- Wednesday, October 16, 2024
Shares of Allegro Microsystems witnessed a decrease of more than 10% this week following a column that raised concerns about the chip supplier's profitability outlook.
A securities filing on Wednesday provided insight into the situation. According to the filing, Allegro's largest external investor sold approximately $189.3 million worth of shares, equivalent to half a million shares. This investor, the private-equity firm One Equity Partners, has been a controlling shareholder of Allegro since the chip firm (ticker: ALGM) went public in a 2020 spinoff from Japan's SanKen Electric (6707. Japan). Under a shareholders' agreement, both One Equity and SanKen appoint directors to Allegro.
Last week, Allegro stock was valued at over $38 per share, but as of Thursday, it had dropped to around $35 per share.
Following this sale, One Equity's stake decreased from 9.2% to 6.6% of Allegro's shares. This comes after a similar amount of stock was sold by One Equity in February. SanKen currently holds a majority stake of 51% in Allegro.
Both One Equity and Allegro have not responded to inquiries regarding Wednesday's stock sale.
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