Performance of (0.06), standard deviation of 3.21, and Mean Deviation of 2.63. Allegro Microsystems technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Allegro Microsystems standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and kurtosis to decide if Allegro Microsystems is priced correctly, providing market reflects its regular price of 20.75 per share. Given that Allegro Microsystems has information ratio of (0.12), we suggest you to validate Allegro Microsystems's prevailing market performance to make sure the company can sustain itself at a future point.Allegro Microsystems' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Allegro Microsystems insiders, such as employees or executives, is commonly permitted as long as it does not rely on Allegro Microsystems' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Allegro Microsystems insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Allegro Microsystems' Outstanding Corporate Bonds
Allegro Microsystems issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Allegro Microsystems uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Allegro bonds can be classified according to their maturity, which is the date when Allegro Microsystems has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ALLE 5411 01 JUL 32 Corp BondUS01748TAC53 | View | |
| Allegion 35 percent Corp BondUS01748TAB70 | View | |
| ALGT 725 15 AUG 27 Corp BondUS01748XAD49 | View | |
| US01741RAL69 Corp BondUS01741RAL69 | View | |
| US01741RAM43 Corp BondUS01741RAM43 | View | |
| Allegheny Technologies 5875 Corp BondUS01741RAH57 | View | |
| ALLEGION HLDG INC Corp BondUS01748NAE40 | View |
Understand Allegro Microsystems' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Allegro Microsystems' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 2.63 | |||
| Coefficient Of Variation | (1,150) | |||
| Standard Deviation | 3.21 | |||
| Variance | 10.3 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.49) | |||
| Total Risk Alpha | (0.65) | |||
| Treynor Ratio | (0.12) | |||
| Maximum Drawdown | 13.48 | |||
| Value At Risk | (5.46) | |||
| Potential Upside | 5.36 | |||
| Skewness | 0.0535 | |||
| Kurtosis | (0.41) |
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 2.63 | |||
| Coefficient Of Variation | (1,150) | |||
| Standard Deviation | 3.21 | |||
| Variance | 10.3 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.49) | |||
| Total Risk Alpha | (0.65) | |||
| Treynor Ratio | (0.12) | |||
| Maximum Drawdown | 13.48 | |||
| Value At Risk | (5.46) | |||
| Potential Upside | 5.36 | |||
| Skewness | 0.0535 | |||
| Kurtosis | (0.41) |
Consider Allegro Microsystems' intraday indicators
Allegro Microsystems intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Allegro Microsystems stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Allegro Microsystems Corporate Filings
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 8th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
10Q | 1st of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Allegro Stock media impact
Far too much social signal, news, headlines, and media speculation about Allegro Microsystems that are available to investors today. That information is available publicly through Allegro media outlets and privately through word of mouth or via Allegro internal channels. However, regardless of the origin, that massive amount of Allegro data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Allegro Microsystems news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Allegro Microsystems relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Allegro Microsystems' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Allegro Microsystems alpha.
Allegro Microsystems Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Allegro Microsystems can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Allegro Microsystems Historical Investor Sentiment
Investor biases related to Allegro Microsystems' public news can be used to forecast risks associated with an investment in Allegro. The trend in average sentiment can be used to explain how an investor holding Allegro can time the market purely based on public headlines and social activities around Allegro Microsystems. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Allegro Microsystems' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Allegro Microsystems and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Allegro Microsystems news discussions. The higher the estimate score, the more favorable the investor's outlook on Allegro Microsystems.
Allegro Microsystems Corporate Management
| Roald Webster | VP Officer | Profile | |
| Erin Hagen | Senior Officer | Profile | |
| Thomas Teebagy | VP Quality | Profile | |
| Derek DAntilio | CFO VP | Profile | |
| Jalene CPA | Vice Communications | Profile |
Already Invested in Allegro Microsystems?
The danger of trading Allegro Microsystems is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Allegro Microsystems is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Allegro Microsystems. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Allegro Microsystems is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Allegro Microsystems is a strong investment it is important to analyze Allegro Microsystems' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Allegro Microsystems' future performance. For an informed investment choice regarding Allegro Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Allegro Microsystems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. To learn how to invest in Allegro Stock, please use our How to Invest in Allegro Microsystems guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allegro Microsystems. If investors know Allegro will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allegro Microsystems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.48) | Earnings Share (0.14) | Revenue Per Share 4.423 | Quarterly Revenue Growth (0.32) | Return On Assets 0.0304 |
The market value of Allegro Microsystems is measured differently than its book value, which is the value of Allegro that is recorded on the company's balance sheet. Investors also form their own opinion of Allegro Microsystems' value that differs from its market value or its book value, called intrinsic value, which is Allegro Microsystems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allegro Microsystems' market value can be influenced by many factors that don't directly affect Allegro Microsystems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Allegro Microsystems' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Allegro Microsystems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allegro Microsystems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.