Exploring Allegro MicroSystems, Inc. (ALGM) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind Allegro MicroSystems (ALGM) and what their investment strategies might be? With institutional ownership at 77.23% and insiders holding 45.52% of the company, understanding the investor profile can provide valuable insights into the company's stability and future direction. But with the stock trading at $19.18 per share as of April 2025, a 42.1% decrease from its 52-week high in July 2024, what does this mean for current and potential investors? Let's delve into who's buying, who's selling, and the reasons behind their investment decisions.

Allegro MicroSystems, Inc. (ALGM) Who Invests in [Company Name] and Why?

Understanding the investor profile of Allegro MicroSystems, Inc. (ALGM) involves examining the various types of investors, their motivations, and the strategies they employ. This insight is crucial for current and prospective shareholders looking to align their investment approach with the broader market sentiment surrounding ALGM.

Key Investor Types:

The investor base of Allegro MicroSystems, Inc. (ALGM) is diverse, encompassing retail investors, institutional investors, and hedge funds. Each group brings different investment horizons, risk tolerances, and objectives.

• Retail Investors: These individual investors often have smaller stakes and may be influenced by factors like personal investment goals or advice from financial advisors.
• Institutional Investors: These include mutual funds, pension funds, insurance companies, and other large entities that manage investments on behalf of others. They typically hold significant positions and conduct extensive research before investing.
• Hedge Funds: These are investment partnerships that use more aggressive strategies, such as leveraging or short-selling, to generate higher returns. Their investment horizons can vary from short-term to long-term.

Investment Motivations:

Several factors attract investors to Allegro MicroSystems, Inc. (ALGM). These motivations often revolve around the company's growth prospects, its position in the market, and broader industry trends.

• Growth Prospects: Investors are drawn to ALGM's potential for revenue and earnings growth, driven by increasing demand for its products in automotive and industrial markets.
• Market Position: ALGM's established presence and competitive advantages in its niche markets make it an attractive investment.

Investment Strategies:

Investors in Allegro MicroSystems, Inc. (ALGM) adopt various strategies depending on their investment goals and risk appetite.

• Long-Term Holding: Some investors, particularly institutional ones, may adopt a long-term holding strategy, banking on the company's sustained growth and stability over time.
• Short-Term Trading: Hedge funds and some retail investors may engage in short-term trading, seeking to profit from price fluctuations and market volatility.
• Value Investing: Some investors may view ALGM as undervalued based on its fundamentals and future prospects, leading them to invest with the expectation of long-term gains.

Analyzing the ownership structure and investor behavior can provide valuable insights into market sentiment and potential stock performance. Understanding who invests in ALGM and why can help inform your investment decisions.

To gain more insights into Allegro MicroSystems, Inc. (ALGM), explore its history, mission, ownership, and operational details: Allegro MicroSystems, Inc. (ALGM): History, Ownership, Mission, How It Works & Makes Money

Allegro MicroSystems, Inc. (ALGM) Institutional Ownership and Major Shareholders of Allegro MicroSystems, Inc. (ALGM)

Institutional ownership in Allegro MicroSystems, Inc. (ALGM) reflects the extent to which large financial entities like mutual funds, pension funds, and hedge funds hold the company's shares. Analyzing this ownership can provide insights into market sentiment and potential stock price movements.

Here's what you need to know about Allegro MicroSystems, Inc. (ALGM)'s institutional investors and their impact:

Top Institutional Investors

As of the latest data available, the top institutional investors in Allegro MicroSystems, Inc. (ALGM) include:

• Vanguard Group Inc.
• BlackRock Fund Advisors
• Capital World Investors
• T. Rowe Price Associates Inc.
• State Street Global Advisors

These firms hold significant portions of Allegro MicroSystems, Inc. (ALGM)'s outstanding shares, reflecting their confidence in the company's prospects.

Changes in Ownership

Recent changes in institutional ownership can indicate shifts in investor sentiment. For example:

• Increases in holdings by major institutions may signal a positive outlook on Allegro MicroSystems, Inc. (ALGM)'s future performance.
• Decreases in holdings could suggest concerns about the company's prospects or a reallocation of investment strategies.

Monitoring these changes over time provides valuable context for understanding market dynamics.

Impact of Institutional Investors

The presence of large institutional investors can significantly influence Allegro MicroSystems, Inc. (ALGM)'s stock price and overall strategy:

• Stock Price Stability: Large institutional holdings can reduce volatility due to the tendency of these investors to hold positions for the long term.
• Corporate Governance: Institutional investors often engage with company management on issues related to corporate governance and strategy, potentially influencing the direction of the company.
• Market Perception: The investment decisions of these major players can shape market perception, attracting or deterring other investors.

For additional details on Allegro MicroSystems, Inc. (ALGM)'s background, mission, and ownership structure, you can explore Allegro MicroSystems, Inc. (ALGM): History, Ownership, Mission, How It Works & Makes Money.

