Allegro MicroSystems (NASDAQ:ALGM) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays has raised its price target for Allegro MicroSystems from $23.00 to $30.00, maintaining an "overweight" rating, despite indicating a potential downside from its previous close.
• Several other analysts have similarly boosted their price targets, with Bank of America increasing theirs to $45.00 and Wells Fargo raising it to $42.00, reflecting strong confidence in the stock.
• Allegro MicroSystems reported a 21.9% year-over-year revenue increase, reaching $203.41 million for the quarter, while EPS met analysts' expectations at $0.09.

Allegro MicroSystems (NASDAQ:ALGM - Free Report) had its price target hoisted by Barclays from $23.00 to $30.00 in a report released on Friday morning,Benzinga reports. Barclays currently has an overweight rating on the stock.

ALGM has been the topic of several other reports. Morgan Stanley raised their target price on Allegro MicroSystems from $23.00 to $25.00 and gave the company an "equal weight" rating in a report on Monday, June 9th. Wells Fargo & Company restated an "overweight" rating and set a $42.00 price objective (up previously from $33.00) on shares of Allegro MicroSystems in a research note on Wednesday, July 16th. Mizuho raised their price objective on Allegro MicroSystems from $31.00 to $37.00 and gave the company an "outperform" rating in a research note on Tuesday, July 8th. Bank of America raised their price objective on Allegro MicroSystems from $38.00 to $45.00 and gave the company an "action list buy" rating in a research note on Thursday, July 10th. Finally, Needham & Company LLC raised their price objective on Allegro MicroSystems from $25.00 to $37.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. One equities research analyst has rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Allegro MicroSystems has a consensus rating of "Buy" and a consensus price target of $37.56.

Allegro MicroSystems Trading Down 0.8%

Shares of Allegro MicroSystems stock traded down $0.24 during trading hours on Friday, reaching $31.23. The stock had a trading volume of 953,900 shares, compared to its average volume of 2,906,737. The firm has a 50 day simple moving average of $32.39 and a two-hundred day simple moving average of $26.75. The firm has a market capitalization of $5.78 billion, a price-to-earnings ratio of -84.40 and a beta of 1.74. The company has a current ratio of 3.70, a quick ratio of 2.26 and a debt-to-equity ratio of 0.34. Allegro MicroSystems has a 1 year low of $16.38 and a 1 year 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 EPS for the quarter, meeting the consensus estimate of $0.09. The business had revenue of $203.41 million for 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 company's revenue was up 21.9% on a year-over-year basis. During the same period last year, the business posted $0.03 EPS. As a group, equities research analysts anticipate that Allegro MicroSystems will post 0.01 earnings per share for the current year.

Hedge Funds Weigh In On Allegro MicroSystems

Hedge funds and other institutional investors have recently modified their holdings of the company. Fifth Third Bancorp boosted its holdings in shares of Allegro MicroSystems by 63.7% during the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock valued at $33,000 after acquiring an additional 504 shares during the period. UMB Bank n.a. boosted its holdings in shares of Allegro MicroSystems by 68.6% during the first quarter. UMB Bank n.a. now owns 1,420 shares of the company's stock valued at $36,000 after acquiring an additional 578 shares during the period. TD Waterhouse Canada Inc. acquired a new position in shares of Allegro MicroSystems during the fourth quarter valued at $40,000. Nisa Investment Advisors LLC boosted its holdings in shares of Allegro MicroSystems by 158.8% during the second quarter. Nisa Investment Advisors LLC now owns 2,210 shares of the company's stock valued at $76,000 after acquiring an additional 1,356 shares during the period. Finally, DekaBank Deutsche Girozentrale acquired a new position in shares of Allegro MicroSystems during the first quarter valued at $71,000. Institutional investors and hedge funds own 56.45% of the company's stock.

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.