Allegro MicroSystems (NASDAQ:ALGM) Cut to "Hold" at Wall Street Zen

Key Points

• Allegro MicroSystems (NASDAQ: ALGM) was downgraded by Wall Street Zen from “buy” to “hold”, even though the broader analyst view remains constructive with a consensus rating of Moderate Buy and an average price target of $51.80.
• The stock was trading up about 5.1% at $50.40, near its 52-week high of $54.40. Recent earnings were also solid, with EPS of $0.17 beating estimates and revenue rising 26.1% year over year to $243.19 million.
• Insider selling has been notable, including sales by Director Susan D. Lynch and SVP Sharon Briansky, while institutional ownership remains high at 56.45%. The company also has strong liquidity, with a current ratio of 3.45 and a quick ratio of 2.21.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other research analysts also recently issued reports on the company. Barclays lifted their price objective on Allegro MicroSystems from $46.00 to $48.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. UBS Group lifted their price objective on Allegro MicroSystems from $52.00 to $55.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Jefferies Financial Group reiterated a "buy" rating and issued a $62.00 price target on shares of Allegro MicroSystems in a report on Thursday, May 7th. Mizuho boosted their price target on Allegro MicroSystems from $44.00 to $54.00 and gave the company an "outperform" rating in a report on Friday, May 8th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Ten analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Allegro MicroSystems has an average rating of "Moderate Buy" and a consensus target price of $51.80.

Allegro MicroSystems Trading Up 5.1%

Shares of Allegro MicroSystems stock opened at $50.40 on Friday. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21. Allegro MicroSystems has a 1 year low of $22.41 and a 1 year high of $54.40. The company has a market capitalization of $9.39 billion, a P/E ratio of -559.94 and a beta of 1.98. The business has a 50 day moving average price of $43.99 and a 200 day moving average price of $36.32.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm 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 EPS. The company'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. Sell-side analysts anticipate that Allegro MicroSystems will post 0.77 EPS for the current fiscal year.

Insider Buying and Selling

In other Allegro MicroSystems news, Director Susan D. Lynch sold 16,711 shares of the business's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $45.46, for a total value of $759,682.06. Following the completion of the transaction, the director directly owned 12,805 shares in the company, valued at approximately $582,115.30. The trade was a 56.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Sharon Briansky sold 8,948 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $47.54, for a total value of $425,387.92. Following the completion of the transaction, the senior vice president owned 75,232 shares of the company's stock, valued at $3,576,529.28. This trade represents a 10.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 68,607 shares of company stock worth $3,213,714 in the last three months. 0.40% of the stock is currently owned by insiders.

Institutional Trading of Allegro MicroSystems

Several institutional investors have recently made changes to their positions in ALGM. Hantz Financial Services Inc. grew its stake in shares of Allegro MicroSystems by 86.9% during the 3rd quarter. Hantz Financial Services Inc. now owns 901 shares of the company's stock valued at $26,000 after buying an additional 419 shares during the period. Parallel Advisors LLC grew its stake in shares of Allegro MicroSystems by 42.8% during the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock valued at $32,000 after buying an additional 302 shares during the period. Kestra Advisory Services LLC purchased a new stake in shares of Allegro MicroSystems during the 4th quarter valued at $34,000. CIBC Private Wealth Group LLC grew its stake in shares of Allegro MicroSystems by 14,844.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company's stock valued at $35,000 after buying an additional 1,336 shares during the period. Finally, Caitong International Asset Management Co. Ltd grew its stake in shares of Allegro MicroSystems by 85.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company's stock valued at $38,000 after buying an additional 669 shares during the period. 56.45% of the stock is owned by hedge funds and other institutional investors.

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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