Allegro MicroSystems (NASDAQ:ALGM) Given New $50.00 Price Target at Needham & Company LLC

Key Points

• Needham cut Allegro MicroSystems’ price target from $57 to $50 while maintaining a “Buy” rating, implying approximately 51% upside from the reported $33.03 share price. The broader analyst consensus remains “Moderate Buy,” with an average target of $51.
• Allegro reported quarterly revenue of approximately $276.9 million, up 29% year over year and ahead of estimates, while EPS of $0.26 exceeded the $0.24 consensus. Growth was supported by automotive electrification, industrial demand and data-center opportunities.
• Despite the earnings beat, shares fell 6.6%, potentially reflecting investor concerns about forward guidance, a high valuation and the stock’s position below its longer-term moving average.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its price objective reduced by equities researchers at Needham & Company LLC from $57.00 to $50.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. Needham & Company LLC's target price would indicate a potential upside of 51.38% from the company's current price.

A number of other equities analysts also recently commented on the stock. Mizuho dropped their target price on shares of Allegro MicroSystems from $67.00 to $58.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. Wells Fargo & Company dropped their price objective on Allegro MicroSystems from $56.00 to $45.00 and set an "overweight" rating on the stock in a research note on Tuesday, October 20th. Weiss Ratings cut Allegro MicroSystems from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 23rd. Morgan Stanley lifted their target price on Allegro MicroSystems from $51.00 to $52.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. Finally, Wall Street Zen upgraded Allegro MicroSystems from a "hold" rating to a "buy" rating in a report on Sunday, August 2nd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Allegro MicroSystems has a consensus rating of "Moderate Buy" and an average target price of $51.00.

Allegro MicroSystems Trading Down 6.6%

Allegro MicroSystems stock traded down $2.34 during mid-day trading on Thursday, hitting $33.03. The company's stock had a trading volume of 5,972,433 shares, compared to its average volume of 2,636,232. The company has a 50 day moving average of $35.33 and a 200-day moving average of $40.65. The stock has a market cap of $6.16 billion, a PE ratio of 550.59, a P/E/G ratio of 0.99 and a beta of 1.99. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.33 and a current ratio of 3.70. Allegro MicroSystems has a one year low of $22.41 and a one year high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its earnings results on Thursday, October 29th. The company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.02. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%. The business had revenue of $276.88 million for the quarter, compared to analyst estimates of $270.86 million. During the same quarter last year, the firm posted $0.13 earnings per share. The business's revenue was up 29.2% compared to the same quarter last year. On average, research analysts anticipate that Allegro MicroSystems will post 0.65 EPS for the current year.

Insider Transactions at Allegro MicroSystems

In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $44.39, for a total value of $101,431.15. Following the sale, the senior vice president owned 31,052 shares in the company, valued at approximately $1,378,398.28. This represents a 6.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 0.50% of the company's stock.

Institutional Trading of Allegro MicroSystems

Hedge funds have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC acquired a new position in Allegro MicroSystems in the 2nd quarter valued at about $27,000. Rakuten Securities Inc. purchased a new stake in shares of Allegro MicroSystems during the 2nd quarter valued at approximately $31,000. Parallel Advisors LLC raised its position in shares of Allegro MicroSystems by 42.8% during the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock valued at $32,000 after buying an additional 302 shares during the period. Continuum Advisory LLC purchased a new stake in shares of Allegro MicroSystems during the 2nd quarter valued at approximately $35,000. Finally, Signaturefd LLC lifted its holdings in Allegro MicroSystems by 51.3% in the third quarter. Signaturefd LLC now owns 1,070 shares of the company's stock valued at $39,000 after acquiring an additional 363 shares during the last quarter. 56.45% of the stock is owned by hedge funds and other institutional investors.

Key Allegro MicroSystems News

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Revenue rose 29% year over year to approximately $277 million, exceeding the roughly $271 million analyst estimate. GAAP earnings per share quadrupled from the prior-year quarter to $0.26, topping consensus estimates of $0.24-$0.25. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: Management highlighted record sales in its Industrial & Other and Data Center businesses, while non-GAAP EPS doubled year over year. Reports also noted improving inventory levels, a potentially constructive sign for demand and supply-chain conditions. Allegro MicroSystems surprises with Q3 sales
• Positive Sentiment: Allegro’s power and sensing chips continue to benefit from vehicle electrification, advanced driver-assistance systems and rising semiconductor content per vehicle. Conestoga’s decision to initiate a position reflects that longer-term growth thesis. Conestoga SMid Cap Composite Portfolio Activity
• Neutral Sentiment: The company also introduced power and cooling solutions aimed at sustainable 800-volt AI data centers, expanding its exposure to the fast-growing data-center market, although the near-term revenue contribution was not specified. Allegro introduces 800V AI data-center solutions
• Negative Sentiment: Despite the strong quarter, ALGM traded lower, suggesting the results may have been largely anticipated or that investors wanted stronger forward guidance. The stock’s elevated earnings multiple and position below its longer-term moving average may also be encouraging profit-taking and limiting the reaction to the beat.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company's portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.

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