Allegro MicroSystems, Inc. (NASDAQ:ALGM – Get Free Report) fell 10.8% during trading on Thursday after Wells Fargo & Company lowered their price target on the stock from $45.00 to $40.00. Wells Fargo & Company currently has an overweight rating on the stock. Allegro MicroSystems traded as low as $32.20 and last traded at $31.5550. 492,638 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 2,609,451 shares. The stock had previously closed at $35.37.
Several other brokerages have also issued reports on ALGM. Mizuho decreased their price target on shares of Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating for the company in a research note on Friday. Wall Street Zen upgraded shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research note on Sunday, August 2nd. Morgan Stanley increased their price objective on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Weiss Ratings cut Allegro MicroSystems from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 23rd. Finally, Benchmark initiated coverage on shares of Allegro MicroSystems in a research report on Wednesday, August 12th. They set a “buy” rating and a $60.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $49.33.
View Our Latest Stock Analysis on Allegro MicroSystems
Insider Activity
In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the business’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $44.39, for a total transaction of $101,431.15. Following the transaction, the senior vice president owned 31,052 shares in the company, valued at $1,378,398.28. The trade was a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.50% of the stock is owned by insiders.
Trending Headlines about Allegro MicroSystems
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
Institutional Investors Weigh In On Allegro MicroSystems
A number of institutional investors and hedge funds have recently bought and sold shares of the company. State of Wyoming acquired a new position in shares of Allegro MicroSystems in the second quarter valued at about $2,247,000. Legal & General Group Plc acquired a new stake in shares of Allegro MicroSystems during the second quarter worth about $11,469,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Allegro MicroSystems in the second quarter valued at approximately $1,634,000. E. Ohman J or Asset Management AB purchased a new stake in Allegro MicroSystems in the third quarter valued at approximately $2,648,000. Finally, Wellington Management Group LLP boosted its position in Allegro MicroSystems by 21.1% in the second quarter. Wellington Management Group LLP now owns 814,937 shares of the company’s stock valued at $56,736,000 after buying an additional 141,841 shares during the last quarter. 56.45% of the stock is owned by institutional investors.
Allegro MicroSystems Trading Down 7.6%
The company’s fifty day moving average is $35.09 and its two-hundred day moving average is $40.66. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.33 and a current ratio of 4.13. The company has a market cap of $5.69 billion, a price-to-earnings ratio of 203.55, a P/E/G ratio of 1.04 and a beta of 1.99.
Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) last posted 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. Allegro MicroSystems had a net margin of 3.07% and a return on equity of 10.34%. The company had revenue of $276.88 million during the quarter, compared to analyst estimates of $270.86 million. During the same period last year, the firm posted $0.13 EPS. Allegro MicroSystems’s revenue for the quarter was up 29.2% compared to the same quarter last year. On average, research analysts anticipate that Allegro MicroSystems, Inc. will post 0.65 EPS for the current year.
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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