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

Key Points

• Allegro MicroSystems, Inc. has received an average rating of "Moderate Buy" from analysts, with two holding and eight rating the stock as a buy.
• The company reported a 21.9% increase in revenue year-over-year for its latest quarter, reaching $203.41 million, and met the consensus earnings estimate of $0.09 EPS.
• Recent price objectives from various analysts have been adjusted, with estimates ranging from $30.00 to $42.00, reflecting changing market perceptions of the company's value.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) has been assigned an average rating of "Moderate Buy" from the ten analysts that are covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $36.7778.

Several analysts have recently weighed in on the stock. TD Cowen reduced their price objective on shares of Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating for the company in a research report on Friday, August 1st. Bank of America lowered their price objective on shares of Allegro MicroSystems from $45.00 to $38.00 and set a "buy" rating on the stock in a research report on Friday, September 5th. Barclays raised their price objective on shares of Allegro MicroSystems from $23.00 to $30.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Wells Fargo & Company reissued an "overweight" rating and set a $42.00 price objective (up previously from $33.00) on shares of Allegro MicroSystems in a report on Wednesday, July 16th. Finally, Morgan Stanley decreased their price objective on shares of Allegro MicroSystems from $38.00 to $35.00 and set an "equal weight" rating on the stock in a research report on Friday, August 1st.

Allegro MicroSystems Trading Down 0.1%

Shares of ALGM opened at $31.42 on Tuesday. Allegro MicroSystems has a 12-month low of $16.38 and a 12-month high of $38.45. The firm has a market capitalization of $5.81 billion, a P/E ratio of -84.92 and a beta of 1.74. The firm has a 50-day moving average price of $31.90 and a 200 day moving average price of $28.23. The company has a current ratio of 3.70, a quick ratio of 2.26 and a debt-to-equity ratio of 0.34.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.09 EPS for the quarter, hitting the consensus estimate of $0.09. Allegro MicroSystems had a negative net margin of 9.00% and a positive return on equity of 2.09%. The firm had revenue of $203.41 million for the quarter, compared to analyst estimates of $197.82 million. During the same period in the prior year, the business posted $0.03 EPS. The business's revenue for the quarter was up 21.9% compared to the same quarter last year. Allegro MicroSystems has set its Q2 2026 guidance at 0.100-0.140 EPS. Sell-side analysts forecast that Allegro MicroSystems will post 0.01 EPS for the current year.

Insider Activity at Allegro MicroSystems

In related news, CAO Roald Graham Webster sold 8,266 shares of the stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $32.81, for a total transaction of $271,207.46. Following the completion of the sale, the chief accounting officer owned 17,300 shares of the company's stock, valued at approximately $567,613. This represents a 32.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Several institutional investors and hedge funds have recently made changes to their positions in ALGM. Fifth Third Bancorp lifted its stake in Allegro MicroSystems by 63.7% during the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock worth $33,000 after purchasing an additional 504 shares during the last quarter. UMB Bank n.a. grew its holdings in Allegro MicroSystems by 68.6% during the first quarter. UMB Bank n.a. now owns 1,420 shares of the company's stock worth $36,000 after acquiring an additional 578 shares during the period. DekaBank Deutsche Girozentrale acquired a new position in Allegro MicroSystems during the first quarter worth about $71,000. Nisa Investment Advisors LLC increased its stake in Allegro MicroSystems by 158.8% in the 2nd quarter. Nisa Investment Advisors LLC now owns 2,210 shares of the company's stock worth $76,000 after purchasing an additional 1,356 shares in the last quarter. Finally, Summit Securities Group LLC increased its stake in Allegro MicroSystems by 257.8% in the 1st quarter. Summit Securities Group LLC now owns 4,000 shares of the company's stock worth $101,000 after purchasing an additional 2,882 shares in the last quarter. 56.45% of the stock is currently owned by hedge funds and other 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.

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