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

Key Points

• Analysts have given Allegro MicroSystems a consensus rating of "Moderate Buy" based on 12 firm covers (10 buys, 1 hold, 1 sell), with an average 12-month price target of $45.00.
• Several major firms recently raised ratings/targets—most notably Morgan Stanley upgraded to "overweight" with a $51 target and Wells Fargo boosted its target to $48—indicating growing analyst bullishness.
• Allegro beat expectations for the quarter (EPS $0.15 vs. $0.14) and reported revenue up 28.9% YoY to $229.2M; the stock was trading around $37.50 with a market cap of about $6.95B.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twelve ratings firms that are covering the company, Marketbeat reports. One analyst has rated the stock with a sell rating, one has issued a hold rating and ten have given a buy rating to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $45.00.

A number of research firms have weighed in on ALGM. Morgan Stanley upgraded shares of Allegro MicroSystems from an "equal weight" rating to an "overweight" rating and set a $51.00 price target for the company in a research report on Friday, February 13th. Needham & Company LLC boosted their target price on shares of Allegro MicroSystems from $41.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday, February 19th. Jefferies Financial Group reissued a "buy" rating and issued a $45.00 target price on shares of Allegro MicroSystems in a report on Thursday, February 19th. Mizuho set a $38.00 target price on shares of Allegro MicroSystems in a report on Tuesday, December 16th. Finally, Wells Fargo & Company boosted their target price on shares of Allegro MicroSystems from $45.00 to $48.00 and gave the stock an "overweight" rating in a report on Wednesday, February 11th.

Allegro MicroSystems Stock Performance

ALGM opened at $37.50 on Friday. The firm has a market cap of $6.95 billion, a P/E ratio of -468.75 and a beta of 1.70. Allegro MicroSystems has a 1-year low of $16.38 and a 1-year high of $43.86. The company has a 50 day simple moving average of $35.44 and a two-hundred day simple moving average of $31.07. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.65 and a quick ratio of 2.39.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its quarterly earnings results on Thursday, January 29th. The company reported $0.15 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.01. The business had revenue of $229.21 million during the quarter, compared to analyst estimates of $220.78 million. Allegro MicroSystems had a negative net margin of 1.57% and a positive return on equity of 4.35%. The company's revenue was up 28.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.07 earnings per share. Equities analysts forecast that Allegro MicroSystems will post 0.01 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds have recently modified their holdings of ALGM. Royal Bank of Canada lifted its holdings in shares of Allegro MicroSystems by 70.0% in the first quarter. Royal Bank of Canada now owns 117,923 shares of the company's stock worth $2,964,000 after buying an additional 48,554 shares in the last quarter. AQR Capital Management LLC purchased a new position in shares of Allegro MicroSystems in the first quarter worth $325,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Allegro MicroSystems by 31.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 354,610 shares of the company's stock worth $8,911,000 after buying an additional 85,607 shares in the last quarter. Prudential Financial Inc. lifted its holdings in shares of Allegro MicroSystems by 24.0% in the second quarter. Prudential Financial Inc. now owns 15,684 shares of the company's stock worth $536,000 after buying an additional 3,040 shares in the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of Allegro MicroSystems by 5.4% in the second quarter. First Trust Advisors LP now owns 576,478 shares of the company's stock worth $19,710,000 after buying an additional 29,531 shares in the last quarter. Hedge funds and other institutional investors own 56.45% of the company's stock.

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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