Wall Street Zen Upgrades Allegro MicroSystems (NASDAQ:ALGM) to Buy

Allegro MicroSystems (NASDAQ:ALGM) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Sunday.

ALGM has been the topic of a number of other research reports. Jefferies Financial Group restated a “buy” rating and set a $62.00 price target on shares of Allegro MicroSystems in a research note on Thursday, May 7th. Wells Fargo & Company lifted their price objective on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Mizuho upped their price objective on shares of Allegro MicroSystems from $44.00 to $54.00 and gave the stock an “outperform” rating in a research report on Friday, May 8th. Evercore restated an “outperform” rating and issued a $53.00 target price on shares of Allegro MicroSystems in a research note on Friday, May 8th. Finally, Needham & Company LLC lifted their target price on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Ten investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $51.80.

Allegro MicroSystems Price Performance

Shares of ALGM opened at $59.00 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.21 and a current ratio of 3.45. Allegro MicroSystems has a fifty-two week low of $22.41 and a fifty-two week high of $59.56. The firm has a 50-day simple moving average of $46.26 and a 200-day simple moving average of $37.38. The company has a market capitalization of $10.99 billion, a price-to-earnings ratio of -655.48 and a beta of 1.98.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The firm had revenue of $243.19 million for the quarter, compared to analysts’ expectations of $235.94 million. During the same quarter in the previous year, the firm posted $0.06 EPS. The firm’s revenue for the quarter was up 26.1% on a year-over-year basis. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. On average, equities research analysts anticipate that Allegro MicroSystems will post 0.77 earnings per share for the current year.

Insider Transactions at Allegro MicroSystems

In related news, CEO Michael Doogue sold 30,089 shares of Allegro MicroSystems stock in a transaction on Monday, May 11th. The stock was sold at an average price of $47.23, for a total transaction of $1,421,103.47. Following the completion of the transaction, the chief executive officer directly owned 252,797 shares of the company’s stock, valued at approximately $11,939,602.31. The trade was a 10.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Roald Graham Webster sold 5,217 shares of the business’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $44.88, for a total value of $234,138.96. Following the sale, the chief accounting officer owned 13,106 shares in the company, valued at approximately $588,197.28. The trade was a 28.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 68,607 shares of company stock worth $3,213,714 over the last ninety days. 0.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Allegro MicroSystems

Several institutional investors and hedge funds have recently made changes to their positions in ALGM. Parallel Advisors LLC grew its stake in Allegro MicroSystems by 42.8% in the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after acquiring an additional 302 shares during the last quarter. Bank of America Corp DE raised its position in Allegro MicroSystems by 48.3% during the first quarter. Bank of America Corp DE now owns 855,453 shares of the company’s stock worth $26,972,000 after acquiring an additional 278,798 shares during the last quarter. California State Teachers Retirement System lifted its holdings in shares of Allegro MicroSystems by 21.8% in the first quarter. California State Teachers Retirement System now owns 149,826 shares of the company’s stock valued at $4,724,000 after purchasing an additional 26,828 shares in the last quarter. Maverick Capital Ltd. purchased a new stake in shares of Allegro MicroSystems in the first quarter valued at about $1,331,000. Finally, Quantinno Capital Management LP grew its position in shares of Allegro MicroSystems by 104.9% in the first quarter. Quantinno Capital Management LP now owns 133,902 shares of the company’s stock valued at $4,222,000 after purchasing an additional 68,549 shares during the last quarter. 56.45% of the stock is currently owned by hedge funds and other institutional investors.

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.