Allegro MicroSystems (NASDAQ:ALGM) Trading 6.9% Higher - Here's Why

Key Points

• Allegro MicroSystems shares rose 6.9% to about $45.41 in Thursday’s trading, although volume was 72% below the stock’s average daily volume.
• Analyst sentiment remains positive, with ten Buy ratings, one Hold and one Sell; the stock has a “Moderate Buy” consensus and an average price target of $53.45.
• The company exceeded quarterly expectations, reporting adjusted earnings of $0.23 per share versus the $0.21 consensus and revenue of $259.24 million, up 27.5% year over year.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s share price rose 6.9% on Thursday . The stock traded as high as $45.67 and last traded at $45.4140. 719,279 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 2,595,618 shares. The stock had previously closed at $42.47.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on ALGM shares. Needham & Company LLC increased their target price on shares of Allegro MicroSystems from $55.00 to $57.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Mizuho reduced their price target on Allegro MicroSystems from $67.00 to $58.00 and set an "outperform" rating on the stock in a research report on Friday, July 31st. Wells Fargo & Company raised their price objective on Allegro MicroSystems from $48.00 to $56.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. Wall Street Zen raised Allegro MicroSystems from a "hold" rating to a "buy" rating in a report on Sunday, August 2nd. Finally, UBS Group increased their target price on Allegro MicroSystems from $52.00 to $55.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Ten analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $53.45.

Allegro MicroSystems Price Performance

The company's 50-day moving average is $50.71 and its 200-day moving average is $43.21. The firm has a market cap of $8.32 billion, a price-to-earnings ratio of 744.87, a price-to-earnings-growth ratio of 1.34 and a beta of 1.94. The company has a current ratio of 3.70, a quick ratio of 2.33 and a debt-to-equity ratio of 0.30.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.02. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%.The firm had revenue of $259.24 million during the quarter, compared to analysts' expectations of $251.44 million. During the same period in the prior year, the company earned $0.09 earnings per share. The company's quarterly revenue was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Equities research analysts predict that Allegro MicroSystems, Inc. will post 0.65 earnings per share for the current year.

Insiders Place Their Bets

In other news, SVP Erin Hagen sold 2,285 shares of Allegro MicroSystems stock in a transaction on Monday, August 10th. The shares were sold at an average price of $44.39, for a total transaction of $101,431.15. Following the transaction, the senior vice president owned 31,052 shares in the company, valued at approximately $1,378,398.28. The trade was a 6.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Roald Graham Webster sold 5,217 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total value of $234,138.96. Following the completion of the sale, the chief accounting officer owned 13,106 shares in the company, valued at $588,197.28. The trade was a 28.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 15,144 shares of company stock worth $708,972. Insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently modified their holdings of ALGM. Sanctuary Advisors LLC bought a new position in Allegro MicroSystems during the second quarter worth $327,000. Meiji Yasuda Asset Management Co Ltd. bought a new stake in Allegro MicroSystems in the second quarter valued at $200,000. Elevation Point Wealth Partners LLC acquired a new position in shares of Allegro MicroSystems during the second quarter valued at about $441,000. Commerce Bank bought a new position in shares of Allegro MicroSystems during the 2nd quarter worth about $1,089,000. Finally, Quantbot Technologies LP acquired a new stake in shares of Allegro MicroSystems in the 2nd quarter valued at about $89,000. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems Company Profile

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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