Allegro MicroSystems (NASDAQ:ALGM) Posts Earnings Results, Meets Estimates

Key Points

• Allegro MicroSystems reported an EPS of $0.09, meeting analysts' estimates, and achieved $203.41 million in revenue, surpassing expectations.
• The company updated its Q2 2026 guidance to a projected EPS of $0.100-$0.140.
• Analyst ratings for Allegro MicroSystems show a mix of target price increases and an overall rating of "Buy," with an average target price of $37.56.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.09 EPS for the quarter, meeting analysts' consensus estimates of $0.09, Briefing.com reports. Allegro MicroSystems had a negative net margin of 9.00% and a positive return on equity of 2.09%. The company 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 firm posted $0.03 EPS. The company's quarterly revenue was up 21.9% on a year-over-year basis. Allegro MicroSystems updated its Q2 2026 guidance to 0.100-0.140 EPS.

Allegro MicroSystems Stock Down 0.8%

ALGM stock traded down $0.24 during midday trading on Tuesday, reaching $31.23. 953,900 shares of the company's stock traded hands, compared to its average volume of 2,906,737. The company has a market cap of $5.78 billion, a price-to-earnings ratio of -84.40 and a beta of 1.74. The firm's fifty day moving average price is $32.39 and its 200-day moving average price is $26.75. The company has a quick ratio of 2.26, a current ratio of 3.70 and a debt-to-equity ratio of 0.34. Allegro MicroSystems has a 52 week low of $16.38 and a 52 week high of $38.45.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on ALGM shares. TD Cowen lowered 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 note on Friday. Needham & Company LLC lifted their price objective on shares of Allegro MicroSystems from $25.00 to $37.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. UBS Group lifted their price objective on shares of Allegro MicroSystems from $35.00 to $42.00 and gave the company a "buy" rating in a research note on Monday, July 7th. Wells Fargo & Company reiterated an "overweight" rating and issued a $42.00 price objective (up previously from $33.00) on shares of Allegro MicroSystems in a research note on Wednesday, July 16th. Finally, Barclays lifted 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. One investment analyst has rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company has an average rating of "Buy" and an average target price of $37.56.

Institutional Trading of Allegro MicroSystems

Several institutional investors have recently made changes to their positions in ALGM. AQR Capital Management LLC bought a new stake in shares of Allegro MicroSystems in the 1st quarter worth $325,000. Royal Bank of Canada grew its stake in shares of Allegro MicroSystems by 70.0% in the 1st quarter. Royal Bank of Canada now owns 117,923 shares of the company's stock worth $2,964,000 after acquiring an additional 48,554 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Allegro MicroSystems by 31.8% in the 1st 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 acquiring an additional 85,607 shares in the last quarter. Institutional investors own 56.45% of the company's stock.

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.