Allegro MicroSystems (NASDAQ:ALGM) Stock Price Up 9.5% - Should You Buy?

Key Points

• Allegro MicroSystems shares jumped 9.5% on Thursday, trading as high as $58.45 after closing at $53.98 the previous day.
• Analyst sentiment remains broadly positive, with 10 Buy ratings versus one Hold and one Sell; the consensus price target is $51.80, while recent firms including Mizuho, Jefferies, Barclays, and UBS raised targets or reiterated bullish views.
• The company’s latest results beat expectations, with Q4 revenue of $243.19 million and EPS of $0.17 topping estimates, alongside 26.1% year-over-year revenue growth; however, insiders have sold shares recently, including the CEO and CAO.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) shares rose 9.5% during trading on Thursday . The company traded as high as $58.45 and last traded at $59.0890. Approximately 518,212 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 2,417,951 shares. The stock had previously closed at $53.98.

Wall Street Analysts Forecast Growth

ALGM has been the topic of a number of analyst reports. Mizuho boosted their price target on Allegro MicroSystems from $44.00 to $54.00 and gave the stock an "outperform" rating in a research report on Friday, May 8th. Jefferies Financial Group restated a "buy" rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday, May 7th. Wall Street Zen lowered shares of Allegro MicroSystems from a "buy" rating to a "hold" rating in a report on Saturday, June 13th. Barclays boosted their price objective on shares of Allegro MicroSystems from $46.00 to $48.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Finally, UBS Group boosted their price objective on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $51.80.

Allegro MicroSystems Stock Performance

The firm has a market capitalization of $10.83 billion, a PE ratio of -643.28 and a beta of 1.98. The company has a current ratio of 3.45, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. The business's 50 day simple moving average is $45.28 and its two-hundred day simple moving average is $37.00.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.16 by $0.01. The business had revenue of $243.19 million during the quarter, compared to analyst estimates of $235.94 million. Allegro MicroSystems had a negative net margin of 1.67% and a positive return on equity of 6.09%. The company's quarterly revenue was up 26.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.06 EPS. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. Research analysts expect that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current fiscal year.

Insider Buying and Selling at Allegro MicroSystems

In other Allegro MicroSystems news, CAO Roald Graham Webster sold 5,217 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the completion of the sale, the chief accounting officer directly owned 13,106 shares in the company, valued at approximately $588,197.28. The trade was a 28.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael Doogue sold 30,089 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $47.23, for a total transaction of $1,421,103.47. Following the sale, the chief executive officer owned 252,797 shares of the company's stock, valued at approximately $11,939,602.31. This represents a 10.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 68,607 shares of company stock worth $3,213,714. 0.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Allegro MicroSystems

A number of hedge funds have recently added to or reduced their stakes in ALGM. Bank of America Corp DE grew its position in shares of Allegro MicroSystems by 136.6% during the 3rd quarter. Bank of America Corp DE now owns 952,679 shares of the company's stock valued at $27,818,000 after acquiring an additional 3,556,410 shares during the period. Invesco Ltd. grew its position in shares of Allegro MicroSystems by 44.0% during the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock valued at $201,835,000 after acquiring an additional 2,338,624 shares during the period. Alliancebernstein L.P. grew its position in shares of Allegro MicroSystems by 189.4% during the 2nd quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock valued at $94,360,000 after acquiring an additional 1,806,183 shares during the period. Norges Bank bought a new stake in shares of Allegro MicroSystems during the 4th quarter valued at $38,457,000. Finally, Adage Capital Partners GP L.L.C. grew its position in shares of Allegro MicroSystems by 77.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock valued at $73,968,000 after acquiring an additional 1,227,317 shares during the period. 56.45% of the stock is currently owned by hedge funds and other institutional investors.

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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