Allegro MicroSystems (NASDAQ:ALGM) Hits New 52-Week High - Here's Why

Key Points

• Allegro MicroSystems (NASDAQ: ALGM) hit a new 52-week high, trading as high as $54.54 after closing at $50.40 previously, signaling strong recent momentum in the stock.
• Analyst sentiment is mostly positive: several firms raised price targets, and the consensus rating is Moderate Buy with an average price target of $51.80, though a few analysts remain cautious.
• The company’s latest earnings beat expectations, with revenue up 26.1% year over year and EPS of $0.17 versus estimates of $0.16, while institutional ownership remains high at 56.45%.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) hit a new 52-week high on Monday . The company traded as high as $54.54 and last traded at $54.56, with a volume of 857171 shares. The stock had previously closed at $50.40.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Mizuho upped their target price on shares of Allegro MicroSystems from $44.00 to $54.00 and gave the stock an "outperform" rating in a research note on Friday, May 8th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Allegro MicroSystems in a research note on Wednesday, May 6th. Needham & Company LLC upped their target price on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Wall Street Zen lowered shares of Allegro MicroSystems from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Jefferies Financial Group restated a "buy" rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday, May 7th. Ten equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Allegro MicroSystems presently has an average rating of "Moderate Buy" and a consensus price target of $51.80.

Allegro MicroSystems Price Performance

The company has a market cap of $10.26 billion, a P/E ratio of -611.60 and a beta of 1.98. The company has a fifty day moving average price of $43.99 and a two-hundred day moving average price of $36.40. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.21 and a current ratio of 3.45.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.17 earnings per share 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 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 prior year, the company posted $0.06 EPS. The company's 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. On average, sell-side analysts anticipate that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current fiscal year.

Insider Buying and Selling at Allegro MicroSystems

In other Allegro MicroSystems news, CAO Roald Graham Webster sold 5,217 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the completion of the transaction, the chief accounting officer directly owned 13,106 shares in the company, valued at $588,197.28. The trade was a 28.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Richard Madormo sold 5,000 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total transaction of $263,600.00. Following the transaction, the senior vice president owned 69,687 shares of the company's stock, valued at approximately $3,673,898.64. This represents a 6.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Capital Research Global Investors raised its position in Allegro MicroSystems by 5.8% during the third quarter. Capital Research Global Investors now owns 16,824,722 shares of the company's stock valued at $491,282,000 after purchasing an additional 920,365 shares in the last quarter. Vanguard Group Inc. grew its stake in shares of Allegro MicroSystems by 0.6% during the third quarter. Vanguard Group Inc. now owns 14,293,465 shares of the company's stock worth $417,369,000 after buying an additional 87,526 shares during the last quarter. Invesco Ltd. grew its stake in shares of Allegro MicroSystems by 44.0% during the fourth quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock worth $201,835,000 after buying an additional 2,338,624 shares during the last quarter. State Street Corp grew its stake in shares of Allegro MicroSystems by 1.5% during the fourth quarter. State Street Corp now owns 5,359,488 shares of the company's stock worth $141,383,000 after buying an additional 78,203 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. grew its stake in shares of Allegro MicroSystems by 77.8% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock worth $73,968,000 after purchasing an additional 1,227,317 shares during the last quarter. 56.45% of the stock is currently owned by institutional investors and hedge funds.

Allegro MicroSystems Company Profile

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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