Understanding the profile and activities of Allegro MicroSystems, Inc. (ALGM)'s institutional investors is crucial for anyone looking to make informed decisions about the company. Keeping an eye on who's buying and why can provide a competitive edge in the market.

Allegro MicroSystems, Inc. (ALGM) Key Investors and Their Impact on Allegro MicroSystems, Inc. (ALGM)

Understanding the investor profile of Allegro MicroSystems, Inc. (ALGM) provides valuable insights into the company's stability, growth potential, and strategic direction. Institutional investors, insiders, and significant shareholders can influence company decisions and stock performance. Here’s a detailed look at ALGM’s key investors and their potential impact:

Ownership Structure:

As of April 2025, Allegro MicroSystems, Inc. (ALGM) has a diverse ownership structure comprising:

• Institutional Shareholders: 77.23%
• Insiders: 45.52%
• Retail Investors: 0.00%

This indicates a strong institutional presence, which can provide stability and influence strategic decisions. A significant portion is also held by insiders, aligning management’s interests with those of the shareholders.

Notable Investors:

The largest shareholders include both institutions and insiders. Key players are:

• Sanken Electric Co., Ltd.: Holding 59,732,782 shares, representing 32.44% of the company, valued at approximately $1.08 billion.
• FMR LLC: Owning 22,774,491 shares, which accounts for 12.37% of ALGM.
• OEP SKNA LP: With 17,649,247 shares, holding 9.59% of the company.
• Vanguard Group Inc: Holding 14,082,947 shares, representing 7.65% ownership.
• BlackRock, Inc.: With 11,757,608 shares, owning 6.39% of the company.
• JPMorgan Chase & Co: Holding 10,531,507 shares, representing 5.72% ownership.
• State Street Corp: With 5,877,482 shares, owning 3.19% of the company.
• Capital Research Global Investors: Holding 5,768,208 shares, representing 3.13% of ownership.
• Wellington Management Group LLP: With 3,993,682 shares, owning 2.17% of the company.
• Clearbridge Investments LLC: Holding 3,384,997 shares, representing 1.84% of the company.

Investor Influence:

Major shareholders like Sanken Electric, FMR LLC, and Vanguard Group have substantial influence on Allegro MicroSystems, Inc. (ALGM). Their influence can manifest in several ways:

• Strategic Decisions: Large stakeholders can influence major decisions such as mergers, acquisitions, and significant capital investments.
• Governance: They can impact the composition of the board of directors and influence corporate governance policies.
• Stock Movements: Significant buying or selling activity by these investors can lead to considerable stock price fluctuations.

Recent Moves:

Recent activity involving major shareholders includes:

• Share Repurchase from Sanken Electric: In July 2024, Allegro MicroSystems, Inc. (ALGM) repurchased 39 million shares from Sanken Electric at $23.16 per share. This reduced Sanken's ownership from approximately 50.8% to 32.5%.
• Lock-up Agreement: As part of the share repurchase agreement, Sanken agreed to a 14-month lock-up period, restricting them from selling additional shares.
• onsemi's Acquisition Proposal: In March 2025, onsemi proposed to acquire Allegro MicroSystems, Inc. (ALGM) for $35.10 per share in cash but withdrew the offer in April 2025 due to the reluctance of Allegro's board to engage fully.

Institutional Ownership Trends:

Analyzing the changes in institutional holdings provides insights into investor sentiment:

• FMR LLC: Decreased its holdings by -5,479,320 shares.
• Vanguard Group Inc.: Decreased its holdings by -636,594 shares.
• BlackRock, Inc.: Decreased its holdings by -1,085,798 shares.
• JPMorgan Chase & Co.: Decreased its holdings by -492,121 shares.
• State Street Corp.: Increased its holdings by 391,193 shares.
• Capital Research Global Investors: Increased its holdings by 353,776 shares.
• Wellington Management Group LLP: Increased its holdings by 934,048 shares.
• Clearbridge Investments, LLC: Decreased its holdings by -547,074 shares.

These changes reflect ongoing portfolio adjustments and varying outlooks on Allegro MicroSystems, Inc. (ALGM)’s future performance.

Insider Activity:

Examining insider trading activity can offer signals about management's perspective on the company's valuation and prospects:

• Over the past 12 months, insiders have bought 540,150 shares and sold 38,962,128 shares.
• Recent transactions include acquisitions of shares by officers and directors, indicating confidence in the company’s long-term prospects.

Executive Changes:

Recent executive changes may also influence investor perceptions:

• Max Glover transitioned from Senior Vice President of Worldwide Sales to a strategic advisor role in March 2025.
• Rick Madormo was appointed as the new Senior Vice President of Worldwide Sales, effective March 24, 2025.

Such changes in leadership can lead to strategic shifts and market reactions, influencing investor sentiment.

