Allegro MicroSystems (NASDAQ:ALGM) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Allegro MicroSystems (NASDAQ:ALGM) had its price target boosted by analysts at Morgan Stanley from $23.00 to $25.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Morgan Stanley’s price target would suggest a potential downside of 18.03% from the stock’s previous close.

Several other brokerages also recently issued reports on ALGM. Barclays raised their price target on Allegro MicroSystems from $22.00 to $23.00 and gave the company an “overweight” rating in a report on Friday, May 9th. Mizuho raised their price target on Allegro MicroSystems from $28.00 to $31.00 and gave the company an “outperform” rating in a report on Monday, March 24th. Needham & Company LLC cut their price target on Allegro MicroSystems from $30.00 to $25.00 and set a “buy” rating for the company in a report on Friday, May 9th. Finally, UBS Group raised their price target on Allegro MicroSystems from $22.00 to $25.00 and gave the company a “buy” rating in a report on Friday, May 9th. One research analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $27.63.

Allegro MicroSystems Price Performance

NASDAQ:ALGM opened at $30.50 on Monday. Allegro MicroSystems has a 1-year low of $16.38 and a 1-year high of $33.26. The company has a current ratio of 4.91, a quick ratio of 3.00 and a debt-to-equity ratio of 0.40. The firm has a fifty day simple moving average of $22.86 and a 200 day simple moving average of $23.60. The stock has a market capitalization of $5.64 billion, a PE ratio of -87.14 and a beta of 1.67.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, May 8th. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.01. Allegro MicroSystems had a negative net margin of 8.45% and a positive return on equity of 4.31%. The business had revenue of $192.82 million during the quarter, compared to analysts’ expectations of $185.35 million. During the same period last year, the business earned $0.25 earnings per share. The firm’s revenue was down 19.9% on a year-over-year basis. On average, research analysts expect that Allegro MicroSystems will post 0.01 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ALGM. Invesco Ltd. increased its position in shares of Allegro MicroSystems by 131.5% in the first quarter. Invesco Ltd. now owns 4,835,641 shares of the company’s stock worth $121,520,000 after purchasing an additional 2,746,880 shares during the period. JPMorgan Chase & Co. increased its position in shares of Allegro MicroSystems by 20.6% in the third quarter. JPMorgan Chase & Co. now owns 11,023,628 shares of the company’s stock worth $256,851,000 after purchasing an additional 1,884,578 shares during the period. Kodai Capital Management LP bought a new position in shares of Allegro MicroSystems in the first quarter worth $41,610,000. Schonfeld Strategic Advisors LLC bought a new position in shares of Allegro MicroSystems in the fourth quarter worth $35,433,000. Finally, Paloma Partners Management Co grew its position in Allegro MicroSystems by 312.8% in the fourth quarter. Paloma Partners Management Co now owns 2,103,800 shares of the company’s stock valued at $45,989,000 after acquiring an additional 1,594,170 shares during the last quarter. Institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Company Profile

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.