Mizuho Forecasts Strong Price Appreciation for Allegro MicroSystems (NASDAQ:ALGM) Stock

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 upped by investment analysts at Mizuho from $37.00 to $40.00 in a research note issued on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Mizuho's price objective would indicate a potential upside of 28.94% from the stock's current price.

Other equities analysts have also recently issued reports about the company. UBS Group lifted their price target on Allegro MicroSystems from $35.00 to $42.00 and gave the company a "buy" rating in a research report on Monday, July 7th. TD Cowen reduced their price objective on Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating for the company in a research note on Friday. 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, July 31st. Barclays lifted their price objective on Allegro MicroSystems from $23.00 to $30.00 and gave the company an "overweight" rating in a research report on Friday. Finally, Bank of America lifted their price objective 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. One analyst has rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Allegro MicroSystems currently has a consensus rating of "Buy" and a consensus price target of $37.56.

Allegro MicroSystems Stock Down 1.4%

Shares of ALGM stock traded down $0.45 during trading hours on Friday, reaching $31.02. The company had a trading volume of 309,596 shares, compared to its average volume of 2,903,208. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.26 and a current ratio of 3.70. Allegro MicroSystems has a twelve month low of $16.38 and a twelve month high of $38.45. The company has a market capitalization of $5.74 billion, a P/E ratio of -83.96 and a beta of 1.74. The stock's fifty day simple moving average is $32.39 and its 200 day simple moving average is $26.75.

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 analysts' consensus estimates of $0.09. Allegro MicroSystems had a positive return on equity of 2.09% and a negative net margin of 9.00%. The company had revenue of $203.41 million for the quarter, compared to the consensus estimate of $197.82 million. During the same quarter last year, the business posted $0.03 EPS. Allegro MicroSystems's quarterly revenue was up 21.9% compared to the same quarter last year. As a group, sell-side analysts expect that Allegro MicroSystems will post 0.01 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Allegro MicroSystems

Several hedge funds have recently bought and sold shares of the stock. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Allegro MicroSystems in the fourth quarter valued at approximately $35,433,000. SG Americas Securities LLC bought a new position in Allegro MicroSystems in the first quarter valued at approximately $805,000. Mirae Asset Global Investments Co. Ltd. grew its stake in shares of Allegro MicroSystems by 18.4% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 26,883 shares of the company's stock worth $668,000 after buying an additional 4,185 shares during the last quarter. Fifth Third Bancorp lifted its holdings in Allegro MicroSystems by 63.7% in the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock valued at $33,000 after buying an additional 504 shares during the period. Finally, Frontier Capital Management Co. LLC acquired a new position in Allegro MicroSystems in the fourth quarter valued at $1,994,000. 56.45% of the stock is currently owned by institutional investors and hedge funds.

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.