Allegro MicroSystems (NASDAQ:ALGM) Price Target Cut to $35.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley has lowered its target price for Allegro MicroSystems from $38.00 to $35.00, while maintaining an "equal weight" rating on the stock.
• Analyst ratings for Allegro MicroSystems show that one has a hold rating, while seven have given buy ratings, reflecting a generally positive outlook for the company.
• In its recent earnings report, Allegro MicroSystems met analysts' expectations by posting $0.09 earnings per share with revenues of $203.41 million, marking a 21.9% year-over-year increase.

Allegro MicroSystems (NASDAQ:ALGM - Free Report) had its target price lowered by Morgan Stanley from $38.00 to $35.00 in a report issued on Friday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the stock.

Other analysts also recently issued research reports about the stock. Mizuho lifted their target price on shares of Allegro MicroSystems from $31.00 to $37.00 and gave the company an "outperform" rating in a report on Tuesday, July 8th. Wells Fargo & Company reissued an "overweight" rating and set a $42.00 target price (up previously from $33.00) on shares of Allegro MicroSystems in a research note on Wednesday, July 16th. Bank of America lifted their target price on Allegro MicroSystems from $38.00 to $45.00 and gave the company an "action list buy" rating in a research report on Thursday, July 10th. UBS Group increased their price target on shares of Allegro MicroSystems from $35.00 to $42.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Finally, Barclays upped their target price on shares of Allegro MicroSystems from $23.00 to $30.00 and gave the stock an "overweight" rating in a research note on Friday. One analyst has rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $37.56.

Allegro MicroSystems Trading Down 0.5%

Shares of ALGM stock traded down $0.15 on Friday, hitting $31.26. 2,066,190 shares of the stock traded hands, compared to its average volume of 2,277,904. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.66 and a current ratio of 3.70. Allegro MicroSystems has a twelve month low of $16.38 and a twelve month high of $38.45. The firm's 50-day moving average price is $32.27 and its two-hundred day moving average price is $26.68. The stock has a market capitalization of $5.78 billion, a PE ratio of -84.48 and a beta of 1.74.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.09 EPS for the quarter, meeting analysts' consensus estimates of $0.09. Allegro MicroSystems had a positive return on equity of 2.09% and a negative net margin of 9.00%. The firm had revenue of $203.41 million for the quarter, compared to analysts' expectations of $197.82 million. During the same period in the prior year, the firm posted $0.03 earnings per share. The firm's quarterly revenue was up 21.9% on a year-over-year basis. As a group, analysts anticipate that Allegro MicroSystems will post 0.01 EPS for the current year.

Hedge Funds Weigh In On Allegro MicroSystems

Several large investors have recently bought and sold shares of ALGM. Teacher Retirement System of Texas lifted its holdings in Allegro MicroSystems by 4.0% during the 2nd quarter. Teacher Retirement System of Texas now owns 19,573 shares of the company's stock worth $669,000 after buying an additional 745 shares during the last quarter. Nisa Investment Advisors LLC lifted its stake in Allegro MicroSystems by 158.8% during the second quarter. Nisa Investment Advisors LLC now owns 2,210 shares of the company's stock worth $76,000 after purchasing an additional 1,356 shares during the last quarter. AlphaQuest LLC acquired a new position in Allegro MicroSystems in the second quarter valued at approximately $265,000. Sumitomo Mitsui Trust Group Inc. increased its stake in Allegro MicroSystems by 3.1% in the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 31,652 shares of the company's stock valued at $1,082,000 after purchasing an additional 961 shares during the last quarter. Finally, Ethic Inc. raised its holdings in Allegro MicroSystems by 22.0% during the second quarter. Ethic Inc. now owns 23,758 shares of the company's stock worth $812,000 after purchasing an additional 4,281 shares in the last quarter. Hedge funds and other institutional investors own 56.45% of the company's stock.

About Allegro MicroSystems

Allegro MicroSystems, Inc, together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers.