Allegro MicroSystems confirms Onsemi's proposal withdrawal, asserting commitment to stockholders and focus on innovation and market leadership.
Quiver AI Summary
Allegro MicroSystems, Inc. announced that Onsemi has withdrawn its unsolicited acquisition proposal. Allegro's Board of Directors stated they found Onsemi's proposals inadequate after careful review with independent advisors. Despite ongoing communication, Onsemi declined the Board's suggested pathway for improved engagement. Allegro remains dedicated to acting in the best interests of its stockholders and is focused on leveraging its technologies to address significant industry trends in electrification and autonomy. The company emphasized its commitment to innovation and enhancing stockholder value, while also indicating challenges and risks present in the current market environment.
Potential Positives
- The Board of Directors unanimously determined that Onsemi's acquisition proposals were inadequate, demonstrating Allegro's commitment to maximizing stockholder value.
- The Company asserts confidence in its strategic position to capitalize on electrification and autonomy trends through its innovative sensing and power technologies.
- Allegro's ongoing focus on innovation aims to strengthen its competitive advantages and extend market leadership in key sectors such as e-Mobility and clean energy.
Potential Negatives
- Onsemi's withdrawal of its acquisition proposal may indicate a lack of confidence in Allegro's current valuations or strategic direction, potentially harming investor sentiment.
- The statement that proposals from Onsemi were deemed inadequate could reflect negatively on Allegro's perceived value in the market.
- The length and complexity of the press release may dilute the message and fail to reassure investors, leading to confusion about Allegro’s future strategy.
FAQ
What was Onsemi's proposal to Allegro MicroSystems?
Onsemi made an unsolicited proposal to acquire Allegro MicroSystems, which the Board deemed inadequate.
Why did Allegro's Board reject Onsemi's proposals?
The Board, advised by financial and legal experts, found Onsemi's proposals did not meet their valuation standards for stockholder interests.
What is Allegro MicroSystems' focus moving forward?
Allegro is focused on innovation in electrification and autonomy, enhancing their competitive advantages in various markets.
Who are Allegro's financial and legal advisors?
PJT Partners is serving as financial advisor, and Davis Polk & Wardwell LLP is serving as legal advisor to Allegro.
How can stakeholders get more information about Allegro?
Stakeholders can visit Allegro's website at https://www.allegromicro.com/en/ for more details and updates.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ALGM Congressional Stock Trading
Members of Congress have traded $ALGM stock 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $ALGM stock by members of Congress over the last 6 months:
- REPRESENTATIVE JOSH GOTTHEIMER purchased up to $15,000 on 10/17.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$ALGM Insider Trading Activity
$ALGM insiders have traded $ALGM stock on the open market 3 times in the past 6 months. Of those trades, 3 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $ALGM stock by insiders over the last 6 months:
- MICHAEL DOOGUE (SVP, CTO) purchased 15,000 shares for an estimated $285,000
- VINEET A NARGOLWALA (President and CEO) has made 2 purchases buying 5,000 shares for an estimated $99,446 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ALGM Hedge Fund Activity
We have seen 120 institutional investors add shares of $ALGM stock to their portfolio, and 141 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FMR LLC removed 5,479,320 shares (-19.4%) from their portfolio in Q4 2024, for an estimated $119,777,935
- MANUFACTURERS LIFE INSURANCE COMPANY, THE removed 2,050,641 shares (-95.2%) from their portfolio in Q4 2024, for an estimated $44,827,012
- 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
- AMERIPRISE FINANCIAL INC removed 1,590,003 shares (-81.5%) from their portfolio in Q4 2024, for an estimated $34,757,465
- INVESCO LTD. removed 1,166,514 shares (-35.8%) from their portfolio in Q4 2024, for an estimated $25,499,996
- BLACKROCK, INC. removed 1,085,798 shares (-8.5%) from their portfolio in Q4 2024, for an estimated $23,735,544
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$ALGM Analyst Ratings
Wall Street analysts have issued reports on $ALGM in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Loop Capital Markets issued a "Buy" rating on 11/12/2024
- Jefferies issued a "Buy" rating on 10/31/2024
- Barclays issued a "Overweight" rating on 10/31/2024
To track analyst ratings and price targets for $ALGM, check out Quiver Quantitative's $ALGM forecast page.
$ALGM Price Targets
Multiple analysts have issued price targets for $ALGM recently. We have seen 2 analysts offer price targets for $ALGM in the last 6 months, with a median target of $28.0.
Here are some recent targets:
- Gary Mobley from Loop Capital Markets set a target price of $30.0 on 11/12/2024
- Vijay Rakesh from Mizuho Securities set a target price of $26.0 on 10/18/2024
Full Release
MANCHESTER, N.H., April 15, 2025 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (NASDAQ: ALGM) ("Allegro" or the "Company") today issued the following statement regarding Onsemi’s withdrawal of its unsolicited proposal to acquire Allegro:
As a general matter, the Board of Directors of Allegro (“the Board”) believes that public discourse around speculative transactions is not productive nor in the best interests of our stockholders. However, in light of current market speculation about our engagement with Onsemi, we believe it is important to provide stakeholders additional details about the process undertaken by the Board.
As it would with any potentially credible outreach, the Board, in consultation with its independent financial and legal advisors, carefully reviewed and considered Onsemi’s proposals and unanimously determined each was inadequate.
Allegro remained in communication with Onsemi and its advisors (both before and after Onsemi publicly announced its proposal). The Board repeatedly laid out a clear and constructive path for engagement for Onsemi and its advisors that would allow Onsemi the opportunity to offer greater value for our stockholders. Despite continued engagement from the Board and its advisors, Onsemi declined to pursue this path.
The Board has been and remains fully committed to acting in the best interests of its stockholders. We are confident Allegro is uniquely positioned to address the mega-trends of electrification and autonomy with our differentiated sensing and power technologies. Our focus remains on continued innovation to drive forward our competitive advantages while partnering closely with our customers to extend our market leading positions in e-Mobility, clean energy, data center, robotics and automation and unlock additional stockholder value.
PJT Partners is serving as financial advisor to Allegro. Davis Polk & Wardwell LLP is serving as legal advisor to Allegro.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release should be considered forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar words and expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.
Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, filed with the U.S. Securities and Exchange Commission on May 23, 2024, which is available at www.sec.gov. These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholder continues to have influence over us; the negative impact any future issuance or sale of our shares may have on the market price of our common stock; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.
You should read this press release with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
About Allegro Microsystems
Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel automotive, clean energy and industrial automation forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, visit https://www.allegromicro.com/en/.
Allegro Contact:
Jalene Hoover
VP of IR & Corporate Communications
Phone: +1 512 751 6526
[email protected]
Matthew Sherman / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
+1 (212) 355-4449