Bank of America Lowers Allegro MicroSystems (NASDAQ:ALGM) Price Target to $38.00

Key Points

• Bank of America has lowered its price target for Allegro MicroSystems (NASDAQ:ALGM) from $45.00 to $38.00, maintaining a "buy" rating, indicating a potential upside of 26.25% from the previous close.
• Other analysts have also provided positive ratings, with Needham & Company raising their target to $37.00, and Barclays to $30.00, reflecting a general consensus of a "Moderate Buy" rating among multiple firms.
• Allegro MicroSystems reported a revenue increase of 21.9% year-over-year, reaching $203.41 million, and met EPS expectations of $0.09 for the latest quarter ending July 31st.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its price target dropped by equities research analysts at Bank of America from $45.00 to $38.00 in a report released on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Bank of America's target price indicates a potential upside of 25.55% from the company's current price.

Several other analysts have also recently weighed in on ALGM. Needham & Company LLC boosted their price objective on Allegro MicroSystems from $25.00 to $37.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Mizuho boosted their price objective on Allegro MicroSystems from $37.00 to $40.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Zacks Research raised Allegro MicroSystems to a "hold" rating in a report on Monday, August 11th. Wall Street Zen raised Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. Finally, UBS Group upped their price target on Allegro MicroSystems from $35.00 to $42.00 and gave the company a "buy" rating in a research note on Monday, July 7th. Eight investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Allegro MicroSystems currently has an average rating of "Moderate Buy" and a consensus target price of $36.78.

Allegro MicroSystems Price Performance

NASDAQ ALGM traded down $0.65 on Friday, hitting $30.27. 964,842 shares of the company were exchanged, compared to its average volume of 2,683,837. The company has a market cap of $5.60 billion, a P/E ratio of -81.38 and a beta of 1.74. Allegro MicroSystems has a 1-year low of $16.38 and a 1-year high of $38.45. The company has a current ratio of 3.70, a quick ratio of 2.26 and a debt-to-equity ratio of 0.34. The firm has a 50 day moving average of $32.92 and a two-hundred day moving average of $27.85.

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

Insider Activity at Allegro MicroSystems

In other Allegro MicroSystems news, CAO Roald Graham Webster sold 8,266 shares of Allegro MicroSystems stock in a transaction 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 transaction, the chief accounting officer directly owned 17,300 shares of the company's stock, valued at $567,613. The trade was a 32.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. UMB Bank n.a. boosted its position in shares of Allegro MicroSystems by 29.2% during the 2nd quarter. UMB Bank n.a. now owns 1,835 shares of the company's stock worth $63,000 after acquiring an additional 415 shares in the last quarter. Mackenzie Financial Corp lifted its holdings in Allegro MicroSystems by 2.8% in the fourth quarter. Mackenzie Financial Corp now owns 18,192 shares of the company's stock valued at $398,000 after buying an additional 491 shares during the period. Fifth Third Bancorp lifted its holdings in Allegro MicroSystems by 63.7% in the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock valued at $33,000 after buying an additional 504 shares during the period. Retirement Systems of Alabama increased its stake in Allegro MicroSystems by 0.3% in the second quarter. Retirement Systems of Alabama now owns 200,781 shares of the company's stock valued at $6,865,000 after purchasing an additional 668 shares in the last quarter. Finally, Teacher Retirement System of Texas increased its position in shares of Allegro MicroSystems by 4.0% during the second quarter. Teacher Retirement System of Texas now owns 19,573 shares of the company's stock worth $669,000 after acquiring an additional 745 shares in the last quarter. 56.45% of the stock is owned by 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.