Allegro MicroSystems (NASDAQ:ALGM) Trading 8.6% Higher - Should You Buy?

Key Points

• Allegro MicroSystems shares jumped 8.6% in midday trading, reaching as high as $60.28 after closing at $55.42 the previous day. Trading volume was below average at about 1.32 million shares.
• Wall Street sentiment remains mostly positive, with 10 Buy ratings, one Hold, and one Sell. However, the consensus price target of $54.30 is below the stock’s recent trading level.
• The company reported strong quarterly results, including EPS of $0.17 versus the $0.16 estimate and revenue of $243.19 million, up 26.1% year over year. Allegro also issued Q1 2027 guidance of $0.19 to $0.23 EPS.

Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report)'s share price was up 8.6% during mid-day trading on Thursday . The company traded as high as $60.28 and last traded at $60.16. Approximately 1,322,772 shares changed hands during trading, a decline of 46% from the average session volume of 2,461,804 shares. The stock had previously closed at $55.42.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on ALGM. Weiss Ratings reissued 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 objective on shares of Allegro MicroSystems in a report on Friday, May 8th. UBS Group lifted their target price on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the company a "buy" rating in a research note on Friday, May 8th. TD Cowen boosted their target price on Allegro MicroSystems from $55.00 to $70.00 and gave the stock a "buy" rating in a report on Monday. Finally, Barclays raised their price target on Allegro MicroSystems from $46.00 to $48.00 and gave the company an "overweight" rating in a report on Friday, May 8th. 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 company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $54.30.

Allegro MicroSystems Stock Performance

The stock has a 50 day moving average price of $47.46 and a two-hundred day moving average price of $38.08. 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 company has a market cap of $11.11 billion, a price-to-earnings ratio of -663.56 and a beta of 1.98.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced 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 business had revenue of $243.19 million during the quarter, compared to analysts' expectations of $235.94 million. During the same period in the previous year, the firm earned $0.06 earnings per share. The firm's quarterly revenue was up 26.1% compared to the same quarter last year. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. Analysts predict that Allegro MicroSystems, Inc. will post 0.77 EPS for the current year.

Insider Buying and Selling

In other news, SVP Ian Kent sold 2,642 shares of Allegro MicroSystems stock in a transaction on Monday, May 18th. The shares were sold at an average price of $41.56, for a total transaction of $109,801.52. Following the transaction, the senior vice president directly owned 25,392 shares of the company's stock, valued at $1,055,291.52. This trade represents a 9.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 transaction, the chief accounting officer directly owned 13,106 shares of the company's stock, valued at $588,197.28. This trade represents a 28.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.40% of the stock is owned by company insiders.

Institutional Trading of Allegro MicroSystems

A number of large investors have recently bought and sold shares of ALGM. Bank of America Corp DE lifted its position in Allegro MicroSystems by 136.6% in 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 in the last quarter. Invesco Ltd. boosted its position in shares of Allegro MicroSystems by 44.0% during the fourth quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock worth $201,835,000 after buying an additional 2,338,624 shares during the period. Alliancebernstein L.P. boosted its position in shares of Allegro MicroSystems by 189.4% during the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock worth $94,360,000 after buying an additional 1,806,183 shares during the period. Norges Bank bought a new position in shares of Allegro MicroSystems during the fourth quarter worth about $38,457,000. Finally, Adage Capital Partners GP L.L.C. grew its holdings in shares of Allegro MicroSystems by 77.8% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock worth $73,968,000 after buying an additional 1,227,317 shares in the last quarter. 56.45% of the stock is 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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