Where This US Mid Cap Stock Heading-ALGM

Acrobull UK Advisory Services Ltd.

October 16

2024

Name	Ticker	Sector/Industry	Market Cap	Risk Factor
Allegro MicroSystems, Inc.	ALGM-NASDAQ	Semiconductor	$3.673 Billion	Medium

Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position.

Recent Highlights

Stock Purchase by JP Morgan Chase- On September 30, 2024, JPMorgan Chase & Co. made a significant addition to its investment portfolio by acquiring 1,887,465 shares of Allegro Microsystems Inc., a prominent player in the semiconductor industry. This transaction, executed at a price of $23.30 per share, increased JPMorgan's total holdings in the company to 11,026,515 shares, marking a substantial investment move.

The stock is also in an oversold territory which is an indication that it is poised for a turnaround in the coming weeks.

First Quarter 2024 Financial Highlights

The Q1 fiscal 2025 sales of $167 million were reported by Allegro MicroSystems.

Automotive rebalancing is expected to persist into Q2, with inventory levels in the automotive and industrial markets declining.

Due to normalized customer orders, the company anticipates low double-digit sales growth in the second quarter.

Allegro is uplifted by the market expansion for electric vehicles.

There was an introduction of new items, such as sensor solutions and high-voltage power.

Sales for the second quarter are expected to range from $182 million to $192 million, with a 49%–51% gross margin.

Stock Observation- The company stock has gone through turbulent times in recent weeks and is trading at $20.46 USD, the RSI level for the stock is at 39 which shows oversold conditions. The investors looking for a mid to long term stock may choose to invest.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy Rating for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$20.46 USD
Acrobull Recommendation	Buy Mid To Long Term
Target Price	$23.52 USD
RSI Level	14 Day RSI 39
Total Shares Outstanding	183.09 Million
Shares held by Insiders Risk Factor	27.51% Medium