Allegro MicroSystems, Inc. (NASDAQ:ALGM) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is broadly positive on Allegro MicroSystems, with 10 of 12 brokerages rating the stock a buy and an average target price of $51.80, implying further upside from recent trading levels.
• The company beat quarterly expectations, reporting EPS of $0.17 versus $0.16 expected and revenue of $243.19 million, up 26.1% year over year.
• Shares were trading near $47.84, close to the 12-month high of $52.80, while insider selling and recent institutional buying highlighted mixed trading activity around the stock.

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) have earned an average rating of "Moderate Buy" from the twelve brokerages that are currently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and ten have assigned a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $51.80.

Several research analysts recently weighed in on the company. Needham & Company LLC raised their target price on Allegro MicroSystems from $45.00 to $55.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Wells Fargo & Company boosted their price target on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Weiss Ratings reissued a "sell (d-)" rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Evercore restated an "outperform" rating and set a $53.00 price objective on shares of Allegro MicroSystems in a research report on Friday, May 8th. Finally, Morgan Stanley raised shares of Allegro MicroSystems from an "equal weight" rating to an "overweight" rating and set a $51.00 price objective on the stock in a research note on Friday, February 13th.

Allegro MicroSystems Price Performance

NASDAQ ALGM opened at $47.84 on Friday. Allegro MicroSystems has a 12 month low of $22.41 and a 12 month high of $52.80. The firm has a market capitalization of $8.91 billion, a PE ratio of -531.54 and a beta of 2.02. The company's 50 day simple moving average is $40.47 and its 200 day simple moving average is $34.64. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The firm had revenue of $243.19 million during the quarter, compared to the consensus estimate of $235.94 million. During the same period in the prior year, the firm posted $0.06 earnings per share. The firm's revenue for the quarter was up 26.1% compared to the same quarter last year. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. As a group, equities research analysts forecast that Allegro MicroSystems will post 0.77 EPS for the current fiscal year.

Insider Activity

In other news, CAO Roald Graham Webster sold 5,217 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $44.88, for a total transaction of $234,138.96. Following the completion of the sale, the chief accounting officer owned 13,106 shares in the company, valued at approximately $588,197.28. This represents a 28.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Sharon Briansky sold 8,948 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $47.54, for a total value of $425,387.92. Following the sale, the senior vice president owned 75,232 shares of the company's stock, valued at $3,576,529.28. This trade represents a 10.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 63,607 shares of company stock valued at $2,950,114 in the last ninety days. 0.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently modified their holdings of ALGM. Bank of America Corp DE lifted its holdings in shares of Allegro MicroSystems by 48.3% during the first quarter. Bank of America Corp DE now owns 855,453 shares of the company's stock valued at $26,972,000 after purchasing an additional 278,798 shares during the last quarter. California State Teachers Retirement System increased its stake in Allegro MicroSystems by 21.8% in the 1st quarter. California State Teachers Retirement System now owns 149,826 shares of the company's stock worth $4,724,000 after purchasing an additional 26,828 shares in the last quarter. Maverick Capital Ltd. acquired a new stake in Allegro MicroSystems during the 1st quarter worth about $1,331,000. Quantinno Capital Management LP lifted its stake in Allegro MicroSystems by 104.9% during the first quarter. Quantinno Capital Management LP now owns 133,902 shares of the company's stock valued at $4,222,000 after buying an additional 68,549 shares in the last quarter. Finally, Castleark Management LLC purchased a new stake in Allegro MicroSystems during the first quarter valued at about $4,648,000. 56.45% of the stock is owned by institutional investors and hedge funds.

About Allegro MicroSystems

Allegro MicroSystems, Inc NASDAQ: ALGM is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro's product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.

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