Allegro Microsystems, Inc. Stock Price, News & Analysis

Allegro MicroSystems (Nasdaq: ALGM) reported Q1 2025 results with sales of $167 million, above the mid-point of their outlook. Non-GAAP EPS was $0.03, at the high end of the outlook. The company made a $50 million voluntary debt repayment and announced the repurchase of 39 million shares from its majority shareholder. Q1 automotive sales were $131.2 million, while industrial and other sales were $35.7 million. GAAP gross margin was 44.8%, and operating margin was -6.4%. For Q2 2025, Allegro expects net sales between $182-192 million and non-GAAP diluted EPS of $0.04-$0.08.

Allegro MicroSystems (Nasdaq: ALGM) has announced the allocation of a $400 million term loan tranche. This new loan will be used to:

• Facilitate the repurchase of shares from majority shareholder Sanken Electric Co.,
• Fully refinance Allegro's existing term loan facility
• Fund general corporate purposes

The new term loan is expected to mature on October 31, 2030, with an interest rate based on SOFR plus a 2.25% margin. This represents a 0.50% reduction compared to the existing term loan. The transaction is subject to market conditions and is not guaranteed to be completed as described.

Allegro MicroSystems (Nasdaq: ALGM) has completed the first of two share repurchases from its largest shareholder, Sanken Electric. The company is buying back a total of 39 million shares at $23.16 per share. The first repurchase of 29 million shares was financed by issuing new stock for $666 million. The second repurchase of 10 million shares will be financed through a term loan and cash on hand.

This move will reduce Sanken's ownership in Allegro from 50.8% to 32.5%. Sanken has agreed to a 14-month lock-up period. The companies have also amended their Stockholders Agreement, adjusting Sanken's board representation rights based on ownership levels. Allegro's CEO, Vineet Nargolwala, stated that this buyback will lead to broader ownership, increased liquidity, and improved governance.

Allegro MicroSystems (Nasdaq: ALGM) has announced the pricing of a primary offering of 25,000,000 shares of common stock at $24.00 per share, resulting in gross proceeds of $600,000,000. The company has also granted underwriters a 30-day option to purchase up to an additional 3,750,000 shares. Proceeds will be used to repurchase shares from majority shareholder Sanken Electric Co., , reducing Sanken's ownership to approximately 33.2% (or 32.5% if the underwriters' option is fully exercised). The offering is expected to close around July 26, 2024. Barclays, Morgan Stanley, and UBS Investment Bank are acting as joint lead book-running managers for the offering.

Allegro MicroSystems (Nasdaq: ALGM), a leader in power and sensing solutions, has announced the launch of an incremental term loan syndication under its existing Credit Agreement from June 21, 2023. The proceeds from this loan will be used to repurchase shares from Allegro's majority shareholder, Sanken Electric Co., The transaction is subject to market conditions, with no guarantee of completion or specific terms. Morgan Stanley and Barclays are acting as joint lead arrangers and book-runners for the loan, while PJT Partners serves as Allegro's financial advisor.

Allegro MicroSystems (Nasdaq: ALGM), a leader in power and sensing solutions, has launched a primary offering of 25,000,000 common stock shares. The company may grant underwriters a 30-day option for an additional 3,750,000 shares. Proceeds will be used to repurchase shares from majority shareholder Sanken Electric Co., at the same price as the offering. Barclays, Morgan Stanley, and UBS Investment Bank are joint lead book-running managers, with PJT Partners as financial advisor. The offering is subject to market conditions and made through an effective shelf registration statement filed with the SEC.

Allegro MicroSystems (Nasdaq: ALGM) announced it will release its first quarter fiscal 2025 financial results before the market opens on August 1, 2024. Following the release, a conference call hosted by CEO Vineet Nargolwala and CFO Derek D’Antilio will take place at 8:30 a.m. EDT to discuss the results and the business outlook. Analysts and investors can join the call through a live webcast or by dialing in after registering for a PIN. The webcast will be available on the company's website for at least 90 days.

Allegro MicroSystems (Nasdaq: ALGM) has launched two new high-power current sensors, the ACS37220 and ACS37041, aimed at improving efficiency and reliability in industrial, automotive, and clean energy applications. The ACS37220 can monitor high currents up to 200A, while the ACS37041, the smallest leaded magnetic current sensor in the industry, is suitable for applications up to 30A. These sensors integrate the functions of traditional shunt resistors and amplifiers into a single package, reducing heat dissipation, simplifying design, and lowering the bill of materials. This innovation addresses current industry challenges related to space, weight, and cost, making them ideal for low voltage applications under 100V.

Allegro MicroSystems (Nasdaq: ALGM) has launched a new combo chip as part of its High Voltage Power-Thru™ portfolio. This innovative product is designed to provide engineers with greater flexibility in designing high-power applications such as EV chargers, solar inverters, and energy storage systems. The new isolated gate-driver IC solutions, AHV85000 and AHV85040, allow designers to choose external transformers, optimizing cost and space. This flexibility enhances system architecture and power efficiency. Allegro continues to demonstrate its commitment to innovation and customer needs with this latest release.