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

Key Points

• Allegro MicroSystems has received a consensus recommendation of "Moderate Buy" from ten analysts, with a 12-month average price target of $37.56.
• Recent insider transactions revealed CAO Roald Graham Webster sold 8,266 shares, decreasing his ownership by 32.33%, while 0.40% of the stock is owned by insiders.
• The company reported earnings of $0.09 EPS for the last quarter, meeting analysts' expectations, with a revenue of $203.41 million—up 21.9% from the previous year.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the ten research firms that are covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation, seven have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $37.5556.

ALGM has been the subject of several recent analyst reports. Wells Fargo & Company restated an "overweight" rating and issued a $42.00 price target (up previously from $33.00) on shares of Allegro MicroSystems in a research note on Wednesday, July 16th. Needham & Company LLC upped their price target on Allegro MicroSystems from $25.00 to $37.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Morgan Stanley lowered their price target on Allegro MicroSystems from $38.00 to $35.00 and set an "equal weight" rating on the stock in a report on Friday, August 1st. TD Cowen dropped their price target on shares of Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating on the stock in a report on Friday, August 1st. Finally, Mizuho lifted their price target on shares of Allegro MicroSystems from $37.00 to $40.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st.

Allegro MicroSystems Stock Down 3.6%

Shares of NASDAQ ALGM traded down $1.16 during midday trading on Friday, hitting $30.85. The stock had a trading volume of 1,204,008 shares, compared to its average volume of 1,379,657. The business's 50 day moving average is $33.34 and its 200-day moving average is $27.66. Allegro MicroSystems has a 52 week low of $16.38 and a 52 week high of $38.45. The company has a quick ratio of 2.26, a current ratio of 3.70 and a debt-to-equity ratio of 0.34. The company has a market cap of $5.71 billion, a P/E ratio of -83.38 and a beta of 1.74.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.09 earnings per share for the quarter, meeting the consensus estimate of $0.09. The company had revenue of $203.41 million during the quarter, compared to the consensus estimate of $197.82 million. Allegro MicroSystems had a negative net margin of 9.00% and a positive return on equity of 2.09%. The firm's quarterly revenue was up 21.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.03 earnings per share. Allegro MicroSystems has set its Q2 2026 guidance at 0.100-0.140 EPS. As a group, analysts predict that Allegro MicroSystems will post 0.01 EPS for the current year.

Insider Activity at Allegro MicroSystems

In other news, CAO Roald Graham Webster sold 8,266 shares of Allegro MicroSystems stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $32.81, for a total value of $271,207.46. Following the completion of the sale, the chief accounting officer directly owned 17,300 shares in the company, valued at $567,613. The trade was a 32.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.40% of the stock is owned by corporate insiders.

Institutional Trading of Allegro MicroSystems

A number of large investors have recently made changes to their positions in ALGM. Invesco Ltd. grew its stake in shares of Allegro MicroSystems by 131.5% in the first quarter. Invesco Ltd. now owns 4,835,641 shares of the company's stock worth $121,520,000 after acquiring an additional 2,746,880 shares during the period. Alliancebernstein L.P. grew its stake in shares of Allegro MicroSystems by 189.4% in the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock worth $94,360,000 after acquiring an additional 1,806,183 shares during the period. Kodai Capital Management LP purchased a new position in shares of Allegro MicroSystems in the first quarter worth approximately $41,610,000. Norges Bank purchased a new position in shares of Allegro MicroSystems in the second quarter worth approximately $48,138,000. Finally, Segall Bryant & Hamill LLC purchased a new position in shares of Allegro MicroSystems in the first quarter worth approximately $32,959,000. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc, together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers.