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

Key Points

• Analysts rate Allegro MicroSystems “Moderate Buy”: Nine of 12 brokerages recommend buying the stock, with an average 12-month price target of $53.45.
• Recent analyst views were mixed, with several firms cutting price targets while Benchmark initiated coverage with a buy rating and a $60 target.
• Allegro exceeded quarterly expectations, reporting $0.23 EPS versus $0.21 expected and $259.24 million in revenue, up 27.5% year over year.

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM - Get Free Report) have earned an average rating of "Moderate Buy" from the twelve brokerages that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $53.4545.

ALGM has been the topic of a number of recent analyst reports. Barclays lowered shares of Allegro MicroSystems from an "overweight" rating to an "equal weight" rating and set a $48.00 price objective on the stock. in a report on Monday, July 20th. TD Cowen dropped their target price on Allegro MicroSystems from $66.00 to $48.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. Morgan Stanley boosted 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. Benchmark began coverage on Allegro MicroSystems in a report on Wednesday, August 12th. They issued a "buy" rating and a $60.00 price target for the company. Finally, Mizuho lowered their price objective on Allegro MicroSystems from $67.00 to $58.00 and set an "outperform" rating for the company in a research note on Friday, July 31st.

Insider Transactions at Allegro MicroSystems

In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the stock in a transaction 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 transaction, the senior vice president directly owned 31,052 shares in the company, valued at $1,378,398.28. This represents a 6.85% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Several large investors have recently modified their holdings of the stock. Parallel Advisors LLC increased its holdings in 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 during the last quarter. Transamerica Financial Advisors LLC acquired a new stake in Allegro MicroSystems during the second quarter valued at approximately $27,000. Vanguard Personalized Indexing Management LLC lifted its holdings in Allegro MicroSystems by 3.0% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company's stock worth $376,000 after buying an additional 419 shares during the last quarter. Rakuten Securities Inc. acquired a new position in shares of Allegro MicroSystems in the 2nd quarter worth approximately $31,000. Finally, Continuum Advisory LLC acquired a new position in shares of Allegro MicroSystems in the 2nd quarter worth approximately $35,000. Institutional investors own 56.45% of the company's stock.

Allegro MicroSystems Stock Performance

Allegro MicroSystems stock opened at $36.61 on Tuesday. The stock's 50 day moving average price is $44.89 and its 200 day moving average price is $43.12. The firm has a market capitalization of $6.82 billion, a PE ratio of 610.27, a price-to-earnings-growth ratio of 1.15 and a beta of 1.91. 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 issued its quarterly earnings data on Thursday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.02. The company had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. Allegro MicroSystems's revenue for the quarter was up 27.5% on a year-over-year basis. During the same quarter last year, the company earned $0.09 earnings per share. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. As a group, sell-side analysts expect that Allegro MicroSystems will post 0.65 EPS for the current fiscal year.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc NASDAQ: ALGM is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro's product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.