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 - Get Free Report) had its price target boosted by research analysts at Barclays from $23.00 to $30.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Barclays's target price indicates a potential downside of 4.49% from the company's previous close.

A number of other equities research analysts have also issued reports on the company. Bank of America increased their price target on Allegro MicroSystems from $38.00 to $45.00 and gave the company an "action list buy" rating in a research report on Thursday, July 10th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $42.00 price target (up previously from $33.00) on shares of Allegro MicroSystems in a research report on Wednesday, July 16th. Mizuho raised their target price on Allegro MicroSystems from $31.00 to $37.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 8th. Needham & Company LLC raised their target price on Allegro MicroSystems from $25.00 to $37.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Morgan Stanley raised their target price on Allegro MicroSystems from $23.00 to $25.00 and gave the stock an "equal weight" rating in a research report on Monday, June 9th. One research analyst has rated the stock with a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $36.11.

Allegro MicroSystems Stock Performance

Shares of Allegro MicroSystems stock opened at $31.41 on Friday. The business has a 50-day moving average of $32.15 and a 200 day moving average of $26.60. Allegro MicroSystems has a 12 month low of $16.38 and a 12 month high of $38.45. The stock has a market capitalization of $5.81 billion, a price-to-earnings ratio of -80.54 and a beta of 1.75. The company has a debt-to-equity ratio of 0.37, a current ratio of 4.30 and a quick ratio of 2.66.

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 analysts' consensus estimates of $0.09. Allegro MicroSystems had a positive return on equity of 1.04% and a negative net margin of 10.07%. The company had revenue of $203.41 million during the quarter, compared to analysts' expectations of $197.82 million. During the same period last year, the business posted $0.03 EPS. Allegro MicroSystems's revenue for the quarter was up 21.9% on a year-over-year basis. As a group, sell-side analysts forecast that Allegro MicroSystems will post 0.01 earnings per share for the current year.

Institutional Inflows and Outflows

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

About Allegro MicroSystems

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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