Roth Capital Initiates Coverage on Allegro MicroSystems (NASDAQ:ALGM)

Key Points

• Roth Capital initiated coverage of Allegro MicroSystems with a Buy rating and a $40 price target, implying about 26% upside from the stock’s current price.
• Analyst sentiment is broadly positive: MarketBeat reports a Moderate Buy consensus and a $48.08 average target, though several firms recently lowered their price objectives.
• Allegro beat quarterly estimates, reporting EPS of $0.26 versus $0.24 expected and revenue of $276.88 million; revenue rose 29.2% year over year.

Equities research analysts at Roth Capital started coverage on shares of Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) in a report released on Friday, Briefing.com reports. The firm set a "buy" rating and a $40.00 price target on the stock. Roth Capital's price objective suggests a potential upside of 26.14% from the stock's current price.

Other equities research analysts also recently issued research reports about the company. TD Cowen cut their price objective on Allegro MicroSystems from $48.00 to $40.00 and set a "buy" rating on the stock in a report on Monday, October 19th. Wells Fargo & Company dropped their target price on Allegro MicroSystems from $45.00 to $40.00 and set an "overweight" rating for the company in a research report on Friday, October 30th. UBS Group dropped their target price on Allegro MicroSystems from $50.00 to $48.00 and set a "buy" rating for the company in a research report on Friday, October 30th. Mizuho cut their price target on Allegro MicroSystems from $58.00 to $46.00 and set an "outperform" rating on the stock in a research note on Friday, October 30th. 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, eleven have given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $48.08.

Allegro MicroSystems Trading Down 1.2%

Shares of Allegro MicroSystems stock opened at $31.71 on Friday. The company has a market capitalization of $5.91 billion, a price-to-earnings ratio of 211.41, a PEG ratio of 0.88 and a beta of 2.05. The company has a quick ratio of 2.79, a current ratio of 4.13 and a debt-to-equity ratio of 0.28. Allegro MicroSystems has a 12-month low of $22.41 and a 12-month high of $71.77. The firm's 50-day moving average price is $34.09 and its two-hundred day moving average price is $40.57.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.02. The company had revenue of $276.88 million for the quarter, compared to analyst estimates of $270.86 million. Allegro MicroSystems had a return on equity of 10.34% and a net margin of 3.07%. The company's revenue for the quarter was up 29.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.13 EPS. On average, analysts forecast that Allegro MicroSystems will post 0.69 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Allegro MicroSystems

A number of hedge funds have recently modified their holdings of the business. Transamerica Financial Advisors LLC bought a new stake in shares of Allegro MicroSystems in the second quarter worth $27,000. Rakuten Securities Inc. bought a new position in Allegro MicroSystems during the 2nd quarter worth $31,000. Continuum Advisory LLC bought a new position in Allegro MicroSystems during the 2nd quarter worth $35,000. First Bancorp Inc ME bought a new position in Allegro MicroSystems during the 2nd quarter worth $49,000. Finally, Parallel Advisors LLC lifted its holdings in Allegro MicroSystems by 42.8% during the 1st 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. Institutional investors and hedge funds own 56.45% of the company's stock.

About Allegro MicroSystems

Allegro MicroSystems designs, develops and manufactures semiconductor devices used to sense and control motion, position, speed and electrical current. Its products include magnetic sensor integrated circuits and power integrated circuits for automotive and industrial applications. The company's portfolio includes current and position sensors, motor-driver and power-management chips, and solutions for vehicle systems such as electrification, safety and driver assistance. Its products also support industrial automation and other applications that require precise sensing or control.

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