Allegro MicroSystems, Inc. (NASDAQ:ALGM – Get Free Report) has received an average recommendation of “Moderate Buy” from the thirteen research firms that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, one has given a hold rating, ten have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $49.33.
ALGM has been the subject of a number of recent research reports. Royal Bank Of Canada started coverage on shares of Allegro MicroSystems in a research note on Friday, October 2nd. They set an “outperform” rating and a $50.00 price objective for the company. TD Cowen dropped their price target on shares of Allegro MicroSystems from $48.00 to $40.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Barclays decreased their price objective on shares of Allegro MicroSystems from $48.00 to $45.00 and set an “equal weight” rating for the company in a report on Friday. Mizuho dropped their price objective on shares of Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating for the company in a report on Friday. Finally, Morgan Stanley upped their price target on Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st.
View Our Latest Stock Analysis on ALGM
Allegro MicroSystems News Summary
Here are the key news stories impacting Allegro MicroSystems this week:
- Positive Sentiment: Allegro reported second-quarter fiscal 2027 revenue of approximately $277 million, up 29% year over year and ahead of the roughly $271 million consensus estimate. Adjusted earnings were $0.26 per share, exceeding expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior-year period. Allegro MicroSystems Reports Second Quarter 2027 Results
- Positive Sentiment: Management highlighted record sales in industrial and other markets and data centers, along with improving inventory levels, stronger demand signals and ongoing design wins. These trends support the longer-term growth outlook, particularly in electrification, automation and data-center applications. ALGM Q3 Deep Dive
- Neutral Sentiment: Analysts remain broadly constructive, but several firms reduced their targets after the results: Wells Fargo to $40 from $45, UBS to $48 from $50, Barclays to $45 from $48, Mizuho to $46 from $58 and Needham to $50 from $57. Ratings remained positive or neutral, indicating expectations were reset rather than fully reversed. Analysts Cut Their Forecasts on Allegro MicroSystems
- Negative Sentiment: The stock’s decline reflects concerns that near-term demand may not be strong enough to justify prior valuation assumptions. Investors are also weighing capacity constraints, the pace of recovery across end markets and the possibility that the earnings beat will not translate into a materially higher outlook. Allegro MicroSystems Sinks Despite Earnings Beat
Allegro MicroSystems Stock Performance
NASDAQ:ALGM opened at $30.53 on Wednesday. The business has a 50 day moving average of $35.09 and a 200 day moving average of $40.66. The company has a market capitalization of $5.69 billion, a price-to-earnings ratio of 203.55, a PEG ratio of 0.90 and a beta of 2.05. The company has a debt-to-equity ratio of 0.28, a current ratio of 4.13 and a quick ratio of 2.79. Allegro MicroSystems has a 1-year low of $22.41 and a 1-year high of $71.77.
Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.02. The business had revenue of $276.88 million during the quarter, compared to analyst estimates of $270.86 million. Allegro MicroSystems had a return on equity of 10.34% and a net margin of 3.07%. Allegro MicroSystems’s revenue for the quarter was up 29.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.13 EPS. On average, sell-side analysts predict that Allegro MicroSystems will post 0.65 earnings per share for the current fiscal year.
Insider Activity
In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $44.39, for a total transaction of $101,431.15. Following the sale, the senior vice president owned 31,052 shares in the company, valued at $1,378,398.28. This trade represents a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.50% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Allegro MicroSystems
A number of large investors have recently added to or reduced their stakes in ALGM. Parallel Advisors LLC lifted its position in shares of Allegro MicroSystems by 42.8% in the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after acquiring an additional 302 shares in the last quarter. SBI Securities Co. Ltd. increased its stake in Allegro MicroSystems by 17.4% in the 3rd quarter. SBI Securities Co. Ltd. now owns 2,059 shares of the company’s stock valued at $75,000 after buying an additional 305 shares during the period. Signaturefd LLC grew its position in Allegro MicroSystems by 51.3% during the third quarter. Signaturefd LLC now owns 1,070 shares of the company’s stock worth $39,000 after buying an additional 363 shares during the period. Transamerica Financial Advisors LLC acquired a new position in shares of Allegro MicroSystems in the second quarter worth $27,000. Finally, Rakuten Securities Inc. purchased a new position in Allegro MicroSystems during the second quarter worth approximately $31,000. 56.45% of the stock is currently owned by institutional investors.
Allegro MicroSystems Company Profile
Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.
The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.
Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.
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