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

Key Points

• Mizuho analyst has raised Allegro MicroSystems' price target from $37.00 to $40.00, indicating a potential upside of 28.30% based on the stock’s recent closing price.
• The average rating for Allegro MicroSystems among analysts is currently "Buy", with a consensus target price of $37.56.
• The company's stock is traded at $31.18, showing a significant increase in quarterly revenue by 21.9% year-over-year.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its price objective lifted by equities researchers at Mizuho from $37.00 to $40.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Mizuho's price target would suggest a potential upside of 28.30% from the stock's previous close.

Other equities analysts also recently issued research reports about the stock. TD Cowen lowered their target price on shares of Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating on the stock in a report on Friday. Barclays boosted their target price on shares of Allegro MicroSystems from $23.00 to $30.00 and gave the stock an "overweight" rating in a report on Friday. Bank of America boosted their target price on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the stock an "action list buy" rating in a report on Thursday, July 10th. Needham & Company LLC upped their price target on shares of Allegro MicroSystems from $25.00 to $37.00 and gave the company a "buy" rating in a research note on Thursday. Finally, Morgan Stanley decreased their price target on shares of Allegro MicroSystems from $38.00 to $35.00 and set an "equal weight" rating on the stock in a research note on Friday. One investment analyst has rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $37.56.

Allegro MicroSystems Price Performance

NASDAQ:ALGM traded down $0.23 during trading hours on Friday, hitting $31.18. 783,850 shares of the stock traded hands, compared to its average volume of 2,923,236. Allegro MicroSystems has a 1 year low of $16.38 and a 1 year high of $38.45. The stock has a 50 day moving average price of $32.15 and a 200 day moving average price of $26.60. The company has a quick ratio of 2.66, a current ratio of 4.30 and a debt-to-equity ratio of 0.37. The company has a market cap of $5.77 billion, a price-to-earnings ratio of -79.84 and a beta of 1.75.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.09 EPS for the quarter, hitting the consensus estimate of $0.09. Allegro MicroSystems had a negative net margin of 10.07% and a positive return on equity of 1.04%. The firm had revenue of $203.41 million for the quarter, compared to the consensus estimate of $197.82 million. During the same quarter in the previous year, the firm earned $0.03 earnings per share. The company's quarterly revenue was up 21.9% compared to the same quarter last year. Sell-side analysts forecast that Allegro MicroSystems will post 0.01 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Capital Research Global Investors increased its position in Allegro MicroSystems by 6.5% during the fourth quarter. Capital Research Global Investors now owns 5,768,208 shares of the company's stock valued at $126,093,000 after acquiring an additional 353,776 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Allegro MicroSystems by 131.5% in the first quarter. Invesco Ltd. now owns 4,835,641 shares of the company's stock worth $121,520,000 after purchasing an additional 2,746,880 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Allegro MicroSystems by 30.5% in the fourth quarter. Wellington Management Group LLP now owns 3,993,682 shares of the company's stock worth $87,302,000 after purchasing an additional 934,048 shares during the last quarter. Adage Capital Partners GP L.L.C. grew its holdings in shares of Allegro MicroSystems by 50.1% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 2,733,560 shares of the company's stock worth $59,756,000 after purchasing an additional 911,993 shares during the last quarter. Finally, Principal Financial Group Inc. grew its holdings in shares of Allegro MicroSystems by 6.4% in the first quarter. Principal Financial Group Inc. now owns 2,416,102 shares of the company's stock worth $60,717,000 after purchasing an additional 144,824 shares during the last quarter. Institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.