Allegro MicroSystems (NASDAQ:ALGM) Sets New 52-Week High - Should You Buy?

Key Points

• Allegro MicroSystems (NASDAQ: ALGM) hit a new 52-week high, trading as high as $62.48 after closing previously at $57.89, and the stock was up about 14.8% intraday.
• Several analysts turned more positive on the company, with firms including Needham, UBS, Evercore, and Jefferies raising targets or reaffirming bullish ratings. The consensus view remains Moderate Buy with an average price target of $55.60.
• The company beat quarterly expectations, reporting $0.17 EPS on $243.19 million in revenue, while revenue rose 26.1% year over year. However, insiders have been selling shares recently, even as institutional ownership remains high at 56.45%.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $62.48 and last traded at $63.0020, with a volume of 675287 shares trading hands. The stock had previously closed at $57.89.

Analysts Set New Price Targets

A number of research firms recently commented on ALGM. Needham & Company LLC boosted their price target on Allegro MicroSystems from $45.00 to $55.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. UBS Group upped their target price on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Evercore reiterated an "outperform" rating and issued a $53.00 price target on shares of Allegro MicroSystems in a report on Friday, May 8th. Jefferies Financial Group reissued a "buy" rating and set a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday, May 7th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Allegro MicroSystems presently has an average rating of "Moderate Buy" and a consensus target price of $55.60.

Allegro MicroSystems Stock Up 14.8%

The company has a current ratio of 3.45, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. The company has a market cap of $12.38 billion, a PE ratio of -737.58 and a beta of 1.98. The company's 50 day moving average is $48.31 and its 200 day moving average is $38.51.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.16 by $0.01. The company had revenue of $243.19 million for the quarter, compared to the consensus estimate of $235.94 million. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.Allegro MicroSystems's quarterly revenue was up 26.1% on a year-over-year basis. During the same period last year, the business posted $0.06 EPS. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. As a group, analysts predict that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Richard Madormo sold 5,000 shares of Allegro MicroSystems stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total transaction of $263,600.00. Following the transaction, the senior vice president directly owned 69,687 shares of the company's stock, valued at $3,673,898.64. This trade represents a 6.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Susan D. Lynch sold 16,711 shares of the stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total value of $759,682.06. Following the sale, the director directly owned 12,805 shares in the company, valued at $582,115.30. This trade represents a 56.62% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 68,607 shares of company stock worth $3,213,714. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Allegro MicroSystems

A number of hedge funds have recently made changes to their positions in the stock. Capital Research Global Investors grew its stake in Allegro MicroSystems by 5.8% in the third quarter. Capital Research Global Investors now owns 16,824,722 shares of the company's stock valued at $491,282,000 after purchasing an additional 920,365 shares during the last quarter. Invesco Ltd. lifted its position in shares of Allegro MicroSystems by 44.0% during 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 last quarter. State Street Corp boosted its holdings in shares of Allegro MicroSystems by 1.5% in the 4th quarter. State Street Corp now owns 5,359,488 shares of the company's stock valued at $141,383,000 after buying an additional 78,203 shares in the last quarter. Adage Capital Partners GP L.L.C. grew its position in shares of Allegro MicroSystems by 77.8% in 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 buying an additional 1,227,317 shares during the last quarter. Finally, Alliancebernstein L.P. grew its position 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 worth $94,360,000 after buying an additional 1,806,183 shares during the last quarter. 56.45% of the stock is currently 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.

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.