Allegro MicroSystems, Inc. (NASDAQ:ALGM) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Allegro MicroSystems, with 10 buy ratings, one strong buy, one hold and one sell. The average 12-month price target is $53.17, above the reported share price of $39.53.
• Allegro exceeded quarterly expectations, reporting $0.23 in EPS versus the $0.21 consensus and $259.24 million in revenue, up 27.5% year over year. Management guided to fiscal Q2 2027 EPS of $0.23–$0.26.
• Institutional investors own 56.45% of the company, with BlackRock establishing a stake valued at approximately $967 million. An Allegro senior vice president separately sold 2,285 shares, reducing her position by 6.85%.

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the thirteen brokerages that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, one has given a hold recommendation, ten have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $53.17.

ALGM has been the topic of several research analyst reports. Wall Street Zen raised shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Sunday, August 2nd. Morgan Stanley boosted their price objective on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Needham & Company LLC upped their price objective on Allegro MicroSystems from $55.00 to $57.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. TD Cowen dropped their target price on Allegro MicroSystems from $66.00 to $48.00 and set a "buy" rating for the company in a research report on Friday, July 31st. Finally, Royal Bank Of Canada began coverage on Allegro MicroSystems in a research note on Friday. They set an "outperform" rating and a $50.00 price target on the stock.

Insiders Place Their Bets

In other news, SVP Erin Hagen sold 2,285 shares of the firm'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 transaction, the senior vice president owned 31,052 shares of the company's stock, valued at approximately $1,378,398.28. This trade represents a 6.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Allegro MicroSystems

A number of hedge funds and other institutional investors have recently bought and sold shares of ALGM. BlackRock Inc. purchased a new stake in shares of Allegro MicroSystems in the 2nd quarter worth approximately $966,975,000. Norges Bank purchased a new position in Allegro MicroSystems during the fourth quarter valued at approximately $38,457,000. Bank of America Corp DE bought a new position in Allegro MicroSystems in the second quarter worth approximately $64,171,000. Bank of New York Mellon Corp purchased a new stake in Allegro MicroSystems during the second quarter worth $49,914,000. Finally, Analog Century Management LP lifted its holdings in Allegro MicroSystems by 60.9% during the fourth quarter. Analog Century Management LP now owns 1,890,072 shares of the company's stock worth $49,860,000 after buying an additional 715,119 shares during the period. 56.45% of the stock is owned by institutional investors.

Allegro MicroSystems Stock Performance

NASDAQ ALGM opened at $39.53 on Friday. The company has a 50 day moving average of $38.31 and a 200-day moving average of $43.10. The company has a current ratio of 3.70, a quick ratio of 2.33 and a debt-to-equity ratio of 0.30. Allegro MicroSystems has a 1-year low of $22.41 and a 1-year high of $71.77. The firm has a market cap of $7.37 billion, a price-to-earnings ratio of 658.94, a PEG ratio of 1.15 and a beta of 1.99.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.21 by $0.02. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%.The company had revenue of $259.24 million for the quarter, compared to analysts' expectations of $251.44 million. During the same quarter in the prior year, the business earned $0.09 earnings per share. The business's revenue for the quarter was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. On average, equities analysts forecast that Allegro MicroSystems will post 0.65 earnings per share for the current fiscal year.

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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