Needham & Company LLC Boosts Allegro MicroSystems (NASDAQ:ALGM) Price Target to $37.00

Key Points

• Analysts at Needham & Company LLC have raised their price target for Allegro MicroSystems from $25.00 to $37.00, indicating a potential upside of 17.80% from the stock's previous close.
• Multiple firms, including UBS and Bank of America, have also increased their price targets for Allegro MicroSystems, with Bank of America setting a new target at $45.00.
• The company reported earnings of $0.09 per share for the last quarter, meeting analyst expectations, while revenue increased by 21.9% compared to the same quarter last year.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its target price increased by Needham & Company LLC from $25.00 to $37.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's price objective points to a potential upside of 18.48% from the stock's current price.

A number of other research firms have also recently commented on ALGM. Bank of America boosted their target price on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the stock an "action list buy" rating in a research note on Thursday, July 10th. Barclays boosted their price target on shares of Allegro MicroSystems from $22.00 to $23.00 and gave the stock an "overweight" rating in a research report on Friday, May 9th. UBS Group boosted their price target on shares of Allegro MicroSystems from $35.00 to $42.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Morgan Stanley boosted their price target on shares of Allegro MicroSystems from $23.00 to $25.00 and gave the stock an "equal weight" rating in a research report on Monday, June 9th. Finally, Wells Fargo & Company restated an "overweight" rating and set a $42.00 price target (up from $33.00) on shares of Allegro MicroSystems in a research report on Wednesday, July 16th. One research analyst has rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $37.56.

Allegro MicroSystems Stock Performance

Shares of NASDAQ:ALGM traded down $0.24 on Thursday, hitting $31.23. 953,900 shares of the company were exchanged, compared to its average volume of 2,906,737. Allegro MicroSystems has a 1-year low of $16.38 and a 1-year high of $38.45. The stock's 50 day moving average price is $32.39 and its 200 day moving average price is $26.75. 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 market capitalization of $5.78 billion, a P/E ratio of -84.40 and a beta of 1.74.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.09 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.09. 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 during the quarter, compared to the consensus estimate of $197.82 million. During the same period in the previous year, the firm posted $0.03 earnings per share. The firm's quarterly revenue was up 21.9% on a year-over-year basis. Sell-side analysts predict that Allegro MicroSystems will post 0.01 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ALGM. UMB Bank n.a. boosted its stake in Allegro MicroSystems by 29.2% during the second quarter. UMB Bank n.a. now owns 1,835 shares of the company's stock worth $63,000 after buying an additional 415 shares in the last quarter. Mackenzie Financial Corp boosted its stake in Allegro MicroSystems by 2.8% during the fourth quarter. Mackenzie Financial Corp now owns 18,192 shares of the company's stock worth $398,000 after buying an additional 491 shares in the last quarter. Fifth Third Bancorp boosted its stake in Allegro MicroSystems by 63.7% during the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock worth $33,000 after buying an additional 504 shares in the last quarter. Retirement Systems of Alabama boosted its stake in Allegro MicroSystems by 0.3% during the second quarter. Retirement Systems of Alabama now owns 200,781 shares of the company's stock worth $6,865,000 after buying an additional 668 shares in the last quarter. Finally, Teacher Retirement System of Texas boosted its stake in 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 buying an additional 745 shares in the last quarter. Institutional investors and hedge funds own 56.45% of the company's stock.

About Allegro MicroSystems

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.