Allegro MicroSystems, Inc. (NASDAQ:ALGM) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Allegro MicroSystems has a consensus analyst rating of “Moderate Buy,” with 10 buy ratings, one hold, and one sell among 12 analysts. The average 12-month price target is $54.30.
• Recent analyst action has been mostly positive, including raised price targets from Mizuho, TD Cowen, and UBS Group, plus an upgrade from Wall Street Zen to buy.
• The company reported strong quarterly results, beating EPS and revenue estimates, while revenue rose 26.1% year over year; however, insiders have also been selling shares in recent months.

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) have earned an average rating of "Moderate Buy" from the twelve analysts that are covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, one has assigned a hold rating and ten have issued a buy rating on the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $54.30.

ALGM has been the subject of a number of analyst reports. 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. Mizuho boosted their price objective on Allegro MicroSystems from $44.00 to $54.00 and gave the company an "outperform" rating in a research report on Friday, May 8th. TD Cowen boosted their price objective on Allegro MicroSystems from $55.00 to $70.00 and gave the company a "buy" rating in a research report on Monday. UBS Group boosted their price objective on Allegro MicroSystems from $52.00 to $55.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Finally, Wall Street Zen upgraded Allegro MicroSystems from a "hold" rating to a "buy" rating in a research report on Sunday.

Insider Buying and Selling at Allegro MicroSystems

In related news, SVP Richard Madormo sold 5,000 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $52.72, for a total transaction of $263,600.00. Following the completion of the transaction, the senior vice president owned 69,687 shares in the company, valued at $3,673,898.64. The trade was a 6.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Michael Doogue sold 30,089 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $47.23, for a total value of $1,421,103.47. Following the transaction, the chief executive officer owned 252,797 shares of the company's stock, valued at $11,939,602.31. This represents a 10.64% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 68,607 shares of company stock worth $3,213,714. 0.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Capital Research Global Investors boosted its position in Allegro MicroSystems by 5.8% during the 3rd quarter. Capital Research Global Investors now owns 16,824,722 shares of the company's stock worth $491,282,000 after acquiring an additional 920,365 shares during the period. Vanguard Group Inc. boosted its position in Allegro MicroSystems by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 14,293,465 shares of the company's stock worth $417,369,000 after acquiring an additional 87,526 shares during the period. Invesco Ltd. boosted its position in Allegro MicroSystems by 44.0% during the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock worth $201,835,000 after acquiring an additional 2,338,624 shares during the period. State Street Corp boosted its position in Allegro MicroSystems by 1.5% during the 4th quarter. State Street Corp now owns 5,359,488 shares of the company's stock worth $141,383,000 after acquiring an additional 78,203 shares during the period. Finally, Adage Capital Partners GP L.L.C. boosted its position in Allegro MicroSystems by 77.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock worth $73,968,000 after acquiring an additional 1,227,317 shares during the period. Institutional investors and hedge funds own 56.45% of the company's stock.

Allegro MicroSystems Stock Performance

Shares of NASDAQ ALGM opened at $55.42 on Thursday. The company has a quick ratio of 2.21, a current ratio of 3.45 and a debt-to-equity ratio of 0.30. The firm's 50-day moving average price is $47.46 and its two-hundred day moving average price is $38.08. Allegro MicroSystems has a 52-week low of $22.41 and a 52-week high of $61.67. The stock has a market capitalization of $10.32 billion, a P/E ratio of -615.71 and a beta of 1.98.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.17 EPS for the quarter, beating 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 company had revenue of $243.19 million during the quarter, compared to the consensus estimate of $235.94 million. During the same period in the previous year, the firm posted $0.06 earnings per share. Allegro MicroSystems's quarterly revenue 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, sell-side analysts forecast that Allegro MicroSystems will post 0.77 earnings per share for the current year.

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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