Allegro MicroSystems (NASDAQ:ALGM) Stock Price Up 9.2% - Time to Buy?

Key Points

• Allegro MicroSystems stock jumped 9.2% on Monday, trading as high as $59.46 and closing near $60.61, well above its prior close of $55.49.
• Wall Street sentiment is mostly positive: several firms raised price targets, including TD Cowen to $70 and Mizuho to $67, while the consensus rating remains Moderate Buy with an average target of $55.60.
• The company’s latest earnings beat expectations, with Q1 revenue of $243.19 million and EPS of $0.17, both topping estimates and showing 26.1% year-over-year revenue growth.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s stock price was up 9.2% during trading on Monday . The stock traded as high as $59.46 and last traded at $60.6120. 218,132 shares changed hands during trading, a decline of 92% from the average session volume of 2,618,712 shares. The stock had previously closed at $55.49.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ALGM. Needham & Company LLC lifted their price objective on Allegro MicroSystems from $45.00 to $55.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. TD Cowen increased their target price on shares of Allegro MicroSystems from $55.00 to $70.00 and gave the stock a "buy" rating in a research report on Monday, June 22nd. Weiss Ratings restated a "sell (d-)" rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Evercore reaffirmed an "outperform" rating and set a $53.00 price target on shares of Allegro MicroSystems in a research report on Friday, May 8th. Finally, Mizuho boosted their price objective on shares of Allegro MicroSystems from $54.00 to $67.00 and gave the stock an "outperform" rating in a research note on Monday, June 29th. Ten equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $55.60.

Allegro MicroSystems Trading Up 9.7%

The firm has a fifty day moving average of $50.46 and a 200-day moving average of $39.70. 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 stock has a market capitalization of $11.34 billion, a price-to-earnings ratio of -674.41 and a beta of 1.90.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.17 EPS for the quarter, topping 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 company had revenue of $243.19 million for the quarter, compared to analysts' expectations of $235.94 million. During the same quarter in the previous year, the firm posted $0.06 earnings per share. The firm's quarterly 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. As a group, equities analysts predict that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current fiscal year.

Insider Buying and Selling at Allegro MicroSystems

In related news, CAO Roald Graham Webster sold 5,217 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $44.88, for a total transaction of $234,138.96. Following the transaction, the chief accounting officer directly owned 13,106 shares of the company's stock, valued at approximately $588,197.28. The trade was a 28.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Susan D. Lynch sold 16,711 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $45.46, for a total value of $759,682.06. Following the completion of the transaction, the director owned 12,805 shares of the company's stock, valued at approximately $582,115.30. This represents a 56.62% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 68,607 shares of company stock worth $3,213,714. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ALGM. Parallel Advisors LLC grew its position in shares of Allegro MicroSystems by 42.8% in the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock worth $32,000 after acquiring an additional 302 shares in the last quarter. Kestra Advisory Services LLC bought a new position in Allegro MicroSystems during the fourth quarter worth $34,000. CIBC Private Wealth Group LLC lifted its stake in Allegro MicroSystems by 14,844.4% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company's stock worth $35,000 after purchasing an additional 1,336 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted 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 worth $38,000 after purchasing an additional 669 shares during the period. Finally, Farther Finance Advisors LLC boosted its holdings in Allegro MicroSystems by 815.4% in the fourth quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company's stock worth $57,000 after purchasing an additional 1,908 shares during the period. 56.45% of the stock is owned by institutional investors and hedge funds.

About Allegro MicroSystems

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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