Allegro MicroSystems (NASDAQ:ALGM) Stock Gets Price Target Trim from UBS Group

Key Points

• UBS cut Allegro MicroSystems’ price target from $50 to $48 but maintained a “buy” rating, implying 57.22% upside from the prior close.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $48.75, despite mixed adjustments from other brokerages.
• Allegro reported quarterly EPS of $0.26 versus a $0.24 estimate and revenue of $276.88 million, up 29.2% year over year.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its price objective cut by research analysts at UBS Group from $50.00 to $48.00 in a research note issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's target price would suggest a potential upside of 57.22% from the stock's previous close.

A number of other brokerages also recently issued reports on ALGM. Morgan Stanley raised their price target on Allegro MicroSystems from $51.00 to $52.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Barclays dropped their target price on Allegro MicroSystems from $48.00 to $45.00 and set an "equal weight" rating on the stock in a report on Friday. Royal Bank Of Canada initiated coverage on Allegro MicroSystems in a report on Friday, October 2nd. They set an "outperform" rating and a $50.00 target price for the company. Wells Fargo & Company dropped their price target on shares of Allegro MicroSystems from $45.00 to $40.00 and set an "overweight" rating for the company in a research report on Friday. Finally, Weiss Ratings lowered shares of Allegro MicroSystems from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $48.75.

Allegro MicroSystems Price Performance

Shares of NASDAQ:ALGM opened at $30.53 on Friday. Allegro MicroSystems has a 52-week low of $22.41 and a 52-week high of $71.77. The stock has a 50 day moving average price of $35.09 and a 200-day moving average price of $40.66. The firm has a market capitalization of $5.69 billion, a P/E ratio of 203.55, a P/E/G ratio of 0.90 and a beta of 2.05. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.79 and a current ratio of 4.13.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.24 by $0.02. Allegro MicroSystems had a return on equity of 10.34% and a net margin of 3.07%. The company had revenue of $276.88 million for the quarter, compared to analysts' expectations of $270.86 million. During the same period last year, the firm posted $0.13 earnings per share. Allegro MicroSystems's revenue was up 29.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Allegro MicroSystems will post 0.65 EPS for the current fiscal year.

Insider Activity

In related news, SVP Erin Hagen sold 2,285 shares of the stock in a transaction that occurred 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 completion of the sale, the senior vice president directly owned 31,052 shares of the company's stock, valued at $1,378,398.28. This represents a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Allegro MicroSystems

Hedge funds have recently modified their holdings of the stock. Oregon Public Employees Retirement Fund lifted its stake in Allegro MicroSystems by 2.3% in the third quarter. Oregon Public Employees Retirement Fund now owns 26,237 shares of the company's stock valued at $954,000 after acquiring an additional 600 shares during the last quarter. TSG Advice Partners LLC acquired a new position in shares of Allegro MicroSystems during the 3rd quarter worth $368,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Allegro MicroSystems during the 3rd quarter worth $379,000. ProShare Advisors LLC increased its stake in shares of Allegro MicroSystems by 36.6% during the 3rd quarter. ProShare Advisors LLC now owns 18,312 shares of the company's stock worth $666,000 after purchasing an additional 4,905 shares during the last quarter. Finally, Vise Technologies Inc. raised its holdings in shares of Allegro MicroSystems by 120.5% during the 3rd quarter. Vise Technologies Inc. now owns 9,915 shares of the company's stock valued at $360,000 after purchasing an additional 5,419 shares in the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

About Allegro MicroSystems

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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