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

Key Points

• Analysts maintain a “Moderate Buy” consensus on Allegro MicroSystems, with 10 buy, one hold and one sell rating. The average 12-month price target is $53.45, with targets ranging from $48 to $62.
• Allegro exceeded quarterly expectations, reporting EPS of $0.23 versus $0.21 expected and revenue of $259.24 million, up 27.5% year over year. The company guided to Q2 2027 EPS of $0.23–$0.26.
• Insiders sold 15,144 shares worth about $709,000 over the past 90 days, while institutional investors and hedge funds own 56.45% of the stock.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twelve ratings firms that are covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and ten have assigned a buy rating to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $53.4545.

A number of analysts have recently weighed in on the stock. Needham & Company LLC upped their price target on shares of Allegro MicroSystems from $55.00 to $57.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Barclays cut shares of Allegro MicroSystems from an "overweight" rating to an "equal weight" rating and set a $48.00 price objective on the stock. in a research note on Monday, July 20th. Jefferies Financial Group restated a "buy" rating and set a $62.00 price objective on shares of Allegro MicroSystems in a research report on Thursday, May 7th. Wall Street Zen upgraded Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Sunday, August 2nd. Finally, Wells Fargo & Company raised their target price on Allegro MicroSystems from $48.00 to $56.00 and gave the company an "overweight" rating in a report on Friday, May 8th.

Allegro MicroSystems Trading Up 3.9%

ALGM opened at $44.13 on Friday. Allegro MicroSystems has a twelve month low of $22.41 and a twelve month high of $71.77. The company has a 50-day simple moving average of $50.52 and a 200 day simple moving average of $43.29. The company has a quick ratio of 2.33, a current ratio of 3.70 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $8.23 billion, a price-to-earnings ratio of 735.62, a P/E/G ratio of 1.34 and a beta of 1.94.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.21 by $0.02. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The firm had revenue of $259.24 million for the quarter, compared to the consensus estimate of $251.44 million. During the same period in the prior year, the company posted $0.09 earnings per share. The business's revenue for the quarter was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Analysts predict that Allegro MicroSystems will post 0.65 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CAO Roald Graham Webster sold 5,217 shares of the firm's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $44.88, for a total value of $234,138.96. Following the sale, the chief accounting officer directly owned 13,106 shares of the company's stock, valued at $588,197.28. This trade represents a 28.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Richard Madormo sold 5,000 shares of Allegro MicroSystems stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total value of $263,600.00. Following the completion of the transaction, the senior vice president owned 69,687 shares in the company, valued at approximately $3,673,898.64. This represents a 6.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 15,144 shares of company stock worth $708,972 over the last 90 days. Corporate insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Allegro MicroSystems

A number of hedge funds have recently made changes to their positions in the stock. Whalen Wealth Management Inc. bought a new stake in shares of Allegro MicroSystems during the 2nd quarter valued at approximately $445,000. Algert Global LLC lifted its stake in Allegro MicroSystems by 868.0% in the 2nd quarter. Algert Global LLC now owns 65,240 shares of the company's stock valued at $4,542,000 after purchasing an additional 58,500 shares during the last quarter. Sanctuary Advisors LLC acquired a new stake in Allegro MicroSystems in the second quarter valued at approximately $327,000. Meiji Yasuda Asset Management Co Ltd. acquired a new stake in Allegro MicroSystems in the second quarter valued at approximately $200,000. Finally, Elevation Point Wealth Partners LLC acquired a new stake in Allegro MicroSystems in the second quarter valued at approximately $441,000. 56.45% of the stock is currently 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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