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

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 objective cut by equities research analysts at Bank of America from $45.00 to $38.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a "buy" rating on the stock. Bank of America's price target suggests a potential upside of 26.25% from the company's previous close.

Other analysts have also issued reports about the company. Needham & Company LLC increased 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. Barclays increased their price objective on Allegro MicroSystems from $23.00 to $30.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Mizuho increased 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. Wall Street Zen upgraded Allegro MicroSystems from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Finally, Zacks Research upgraded Allegro MicroSystems to a "hold" rating in a report on Monday, August 11th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $36.78.

Allegro MicroSystems Stock Performance

Shares of Allegro MicroSystems stock opened at $30.10 on Friday. The stock has a market cap of $5.57 billion, a PE ratio of -81.35 and a beta of 1.74. The business has a fifty day simple moving average of $33.14 and a 200-day simple moving average of $27.78. 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 12 month low of $16.38 and a 12 month high of $38.45.

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

Insider Activity

In other news, CAO Roald Graham Webster sold 8,266 shares of the firm's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $32.81, for a total value of $271,207.46. Following the sale, the chief accounting officer directly owned 17,300 shares of the company's stock, valued at approximately $567,613. This trade represents a 32.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently made changes to their positions in ALGM. Invesco Ltd. grew its position in shares of Allegro MicroSystems by 131.5% in the first quarter. Invesco Ltd. now owns 4,835,641 shares of the company's stock valued at $121,520,000 after purchasing an additional 2,746,880 shares during the last quarter. Alliancebernstein L.P. grew its position in shares of Allegro MicroSystems by 189.4% in the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock valued at $94,360,000 after purchasing an additional 1,806,183 shares during the last quarter. Kodai Capital Management LP acquired a new stake in shares of Allegro MicroSystems in the first quarter valued at about $41,610,000. Norges Bank acquired a new stake in Allegro MicroSystems during the second quarter worth about $48,138,000. Finally, Segall Bryant & Hamill LLC acquired a new stake in Allegro MicroSystems during the first quarter worth about $32,959,000. 56.45% of the stock is owned by institutional investors and hedge funds.

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.

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