Allegro MicroSystems (NASDAQ:ALGM) Hits New 52-Week High - What's Next?

Key Points

• Allegro MicroSystems hit a new 52-week high on Monday, trading as high as $60.30 and last at about $60.66, after closing previously at $59.00.
• Recent analyst sentiment has been mostly positive, with multiple firms raising price targets and issuing Buy/Outperform ratings; the consensus rating is Moderate Buy with an average target of $51.80.
• The company’s latest earnings beat expectations, reporting $0.17 EPS on revenue of $243.19 million, while revenue rose 26.1% year over year. However, insiders have sold shares recently, including two SVPs, even as institutional ownership remains high at 56.45%.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s stock price reached a new 52-week high on Monday . The stock traded as high as $60.30 and last traded at $60.6560, with a volume of 14776 shares traded. The stock had previously closed at $59.00.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. UBS Group boosted their price objective on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Wall Street Zen upgraded shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Sunday. Wells Fargo & Company raised their target price on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Finally, 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. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $51.80.

Allegro MicroSystems Trading Down 0.0%

The firm has a market capitalization of $10.98 billion, a PE ratio of -658.40 and a beta of 1.98. The company's 50-day simple moving average is $46.26 and its 200 day simple moving average is $37.46. The company has a quick ratio of 2.21, a current ratio of 3.45 and a debt-to-equity ratio of 0.30.

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 analysts' consensus estimates of $0.16 by $0.01. The firm had revenue of $243.19 million for the quarter, compared to the consensus estimate of $235.94 million. Allegro MicroSystems had a negative net margin of 1.67% and a positive return on equity of 6.09%. The company's quarterly revenue was up 26.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.06 EPS. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. As a group, sell-side analysts expect that Allegro MicroSystems, Inc. will post 0.77 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Richard Madormo sold 5,000 shares of the firm's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $52.72, for a total value of $263,600.00. Following the completion of the sale, the senior vice president owned 69,687 shares of the company's stock, valued at $3,673,898.64. This trade represents a 6.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Sharon Briansky sold 8,948 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $47.54, for a total value of $425,387.92. Following the completion of the sale, the senior vice president directly owned 75,232 shares of the company's stock, valued at $3,576,529.28. The trade was a 10.63% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Allegro MicroSystems

Institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE increased its stake in Allegro MicroSystems by 136.6% during the 3rd quarter. Bank of America Corp DE now owns 952,679 shares of the company's stock valued at $27,818,000 after purchasing an additional 3,556,410 shares in the last quarter. Invesco Ltd. lifted 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 period. Alliancebernstein L.P. grew its holdings in shares of Allegro MicroSystems by 189.4% during the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock valued at $94,360,000 after buying an additional 1,806,183 shares during the last quarter. Norges Bank acquired a new position in shares of Allegro MicroSystems in the 4th quarter valued at $38,457,000. Finally, Adage Capital Partners GP L.L.C. increased its position in shares of Allegro MicroSystems by 77.8% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock valued at $73,968,000 after acquiring an additional 1,227,317 shares during the period. Institutional investors and hedge funds 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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