Allegro MicroSystems (NASDAQ:ALGM) Reaches New 12-Month High - Still a Buy?

Key Points

• Allegro MicroSystems hit a new 52-week high near $46 (stock up ~9.5%) and has attracted bullish analyst attention—ten Buys, one Hold and one Sell—with a consensus rating of Moderate Buy and a consensus target of $45 (some firms raising targets to as high as $48).
• In the most recent quarter ALGM beat estimates with $0.15 EPS and $229.2M revenue, a 28.9% year-over-year increase, while sell-side analysts forecast about $0.27 EPS for the current fiscal year.
• The company shows strong liquidity (quick ratio 2.39, current ratio 3.65) and a market cap of ~$8.94B, but profitability remains strained with a negative net margin (-1.57%) and an extremely low P/E (-604.39), indicating ongoing losses.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s stock price hit a new 52-week high on Thursday . The company traded as high as $46.18 and last traded at $46.4840, with a volume of 487758 shares trading hands. The stock had previously closed at $44.07.

Analyst Ratings Changes

ALGM has been the topic of several research analyst reports. Jefferies Financial Group reaffirmed a "buy" rating and set a $45.00 price objective on shares of Allegro MicroSystems in a research note on Thursday, February 19th. Wells Fargo & Company raised their target price on shares of Allegro MicroSystems from $45.00 to $48.00 and gave the stock an "overweight" rating in a report on Wednesday, February 11th. Barclays raised their target price on shares of Allegro MicroSystems from $35.00 to $46.00 and gave the stock an "overweight" 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 note on Sunday, January 18th. Finally, Needham & Company LLC lifted their price target on Allegro MicroSystems from $41.00 to $45.00 and gave the company a "buy" rating in a research note on Thursday, February 19th. Ten investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Allegro MicroSystems has a consensus rating of "Moderate Buy" and a consensus target price of $45.00.

Allegro MicroSystems Stock Up 9.5%

The company has a quick ratio of 2.39, a current ratio of 3.65 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $8.94 billion, a price-to-earnings ratio of -604.39 and a beta of 1.70. The stock's fifty day moving average price is $35.53 and its 200-day moving average price is $32.19.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its earnings results on Thursday, January 29th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.01. The business had revenue of $229.21 million for 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 quarter in the previous year, the business earned $0.07 earnings per share. On average, sell-side analysts predict that Allegro MicroSystems, Inc. will post 0.27 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Allegro MicroSystems

Institutional investors have recently bought and sold shares of the business. Hantz Financial Services Inc. increased its position in Allegro MicroSystems by 86.9% during the third quarter. Hantz Financial Services Inc. now owns 901 shares of the company's stock worth $26,000 after buying an additional 419 shares during the last quarter. Quent Capital LLC acquired a new position in Allegro MicroSystems during the third quarter worth approximately $28,000. Kestra Advisory Services LLC acquired a new position in shares of Allegro MicroSystems in the fourth quarter valued at $34,000. CIBC Private Wealth Group LLC increased its holdings in shares of 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 increased its holdings in shares of Allegro MicroSystems by 85.8% in the fourth 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 during the last quarter. Institutional investors and hedge funds own 56.45% of the company's stock.

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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