TD Cowen Issues Pessimistic Forecast for Allegro MicroSystems (NASDAQ:ALGM) Stock Price

Key Points

• TD Cowen has reduced its price target for Allegro MicroSystems from $42.00 to $37.00 while maintaining a "buy" rating, indicating a potential upside of 17.80% from the current price.
• Other analysts have varied opinions with Barclays lifting their target to $30.00 and Bank of America raising it to $45.00, showcasing a range of outlooks on the stock.
• Despite a recent 7.3% decline in the stock price, Allegro reported a revenue increase of 21.9% year-over-year in its latest quarterly statement.

Allegro MicroSystems (NASDAQ:ALGM - Free Report) had its target price reduced by TD Cowen from $42.00 to $37.00 in a research report report published on Friday morning, MarketBeat reports. They currently have a buy rating on the stock.

Other research analysts have also issued reports about the company. Morgan Stanley raised their target price on Allegro MicroSystems from $23.00 to $25.00 and gave the stock an "equal weight" rating in a research report on Monday, June 9th. Needham & Company LLC raised their target price on Allegro MicroSystems from $25.00 to $37.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Mizuho raised their target price on Allegro MicroSystems from $31.00 to $37.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 8th. Bank of America raised their target price on Allegro MicroSystems from $38.00 to $45.00 and gave the stock an "action list buy" rating in a research report on Thursday, July 10th. Finally, UBS Group raised their target price on Allegro MicroSystems from $35.00 to $42.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. One analyst has rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $37.56.

Allegro MicroSystems Price Performance

Shares of ALGM traded down $0.24 during trading hours on Friday, reaching $31.23. The stock had a trading volume of 953,900 shares, compared to its average volume of 2,906,737. Allegro MicroSystems has a 12 month low of $16.38 and a 12 month high of $38.45. The stock has a market capitalization of $5.78 billion, a PE ratio of -84.40 and a beta of 1.74. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.26 and a current ratio of 3.70. The company's 50-day moving average is $32.39 and its two-hundred day moving average is $26.75.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its quarterly earnings results 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 company had revenue of $203.41 million during the quarter, compared to analysts' expectations of $197.82 million. During the same period in the prior year, the company earned $0.03 EPS. Allegro MicroSystems's revenue was up 21.9% compared to the same quarter last year. Research analysts expect that Allegro MicroSystems will post 0.01 EPS for the current year.

Institutional Trading of Allegro MicroSystems

Several large investors have recently made changes to their positions in the company. UMB Bank n.a. grew its stake in shares of Allegro MicroSystems by 29.2% in the 2nd quarter. UMB Bank n.a. now owns 1,835 shares of the company's stock valued at $63,000 after buying an additional 415 shares during the period. Mackenzie Financial Corp increased its holdings in Allegro MicroSystems by 2.8% during the 4th quarter. Mackenzie Financial Corp now owns 18,192 shares of the company's stock worth $398,000 after purchasing an additional 491 shares in the last quarter. Fifth Third Bancorp increased its holdings in Allegro MicroSystems by 63.7% during the 1st quarter. Fifth Third Bancorp now owns 1,295 shares of the company's stock worth $33,000 after purchasing an additional 504 shares in the last quarter. Retirement Systems of Alabama increased its holdings in Allegro MicroSystems by 0.3% during the 2nd quarter. Retirement Systems of Alabama now owns 200,781 shares of the company's stock worth $6,865,000 after purchasing an additional 668 shares in the last quarter. Finally, Teacher Retirement System of Texas increased 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 purchasing an additional 745 shares in the last quarter. 56.45% of the stock is currently owned by institutional investors and hedge funds.

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.