Allegro MicroSystems (NASDAQ:ALGM) Releases Q2 2027 Earnings Guidance

Allegro MicroSystems (NASDAQ:ALGM) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.230-0.260 for the period, compared to the consensus EPS estimate of 0.230. The company issued revenue guidance of $265.0 million-$275.0 million, compared to the consensus revenue estimate of $264.5 million.

Allegro MicroSystems Trading Down 1.8%

Shares of NASDAQ ALGM traded down $0.76 during trading hours on Thursday, reaching $41.45. The stock had a trading volume of 6,152,679 shares, compared to its average volume of 2,646,623. Allegro MicroSystems has a 52-week low of $22.41 and a 52-week high of $71.77. The firm has a market cap of $7.72 billion, a price-to-earnings ratio of -460.50 and a beta of 1.90. The business’s fifty day moving average price is $51.97 and its two-hundred day moving average price is $42.52. The company has a current ratio of 3.45, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.21 by $0.02. The company had revenue of $259.24 million for the quarter, compared to the consensus estimate of $251.44 million. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.Allegro MicroSystems’s quarterly revenue was up 27.5% on a year-over-year basis. During the same period last year, the business posted $0.09 EPS. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Analysts expect that Allegro MicroSystems will post 0.77 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. UBS Group raised their price target on Allegro MicroSystems from $52.00 to $55.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Wells Fargo & Company upped their price objective on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Mizuho increased their target price on shares of Allegro MicroSystems from $54.00 to $67.00 and gave the stock an “outperform” rating in a report on Monday, June 29th. Evercore reissued an “outperform” rating and set a $53.00 target price on shares of Allegro MicroSystems in a research report on Friday, May 8th. Finally, Barclays lowered shares of Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price target for the company. in a report on Monday, July 20th. Nine research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $55.40.

Insider Activity at Allegro MicroSystems

In other Allegro MicroSystems news, SVP Ian Kent sold 2,642 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $41.56, for a total transaction of $109,801.52. Following the completion of the sale, the senior vice president directly owned 25,392 shares of the company’s stock, valued at approximately $1,055,291.52. This represents a 9.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Richard Madormo sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total transaction of $263,600.00. Following the completion of the sale, the senior vice president owned 69,687 shares in the company, valued at $3,673,898.64. This represents a 6.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 68,607 shares of company stock valued at $3,213,714 over the last 90 days. Company insiders own 0.50% of the company’s stock.

Key Stories Impacting Allegro MicroSystems

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

• Positive Sentiment: Quarterly earnings and revenue beat estimates: Allegro reported fiscal first-quarter 2027 EPS of $0.23, above the $0.21 consensus and up from $0.09 a year earlier. Revenue reached $259.24 million, exceeding the $251.44 million estimate and rising 27.5% year over year. Allegro MicroSystems beats Q1 earnings and revenue estimates
• Positive Sentiment: Forward guidance was slightly ahead of expectations: Management forecast fiscal-second-quarter EPS of $0.23 to $0.26, compared with the $0.23 analyst consensus, and revenue of $265 million to $275 million versus expectations of $264.5 million. Allegro MicroSystems reports first-quarter 2027 results
• Positive Sentiment: Analyst sentiment improved: Needham raised its price target from $55 to $57 and assigned a “Buy” rating. The new target represents approximately 37.5% potential upside from the cited $41.45 reference price.
• Neutral Sentiment: The results reinforce Allegro’s growth momentum in power and sensing semiconductor solutions, but the company still reported a negative net margin, which could temper enthusiasm until profitability improves.
• Negative Sentiment: The weaker share-price reaction, despite the earnings beat and upbeat guidance, suggests the strong results may have been largely anticipated. Elevated trading volume also points to heightened selling or “sell-the-news” activity.

Institutional Investors Weigh In On Allegro MicroSystems

A number of hedge funds and other institutional investors have recently bought and sold shares of ALGM. Vanguard Personalized Indexing Management LLC grew its holdings in Allegro MicroSystems by 3.0% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company’s stock worth $376,000 after purchasing an additional 419 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in shares of 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. Bank of Montreal Can lifted its holdings in shares of Allegro MicroSystems by 5.8% during the 4th quarter. Bank of Montreal Can now owns 14,075 shares of the company’s stock valued at $371,000 after purchasing an additional 770 shares during the last quarter. Alps Advisors Inc. boosted its position in shares of Allegro MicroSystems by 2.8% in the 4th quarter. Alps Advisors Inc. now owns 29,789 shares of the company’s stock worth $786,000 after purchasing an additional 806 shares in the last quarter. Finally, Advisors Asset Management Inc. boosted its position in shares of Allegro MicroSystems by 5.5% in the 4th quarter. Advisors Asset Management Inc. now owns 23,744 shares of the company’s stock worth $626,000 after purchasing an additional 1,245 shares in the last quarter. Hedge funds and other institutional investors own 56.45% of the company’s stock.

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.