Allegro MicroSystems (NASDAQ:ALGM) Trading 9.5% Higher – Here’s Why

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares were up 9.5% on Thursday . The stock traded as high as $58.45 and last traded at $59.0890. 518,212 shares were traded during trading, a decline of 79% from the average daily volume of 2,417,951 shares. The stock had previously closed at $53.98.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on ALGM shares. Wall Street Zen cut shares of Allegro MicroSystems from a “buy” rating to a “hold” rating in a research note on Saturday, June 13th. Evercore restated an “outperform” rating and set a $53.00 price target on shares of Allegro MicroSystems in a report on Friday, May 8th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a research note on Thursday, May 7th. 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 report on Friday, May 8th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. Ten research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $51.80.

Allegro MicroSystems Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21. The stock’s 50 day moving average price is $46.26 and its two-hundred day moving average price is $37.38. The firm 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 announced its earnings results on Thursday, May 7th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.16 by $0.01. The firm had revenue of $243.19 million for the quarter, compared to the consensus estimate of $235.94 million. Allegro MicroSystems had a negative net margin of 1.67% and a positive return on equity of 6.09%. The business’s quarterly revenue was up 26.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.06 EPS. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. On average, equities research analysts anticipate that Allegro MicroSystems, Inc. will post 0.77 EPS for the current year.

Insider Buying and Selling

In other news, Director Susan D. Lynch sold 16,711 shares of Allegro MicroSystems stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $45.46, for a total value of $759,682.06. Following the transaction, the director directly owned 12,805 shares in the company, valued at approximately $582,115.30. The trade was a 56.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Ian Kent sold 2,642 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $41.56, for a total value of $109,801.52. Following the transaction, the senior vice president directly owned 25,392 shares of the company’s stock, valued at $1,055,291.52. This represents a 9.42% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 68,607 shares of company stock valued at $3,213,714 in the last quarter. Insiders own 0.40% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Parallel Advisors LLC boosted its position in shares of Allegro MicroSystems by 42.8% in the first 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 period. Kestra Advisory Services LLC bought a new position in Allegro MicroSystems during the fourth quarter worth $34,000. CIBC Private Wealth Group LLC raised its stake in Allegro MicroSystems by 14,844.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock valued at $35,000 after purchasing an additional 1,336 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in Allegro MicroSystems by 85.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock valued at $38,000 after purchasing an additional 669 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its holdings in Allegro MicroSystems by 815.4% in the 4th quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company’s stock valued at $57,000 after purchasing an additional 1,908 shares during the period. 56.45% of the stock is currently owned by institutional investors and hedge funds.

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.