Allegro MicroSystems (NASDAQ:ALGM) Receives Sell (D) Rating from Weiss Ratings

Key Points

• Weiss Ratings has reissued a "Sell (D)" rating for Allegro MicroSystems (NASDAQ: ALGM) based on a recent analysis, indicating cautious sentiment towards the company's stock.
• Morgan Stanley has lowered its target price for Allegro MicroSystems from $38.00 to $35.00, while Barclays has raised its price objective from $23.00 to $30.00, showcasing mixed analyst perspectives.
• Allegro MicroSystems reported earnings of $0.09 per share, matching consensus estimates, alongside a notable year-over-year quarterly revenue increase of 21.9%.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report)'s stock had its "sell (d)" rating reissued by Weiss Ratings in a note issued to investors on Wednesday,Weiss Ratings reports.

Several other research analysts also recently weighed in on ALGM. Morgan Stanley reduced their target price on Allegro MicroSystems from $38.00 to $35.00 and set an "equal weight" rating for the company in a research note on Friday, August 1st. Barclays increased their price objective on Allegro MicroSystems from $23.00 to $30.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Wells Fargo & Company reissued an "overweight" rating and issued a $42.00 price objective (up from $33.00) on shares of Allegro MicroSystems in a research note on Wednesday, July 16th. Bank of America reduced their price objective on Allegro MicroSystems from $45.00 to $38.00 and set a "buy" rating for the company in a research note on Friday, September 5th. Finally, Zacks Research raised Allegro MicroSystems to a "hold" rating in a research note on Monday, August 11th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $36.78.

Allegro MicroSystems Price Performance

Shares of ALGM stock traded up $0.78 during trading hours on Wednesday, hitting $28.28. 3,185,797 shares of the company's stock were exchanged, compared to its average volume of 2,573,979. The company has a quick ratio of 2.26, a current ratio of 3.70 and a debt-to-equity ratio of 0.34. The firm has a market cap of $5.23 billion, a P/E ratio of -76.43 and a beta of 1.72. The firm has a 50 day moving average of $30.60 and a two-hundred day moving average of $28.44. Allegro MicroSystems has a fifty-two week low of $16.38 and a fifty-two week high of $38.45.

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

Insider Buying and Selling

In related 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 transaction of $271,207.46. Following the completion of the transaction, the chief accounting officer directly owned 17,300 shares in the company, valued at $567,613. This trade represents a 32.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Allegro MicroSystems

A number of hedge funds and other institutional investors have recently bought and sold shares of ALGM. Invesco Ltd. boosted its holdings in Allegro MicroSystems by 131.5% during the 1st quarter. Invesco Ltd. now owns 4,835,641 shares of the company's stock valued at $121,520,000 after acquiring an additional 2,746,880 shares during the period. Alliancebernstein L.P. boosted its stake in shares of Allegro MicroSystems by 189.4% in the 2nd quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock valued at $94,360,000 after buying an additional 1,806,183 shares during the period. Kodai Capital Management LP purchased a new position in shares of Allegro MicroSystems in the 1st quarter valued at about $41,610,000. Norges Bank purchased a new position in shares of Allegro MicroSystems in the 2nd quarter valued at about $48,138,000. Finally, Segall Bryant & Hamill LLC purchased a new position in shares of Allegro MicroSystems in the 1st quarter valued at about $32,959,000. 56.45% of the stock is currently owned by hedge funds and other institutional investors.

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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