Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Up - Time to Buy?

Key Points

• Allegro MicroSystems shares gapped up ahead of trading, opening at $54.21 after closing at $50.85, and were last trading up about 2.2%. The move came alongside above-average interest in the stock.
• Analyst sentiment remains broadly positive, with several firms reiterating or raising buy ratings and a consensus price target of about $55.20. TD Cowen did trim its target from $70 to $66, but the overall rating is still Moderate Buy.
• The company recently beat earnings and revenue expectations, reporting $0.17 EPS versus $0.16 expected and $243.19 million in revenue, up 26.1% year over year. However, insider selling has been notable, including recent sales by the CEO and an SVP.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $50.85, but opened at $54.21. Allegro MicroSystems shares last traded at $51.6870, with a volume of 116,786 shares.

Analyst Ratings Changes

Several research firms have recently issued reports on ALGM. TD Cowen cut their price objective on shares of Allegro MicroSystems from $70.00 to $66.00 and set a "buy" rating on the stock in a report on Monday. UBS Group lifted their target price on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Barclays boosted their target price on shares of Allegro MicroSystems from $46.00 to $48.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Needham & Company LLC upped their price target on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $62.00 price target on shares of Allegro MicroSystems in a report on Thursday, May 7th. Ten equities research 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. According to MarketBeat.com, Allegro MicroSystems presently has an average rating of "Moderate Buy" and a consensus target price of $55.20.

Allegro MicroSystems Trading Up 2.2%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.21 and a current ratio of 3.45. The company has a 50 day simple moving average of $51.62 and a two-hundred day simple moving average of $40.86. The firm has a market cap of $9.68 billion, a PE ratio of -577.34 and a beta of 1.90.

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

Insider Buying and Selling

In other Allegro MicroSystems news, CEO Michael Doogue sold 30,089 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $47.23, for a total transaction of $1,421,103.47. Following the completion of the transaction, the chief executive officer directly owned 252,797 shares of the company's stock, valued at approximately $11,939,602.31. This trade represents a 10.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Sharon Briansky sold 8,948 shares of Allegro MicroSystems stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $47.54, for a total transaction of $425,387.92. Following the sale, the senior vice president owned 75,232 shares of the company's stock, valued at approximately $3,576,529.28. The trade was a 10.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 68,607 shares of company stock worth $3,213,714 in the last quarter. 0.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Allegro MicroSystems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC raised its stake in shares of Allegro MicroSystems by 42.8% during the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock valued at $32,000 after buying an additional 302 shares during the last quarter. Vanguard Personalized Indexing Management LLC grew its holdings in Allegro MicroSystems by 3.0% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company's stock worth $376,000 after acquiring an additional 419 shares during the period. State of Michigan Retirement System raised its position in Allegro MicroSystems by 2.0% during the first quarter. State of Michigan Retirement System now owns 29,900 shares of the company's stock valued at $943,000 after acquiring an additional 600 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in 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 acquiring an additional 669 shares during the period. Finally, Oregon Public Employees Retirement Fund boosted its position in Allegro MicroSystems by 2.8% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 25,437 shares of the company's stock worth $802,000 after purchasing an additional 700 shares in the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

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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