Allegro MicroSystems (NASDAQ:ALGM) Upgraded by Wall Street Zen to Buy Rating

Key Points

• Wall Street Zen upgraded Allegro MicroSystems from “hold” to “buy,” adding to a broadly positive analyst backdrop. The stock now has 10 Buy ratings, one Hold, and one Sell, with a consensus price target of $51.80.
• Allegro reported strong quarterly results, posting $0.17 EPS versus the $0.16 estimate and revenue of $243.19 million, up 26.1% year over year. The company also provided Q1 2027 EPS guidance of 0.190-0.230.
• Shares were near their 12-month high, opening at $59.00 versus a 52-week range of $22.41 to $59.56. Meanwhile, insider selling has been notable, with executives and directors selling 68,607 shares over the last three months.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Sunday.

A number of other research analysts have also recently weighed in on ALGM. 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. Evercore reiterated an "outperform" rating and set a $53.00 target price on shares of Allegro MicroSystems in a report on Friday, May 8th. Mizuho increased their target price on shares of Allegro MicroSystems from $44.00 to $54.00 and gave the stock an "outperform" rating in a report on Friday, May 8th. Weiss Ratings reissued a "sell (d-)" rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. Finally, Needham & Company LLC boosted their price target on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Allegro MicroSystems currently has an average rating of "Moderate Buy" and a consensus target price of $51.80.

Allegro MicroSystems Price Performance

ALGM stock opened at $59.00 on Friday. The business's fifty day moving average price is $46.26 and its 200 day moving average price is $37.38. Allegro MicroSystems has a 12-month low of $22.41 and a 12-month high of $59.56. 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 capitalization of $10.99 billion, a PE ratio of -655.48 and a beta of 1.98.

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

Insider Transactions at Allegro MicroSystems

In related news, CAO Roald Graham Webster sold 5,217 shares of Allegro MicroSystems 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 sale, the chief accounting officer directly owned 13,106 shares in the company, valued at $588,197.28. This trade represents a 28.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Susan D. Lynch sold 16,711 shares of the business's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total transaction of $759,682.06. Following the completion of the sale, the director directly owned 12,805 shares of the company's stock, valued at approximately $582,115.30. This trade represents a 56.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 68,607 shares of company stock worth $3,213,714. Insiders own 0.40% of the company's stock.

Institutional Trading of Allegro MicroSystems

Large investors have recently made changes to their positions in the company. Parallel Advisors LLC increased its position in Allegro MicroSystems by 42.8% during the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock worth $32,000 after buying an additional 302 shares during the period. PNC Financial Services Group Inc. grew its position in shares of Allegro MicroSystems by 2.7% during the third quarter. PNC Financial Services Group Inc. now owns 14,713 shares of the company's stock worth $430,000 after acquiring an additional 381 shares during the last quarter. Vanguard Personalized Indexing Management LLC grew its position in shares of Allegro MicroSystems by 3.0% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company's stock worth $376,000 after acquiring an additional 419 shares during the last quarter. State of Michigan Retirement System increased its holdings in shares of Allegro MicroSystems by 2.0% in the 1st quarter. State of Michigan Retirement System now owns 29,900 shares of the company's stock valued at $943,000 after acquiring an additional 600 shares during the period. Finally, Caitong International Asset Management Co. Ltd raised its position in Allegro MicroSystems by 85.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company's stock valued at $38,000 after purchasing an additional 669 shares during the last quarter. 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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