Allegro MicroSystems (NASDAQ:ALGM) Hits New 12-Month High After Better-Than-Expected Earnings

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $39.89 and last traded at $35.0680, with a volume of 2610018 shares traded. The stock had previously closed at $34.55.

The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.01. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.The firm had revenue of $229.21 million for the quarter, compared to the consensus estimate of $220.78 million. During the same period in the prior year, the business posted $0.07 earnings per share. The company’s revenue for the quarter was up 28.9% on a year-over-year basis.

Key Allegro MicroSystems News

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Q3 results beat expectations — Allegro reported $0.15 EPS (vs. $0.14 consensus) and $229.2M revenue (vs. ~$220.8M), with revenue up ~29% YoY; management provided revenue and EPS guidance that supported a bullish near‑term outlook. GlobeNewswire: Q3 Results
• Positive Sentiment: Multiple analyst price‑target raises — TD Cowen, Wells Fargo, Morgan Stanley and Jefferies raised targets (examples: TD Cowen and Wells Fargo to $45; Jefferies to $43), signaling institutional support and providing fresh upside narratives for traders. Benzinga: Analyst Coverage The Fly: TD Cowen Raise
• Positive Sentiment: Shares briefly rallied to multi‑year highs on the swing to profitability and the stronger sales outlook, reflecting momentum buying after the print. MSN: Stock Jumps
• Neutral Sentiment: Company guidance is roughly in line with consensus (Q4 EPS guide $0.140–$0.18; revenue $230–240M), so while supportive, it wasn’t an unambiguous upside surprise that would guarantee further multiple expansion. MSN: Guidance Details
• Neutral Sentiment: Investors can review the company presentation and full earnings call transcript for detail on product mix and end‑market exposure (automotive still dominant; data center exposure cited as a growth catalyst). Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Valuation and earnings‑quality concerns — a Seeking Alpha piece warns Allegro is “pricing in green shoots” with a demanding multiple (~8x sales) and that adjusted EPS is inflated by significant stock‑based compensation, suggesting true cash earnings are lower. That note likely prompted some profit‑taking. Seeking Alpha: Valuation Caution

Analyst Upgrades and Downgrades

ALGM has been the topic of several recent analyst reports. TD Cowen raised their price target on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the stock a “buy” rating in a research note on Friday. Needham & Company LLC upped their target price on shares of Allegro MicroSystems from $37.00 to $41.00 and gave the stock a “buy” rating in a research note on Thursday. Mizuho set a $38.00 price target on shares of Allegro MicroSystems in a research note on Tuesday, December 16th. Wells Fargo & Company increased their price objective on Allegro MicroSystems from $40.00 to $45.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Morgan Stanley raised their price objective on Allegro MicroSystems from $35.00 to $45.00 and gave the stock an “equal weight” rating in a report on Friday. Nine investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $43.50.

Hedge Funds Weigh In On Allegro MicroSystems

A number of large investors have recently bought and sold shares of the business. PNC Financial Services Group Inc. boosted its position in Allegro MicroSystems by 2.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 14,713 shares of the company’s stock valued at $430,000 after acquiring an additional 381 shares in the last quarter. Hantz Financial Services Inc. lifted its stake in shares of Allegro MicroSystems by 86.9% during the 3rd quarter. Hantz Financial Services Inc. now owns 901 shares of the company’s stock worth $26,000 after purchasing an additional 419 shares during the last quarter. Advisors Asset Management Inc. boosted its position in Allegro MicroSystems by 2.1% during the third quarter. Advisors Asset Management Inc. now owns 22,499 shares of the company’s stock valued at $657,000 after purchasing an additional 466 shares in the last quarter. Retirement Systems of Alabama boosted its position in Allegro MicroSystems by 0.3% during the second quarter. Retirement Systems of Alabama now owns 200,781 shares of the company’s stock valued at $6,865,000 after purchasing an additional 668 shares in the last quarter. Finally, Arizona State Retirement System grew its stake in Allegro MicroSystems by 1.8% in the third quarter. Arizona State Retirement System now owns 38,293 shares of the company’s stock valued at $1,118,000 after purchasing an additional 685 shares during the last quarter. Institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Price Performance

The firm has a market capitalization of $6.83 billion, a P/E ratio of -461.38 and a beta of 1.61. The stock’s fifty day simple moving average is $29.28 and its 200 day simple moving average is $29.83. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.65 and a quick ratio of 2.48.

About Allegro MicroSystems

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.