MANCHESTER, N.H.—In recent transactions disclosed by Allegro (WA:ALEP) Microsystems, Inc. (NASDAQ:ALGM), Senior Vice President and Chief Technology Officer Michael Doogue made significant moves in the company's stock. According to the latest SEC filing, Doogue purchased 15,000 shares of Allegro Microsystems' common stock on November 18, at a price of $19 per share, amounting to a total transaction value of $285,000.
The acquisition was made indirectly through the Michael C. Doogue Revocable Trust of 2015, increasing the trust's holdings to 246,086 shares. This purchase highlights Doogue's continued investment in Allegro Microsystems, a company specializing in semiconductors and related devices.
Additionally, Doogue disposed of 2,319 shares, valued at $19.24 each, to cover taxes due upon the vesting of restricted stock units. This transaction, amounting to $44,617, was noted as a direct ownership change, leaving him with 62,404 shares in direct possession.
These transactions reflect Doogue's strategic financial decisions and ongoing involvement with Allegro Microsystems, reinforcing his commitment to the company's growth and future prospects.
In other recent news, Allegro MicroSystems reported a mixed financial performance for the second quarter. The semiconductor company saw Q2 sales of $187 million, marking a 12% increase from the previous quarter but a 32% decrease year-over-year. Non-GAAP earnings per share (EPS) were $0.08. Looking forward, Allegro projects Q3 sales to range between $170 million and $180 million, with a gross margin of 49%-51%.
Loop Capital initiated coverage on Allegro MicroSystems with a Buy rating and a price target of $30.00, highlighting the company's significant exposure to the automotive sector and alignment with rapidly expanding automotive trends. The firm sees potential for Allegro to thrive amidst the evolving dynamics of the global semiconductor industry.
On the other hand, Morgan Stanley (NYSE:MS) initiated coverage on Allegro with an Equal-weight rating and a price target of $21.00, reflecting a neutral stance considering potential headwinds in the automotive semiconductor market. The firm's analysis suggests a cautious outlook for the sector, which could impact Allegro's revenue expansion.
In other company news, Allegro achieved significant design wins across the automotive and medical sectors, with strong demand from Chinese automotive OEMs. The company also made a voluntary debt payment, reducing the term loan balance to $375 million. As part of recent developments, Allegro is expected to attend several conferences to discuss its technology and market position.
InvestingPro Insights
Michael Doogue's recent purchase of Allegro Microsystems (NASDAQ:ALGM) shares aligns with several key insights from InvestingPro. The company's stock is currently trading near its 52-week low, with a significant price drop of 24.25% over the last three months. This context makes Doogue's investment particularly noteworthy, as it may signal confidence in the company's long-term prospects despite recent market challenges.
According to InvestingPro Tips, management has been aggressively buying back shares, which, combined with Doogue's purchase, could indicate a belief that the stock is undervalued. This perspective is further supported by the fact that ALGM is trading at $19.24, while the fair value based on analyst targets is $29.50.
However, investors should note that ALGM's revenue growth has been negative, with a 20.72% decline in the last twelve months. The company's profitability is also a concern, as it has not been profitable over the same period. Despite these challenges, analysts predict that the company will be profitable this year, suggesting potential for a turnaround.
For those considering an investment in ALGM, it's worth noting that InvestingPro offers 14 additional tips for this stock, providing a more comprehensive analysis for informed decision-making.
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