Long Position on ALGM @ $42.50 on 6/28/2023 (Momentum)

Allegro MicroSystems, Inc (ALGM) 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, speed, and current sensor ICs; power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers; and photonic and advanced 3D sensing components.

The company sells its products to original equipment manufacturers and suppliers primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment.

It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. 

Shares are heading higher along an upward trendline support. Higher share prices are expected. On May 12th, ALGM reported Quarter March 2023 earnings of $0.38 per share on revenue of $240.5 million. The consensus earnings estimate was $0.37 per share on revenue of $265.1 million. Revenue grew 20.1% on a year-over-year basis.

Entry Point: $42.50

Stop Loss: $40.00

Trading Range: $19.20 - $48.72

Target Price: $46.70

Updates

7/12/2023 2:48:45 PM

ALGM closed at $47.25

Position closed on 7/12/2023 at price of $47.25 with a 11.18% gain in 14 days.

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