Allegro MicroSystems (NASDAQ:ALGM) Rating Increased to Strong-Buy at Benchmark

Key Points

• Benchmark upgraded Allegro MicroSystems to “strong buy,” while the broader analyst consensus remains “moderate buy” with an average price target of $53.45.
• Allegro’s latest quarterly results exceeded expectations: adjusted EPS was $0.23 versus $0.21 expected, revenue reached $259.24 million, and sales increased 27.5% year over year.
• Shares opened at $44.39, below the consensus price target, but the stock carries a very high P/E ratio of 739.96; insiders have sold about $709,000 worth of shares over the past 90 days.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) was upgraded by equities researchers at Benchmark to a "strong-buy" rating in a note issued to investors on Wednesday,Zacks.com reports.

ALGM has been the subject of several other reports. Morgan Stanley upped their target price on Allegro MicroSystems from $51.00 to $52.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Mizuho decreased their price target on Allegro MicroSystems from $67.00 to $58.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. TD Cowen lowered their price target on Allegro MicroSystems from $66.00 to $48.00 and set a "buy" rating for the company in a report on Friday, July 31st. Barclays downgraded shares of Allegro MicroSystems from an "overweight" rating to an "equal weight" rating and set a $48.00 price objective for the company. in a research note on Monday, July 20th. Finally, Weiss Ratings upgraded shares of Allegro MicroSystems from a "sell (d-)" rating to a "sell (d+)" rating in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $53.45.

Allegro MicroSystems Stock Performance

NASDAQ:ALGM opened at $44.39 on Wednesday. The firm has a 50 day simple moving average of $50.48 and a 200-day simple moving average of $43.29. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.33. The firm has a market cap of $8.27 billion, a PE ratio of 739.96, a P/E/G ratio of 1.39 and a beta of 1.94. Allegro MicroSystems has a 1-year low of $22.41 and a 1-year high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.02. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%.The company had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. During the same period in the previous year, the firm posted $0.09 EPS. Allegro MicroSystems's revenue was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. On average, equities analysts expect that Allegro MicroSystems will post 0.65 EPS for the current year.

Insider Activity

In other news, SVP Ian Kent sold 2,642 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $41.56, for a total transaction of $109,801.52. Following the transaction, the senior vice president directly owned 25,392 shares of the company's stock, valued at approximately $1,055,291.52. The trade was a 9.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Roald Graham Webster sold 5,217 shares of the company's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the completion of the transaction, the chief accounting officer owned 13,106 shares of the company's stock, valued at $588,197.28. This trade represents a 28.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 15,144 shares of company stock worth $708,972. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Rakuten Securities Inc. purchased a new stake in shares of Allegro MicroSystems during the second quarter worth about $31,000. Parallel Advisors LLC lifted its stake in shares of Allegro MicroSystems by 42.8% in the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock worth $32,000 after acquiring an additional 302 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in Allegro MicroSystems in the fourth quarter valued at about $34,000. CIBC Private Wealth Group LLC boosted its holdings in Allegro MicroSystems by 14,844.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company's stock valued at $35,000 after purchasing an additional 1,336 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its stake in Allegro MicroSystems by 85.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company's stock valued at $38,000 after purchasing an additional 669 shares in the last quarter. 56.45% of the stock is owned by hedge funds and other institutional investors.

Allegro MicroSystems Company Profile

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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