Allegro MicroSystems (NASDAQ:ALGM) Stock Rating Raised to "Moderate Buy" at Royal Bank Of Canada

Key Points

• Royal Bank of Canada upgraded Allegro MicroSystems to “Moderate Buy.” MarketBeat’s analyst consensus is also “Moderate Buy,” with an average price target of $53.17 versus the stock’s reported price of $39.53.
• Allegro reported quarterly EPS of $0.23, beating estimates of $0.21, while revenue reached $259.24 million and increased 27.5% year over year.
• The stock has a market capitalization of approximately $7.37 billion and trades well below its 12-month high of $71.77; institutional investors own 56.45% of shares, while an insider recently sold 2,285 shares.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) was upgraded by equities researchers at Royal Bank Of Canada to a "moderate buy" rating in a research report issued to clients and investors on Friday, Zacks reports.

ALGM has been the subject of a number of other research reports. Wall Street Zen upgraded shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Sunday, August 2nd. TD Cowen cut their target price on shares of Allegro MicroSystems from $66.00 to $48.00 and set a "buy" rating on the stock in a research note on Friday, July 31st. Morgan Stanley lifted their price target on Allegro MicroSystems from $51.00 to $52.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Weiss Ratings upgraded Allegro MicroSystems from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Monday, August 3rd. Finally, Barclays downgraded Allegro MicroSystems from an "overweight" rating to an "equal weight" rating and set a $48.00 target price on the stock. in a report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Allegro MicroSystems presently has a consensus rating of "Moderate Buy" and a consensus target price of $53.17.

Allegro MicroSystems Stock Performance

Allegro MicroSystems stock opened at $39.53 on Friday. The company has a market cap of $7.37 billion, a price-to-earnings ratio of 658.94, a price-to-earnings-growth ratio of 1.15 and a beta of 1.99. Allegro MicroSystems has a 12 month low of $22.41 and a 12 month high of $71.77. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.33. The stock's 50-day moving average is $38.31 and its 200-day moving average is $43.10.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.02. The business had revenue of $259.24 million for the quarter, compared to analyst estimates of $251.44 million. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The business's quarterly revenue was up 27.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.09 EPS. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Equities analysts anticipate that Allegro MicroSystems will post 0.65 earnings per share 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 dated Monday, August 10th. The shares were sold at an average price of $44.39, for a total value of $101,431.15. Following the completion of the transaction, 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 Securities & Exchange Commission, which is available at this link. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Allegro MicroSystems

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Transamerica Financial Advisors LLC bought a new stake in shares of Allegro MicroSystems during the 2nd quarter worth about $27,000. Rakuten Securities Inc. acquired a new position in Allegro MicroSystems in the second quarter worth approximately $31,000. Parallel Advisors LLC increased its holdings in shares of Allegro MicroSystems by 42.8% in the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock valued at $32,000 after buying an additional 302 shares in the last quarter. Continuum Advisory LLC bought a new position in shares of Allegro MicroSystems in the second quarter valued at $35,000. Finally, First Bancorp Inc ME acquired a new stake in shares of Allegro MicroSystems during the 2nd quarter valued at $49,000. Institutional investors own 56.45% of the company's stock.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc NASDAQ: ALGM develops and manufactures semiconductor solutions that enable motion, power management and energy efficiency in automotive and industrial applications. The company specializes in sensor integrated circuits and power semiconductor devices designed to monitor, control and improve the performance of electronic systems.

Its product portfolio includes magnetic sensors for detecting position, speed, current and angle, as well as power management integrated circuits, motor drivers, LED driver ICs and other application-specific solutions.

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