Additional Factors:

Other elements influencing investor behavior include:

• Analyst Ratings: Approximately 92% of Wall Street analysts recommend a 'Buy' rating for Allegro MicroSystems, Inc. (ALGM).
• Earnings Estimates: Earnings per share (EPS) for Q3 fiscal year 2025 was reported at $0.07, slightly below the forecast of $0.0644.

These factors, combined with the ownership structure and recent activities of major investors, play a crucial role in shaping market sentiment and the future direction of Allegro MicroSystems, Inc. (ALGM).

For further insights into Allegro MicroSystems, Inc. (ALGM)'s financial standing, explore Breaking Down Allegro MicroSystems, Inc. (ALGM) Financial Health: Key Insights for Investors.

The following table summarizes the top mutual fund holders of Allegro MicroSystems, Inc. (ALGM) as of December 30, 2024:

Allegro MicroSystems, Inc. (ALGM) Market Impact and Investor Sentiment

Investor sentiment and market reactions significantly influence Allegro MicroSystems, Inc. (ALGM). Recent events, such as acquisition proposal withdrawals and executive changes, have triggered notable shifts in stock performance and investor confidence. Monitoring these dynamics provides critical insights into the company's trajectory.

Here's a breakdown of key factors influencing investor sentiment:

• Acquisition Developments: The withdrawal of ON Semiconductor's $6.9 billion acquisition offer on April 14, 2025, led to an immediate negative market reaction. Allegro MicroSystems Inc.'s stocks have been trading down by -11.95 percent, impacted by investor concerns over market dynamics. The failure to finalize a purchase at $35.10 per share by Onsemi brought Allegro's stock down 8% to $20.12, significantly hitting investor confidence and company valuation.
• Executive Changes: Executive transitions, such as Max Glover's move from Senior Vice President of Worldwide Sales to a strategic advisor role, can influence investor perceptions. Such changes often prompt reassessments of the company's strategic direction and market performance.
• Earnings and Guidance: Earnings reports and future guidance play a crucial role. For example, Allegro MicroSystems reported its financial results for the third quarter of fiscal year 2025, revealing an earnings per share (EPS) of $0.07, which fell short of the forecasted $0.0644.

Recent market reactions to these events include:

• Stock Volatility: Allegro MicroSystems' shares are extremely volatile and have had 36 moves greater than 5% over the last year.
• Price Drops: Following the withdrawn acquisition proposal, shares of Allegro MicroSystems (NASDAQ:ALGM) fell 13.4% in the pre-market session.
• Analyst Revisions: Analysts have updated their recommendations and price targets in response to these developments.

Analyst perspectives offer valuable insights into how key investors view Allegro MicroSystems, Inc.'s future. Here's what analysts are saying:

• Mizuho: Believes a fabless ALGM's strong CPV (approximately $40 for ICE and up to $120+ for 800V EVs), leadership position in Magnetic sensing for Autos/EVs/ADAS (e-Mobility), and strong low-power small-footprint PowerIC/gate driver IC portfolio for industrial/Data Center, make it an attractive target in a deal with ON or another analog supplier.
• TD Cowen: Has identified Allegro as a top Small/Mid-cap (Smidcap) pick, with an updated stock price target of $35.00.
• Overall Ratings: Based on 14 Wall Street analysts offering stock ratings for Allegro MicroSystems, 92% suggest a 'Buy,' 7% recommend 'Hold,' and 0% advise to 'Sell'.

Analysts' price targets for Allegro MicroSystems (ALGM) vary, reflecting different expectations for the stock's future value. The average target is $28.5, with a high estimate of $31.00 and a low estimate of $23.00. The current average has risen by 8.9% from the previous average price target of $26.17.

Institutional investors' actions also provide insight into market sentiment. Recent activity includes:

• FMR LLC removed 5,479,320 shares (-19.4%) from their portfolio in Q4 2024, for an estimated $119,777,935.
• SCHONFELD STRATEGIC ADVISORS LLC added 1,620,888 shares (+inf%) to their portfolio in Q4 2024, for an estimated $35,432,611.
• PALOMA PARTNERS MANAGEMENT CO added 1,594,170 shares (+312.8%) to their portfolio in Q4 2024, for an estimated $34,848,556.

Here's a summary of analyst ratings for Allegro MicroSystems:

In addition to these factors, it's important to consider Allegro MicroSystems' financial health:

• Revenue: Allegro's revenue sits at $1.05B, translating to a revenue per share of $5.70, revealing a strong backdrop of sales.
• Profitability: However, a stark contrast emerges with the negative EBIT margin at -2.7% and a notably low profit margin hovering below threshold at -8.4%.
• Debt Management: Allegro MicroSystems's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.43, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
• Liquidity: Allegro MicroSystems showcases robust asset management with a current ratio at a healthy 4.9, ensuring adequate liquidity to cover short-term liabilities.

For more insights into Allegro MicroSystems, Inc.'s values, see Mission Statement, Vision, & Core Values of Allegro MicroSystems, Inc. (ALGM).