Allegro MicroSystems (NASDAQ:ALGM) Reaches New 12-Month High - Should You Buy?

Key Points

• Allegro MicroSystems hit a new 52-week high (intraday $45.39, last $44.42) on heavy volume and was trading up about 6.4% during the session.
• Analysts are largely bullish—ten Buys, one Hold and one Sell produce a consensus Moderate Buy with an average target of $45.00 and recent price-target upgrades from Needham, UBS and Jefferies.
• The company beat quarterly estimates (EPS $0.15 vs $0.14; revenue $229.2M vs $220.8M, +28.9% YoY) but still posts a negative net margin and negative P/E, with a market cap of roughly $8.33 billion and institutional ownership at about 56.45%.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The stock traded as high as $45.39 and last traded at $44.4210, with a volume of 323208 shares trading hands. The stock had previously closed at $42.27.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Needham & Company LLC boosted their target price on Allegro MicroSystems from $41.00 to $45.00 and gave the stock a "buy" rating in a research report on Thursday, February 19th. UBS Group lifted their price objective on Allegro MicroSystems from $40.00 to $44.00 and gave the company a "buy" rating in a report on Friday, January 30th. Wall Street Zen raised Allegro MicroSystems from a "hold" rating to a "buy" rating in a research report on Sunday, January 18th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $45.00 price objective on shares of Allegro MicroSystems in a research report on Thursday, February 19th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Allegro MicroSystems in a research report on Monday, December 29th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Allegro MicroSystems currently has a consensus rating of "Moderate Buy" and an average target price of $45.00.

Allegro MicroSystems Trading Up 6.4%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.39 and a current ratio of 3.65. The firm has a market cap of $8.33 billion, a price-to-earnings ratio of -563.31 and a beta of 1.70. The business has a fifty day simple moving average of $35.34 and a 200-day simple moving average of $31.64.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The company reported $0.15 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.01. The business had revenue of $229.21 million during the quarter, compared to the consensus estimate of $220.78 million. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.Allegro MicroSystems's quarterly revenue was up 28.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.07 earnings per share. As a group, equities analysts forecast that Allegro MicroSystems, Inc. will post 0.27 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Allegro MicroSystems

Hedge funds have recently added to or reduced their stakes in the stock. Bank of America Corp DE raised its holdings in shares of Allegro MicroSystems by 136.6% in the third quarter. Bank of America Corp DE now owns 952,679 shares of the company's stock valued at $27,818,000 after purchasing an additional 3,556,410 shares during the last quarter. Invesco Ltd. raised its stake in shares of Allegro MicroSystems by 44.0% in the fourth quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock valued at $201,835,000 after buying an additional 2,338,624 shares during the period. Alliancebernstein L.P. boosted its position in Allegro MicroSystems by 189.4% during the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock worth $94,360,000 after purchasing an additional 1,806,183 shares during the period. Norges Bank purchased a new stake in shares of Allegro MicroSystems during the fourth quarter worth $38,457,000. Finally, Adage Capital Partners GP L.L.C. lifted its holdings in Allegro MicroSystems by 77.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock worth $73,968,000 after purchasing an additional 1,227,317 shares in the last quarter. Institutional investors and hedge funds own 56.45% of the company's stock.

About Allegro MicroSystems

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.