Allegro MicroSystems (NASDAQ:ALGM) Rating Increased to Buy at Wall Street Zen

Key Points

• Allegro MicroSystems has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, signaling increased confidence in the company's prospects.
• Several brokerages have raised their price targets for Allegro, with Wells Fargo setting a new target of $42.00, up from $33.00, demonstrating positive market sentiment.
• The company reported a 21.9% increase in revenue year-over-year, achieving $203.41 million for the quarter, which exceeded analysts' expectations.

Wall Street Zen upgraded shares of Allegro MicroSystems (NASDAQ:ALGM - Free Report) from a hold rating to a buy rating in a research report released on Saturday morning.

Several other equities analysts have also recently issued reports on the company. Morgan Stanley lowered their price target on Allegro MicroSystems from $38.00 to $35.00 and set an "equal weight" rating on the stock in a research report on Friday. Barclays lifted their price target on Allegro MicroSystems from $23.00 to $30.00 and gave the company an "overweight" rating in a research report on Friday. Wells Fargo & Company reiterated an "overweight" rating and set a $42.00 price target (up from $33.00) on shares of Allegro MicroSystems in a research report on Wednesday, July 16th. Bank of America lifted their price target on Allegro MicroSystems from $38.00 to $45.00 and gave the company an "action list buy" rating in a research report on Thursday, July 10th. Finally, TD Cowen lowered their price target on Allegro MicroSystems from $42.00 to $37.00 and set a "buy" rating on the stock in a research report on Friday. One investment analyst has rated the stock with a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $37.56.

Allegro MicroSystems Stock Performance

NASDAQ:ALGM traded up $0.21 during mid-day trading on Friday, hitting $31.47. The stock had a trading volume of 1,287,492 shares, compared to its average volume of 2,921,312. Allegro MicroSystems has a 52 week low of $16.38 and a 52 week high of $38.45. The stock has a market capitalization of $5.82 billion, a price-to-earnings ratio of -85.05 and a beta of 1.74. The company has a 50 day simple moving average of $32.27 and a 200-day simple moving average of $26.70. The company has a current ratio of 3.70, a quick ratio of 2.26 and a debt-to-equity ratio of 0.34.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.09 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.09. Allegro MicroSystems had a positive return on equity of 2.09% and a negative net margin of 9.00%. The business had revenue of $203.41 million during the quarter, compared to analyst estimates of $197.82 million. During the same period in the prior year, the company posted $0.03 EPS. The business's revenue for the quarter was up 21.9% compared to the same quarter last year. On average, research analysts expect that Allegro MicroSystems will post 0.01 earnings per share for the current fiscal year.

Institutional Trading of Allegro MicroSystems

Hedge funds have recently modified their holdings of the business. Schonfeld Strategic Advisors LLC purchased a new stake in shares of Allegro MicroSystems in the fourth quarter valued at $35,433,000. SG Americas Securities LLC purchased a new stake in shares of Allegro MicroSystems in the first quarter valued at $805,000. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Allegro MicroSystems by 18.4% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 26,883 shares of the company's stock valued at $668,000 after purchasing an additional 4,185 shares in the last quarter. Fifth Third Bancorp lifted its holdings in shares of Allegro MicroSystems by 63.7% in the first quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock valued at $33,000 after purchasing an additional 504 shares in the last quarter. Finally, Frontier Capital Management Co. LLC purchased a new stake in shares of Allegro MicroSystems in the fourth quarter valued at $1,994,000. Hedge funds and other institutional investors own 56.45% of the company's stock.

About Allegro MicroSystems

Allegro MicroSystems, Inc, together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers.