Allegro MicroSystems (NASDAQ:ALGM) Stock Gets Price Target Reduction from Barclays

Allegro MicroSystems (NASDAQ:ALGM) had its price objective reduced by investment analysts at Barclays from $48.00 to $45.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Barclays‘s price objective would indicate a potential upside of 46.12% from the stock’s current price.

Several other research firms also recently issued reports on ALGM. Morgan Stanley lifted their price target on Allegro MicroSystems from $51.00 to $52.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Benchmark started coverage on Allegro MicroSystems in a research report on Wednesday, August 12th. They set a “buy” rating and a $60.00 price target for the company. Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research note on Sunday, August 2nd. TD Cowen lowered their price objective on shares of Allegro MicroSystems from $48.00 to $40.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. Finally, Mizuho decreased their price objective on shares of Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating on the stock in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Allegro MicroSystems currently has an average rating of “Moderate Buy” and an average price target of $49.75.

Allegro MicroSystems Stock Down 6.8%

NASDAQ:ALGM opened at $30.80 on Friday. The stock’s fifty day moving average price is $35.23 and its two-hundred day moving average price is $40.66. Allegro MicroSystems has a 52-week low of $22.41 and a 52-week high of $71.77. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.33 and a current ratio of 3.70. The company has a market cap of $5.74 billion, a price-to-earnings ratio of 520.54, a P/E/G ratio of 1.11 and a beta of 1.99.

Allegro MicroSystems (NASDAQ:ALGM) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02. The firm had revenue of $276.88 million for the quarter, compared to analysts’ expectations of $270.86 million. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The business’s revenue for the quarter was up 29.2% on a year-over-year basis. During the same period last year, the firm earned $0.13 earnings per share. On average, analysts anticipate that Allegro MicroSystems will post 0.65 EPS for the current year.

Insider Transactions at Allegro MicroSystems

In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $44.39, for a total transaction of $101,431.15. Following the completion of the sale, the senior vice president directly owned 31,052 shares in the company, valued at approximately $1,378,398.28. This trade represents a 6.85% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 0.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Allegro MicroSystems

A number of institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of Allegro MicroSystems in the 2nd quarter worth about $966,975,000. Dimensional Fund Advisors LP increased its stake in Allegro MicroSystems by 1.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,170,487 shares of the company’s stock valued at $68,399,000 after buying an additional 30,340 shares during the last quarter. Principal Financial Group Inc. lifted its position in shares of Allegro MicroSystems by 2.8% during the 1st quarter. Principal Financial Group Inc. now owns 1,790,466 shares of the company’s stock worth $56,453,000 after buying an additional 48,170 shares in the last quarter. Bank of America Corp DE bought a new position in shares of Allegro MicroSystems during the 2nd quarter worth approximately $64,171,000. Finally, Wellington Management Group LLP lifted its position in shares of Allegro MicroSystems by 21.1% during the 2nd quarter. Wellington Management Group LLP now owns 814,937 shares of the company’s stock worth $56,736,000 after buying an additional 141,841 shares in the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

More Allegro MicroSystems News

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

• Positive Sentiment: Allegro reported second-quarter revenue of approximately $277 million, up 29% year over year and ahead of the $270.86 million consensus estimate. EPS of $0.26 also topped expectations of $0.24 and doubled from $0.13 a year earlier. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: Record sales in the industrial and other businesses, as well as data-center growth, helped drive the quarter. GAAP EPS quadrupled year over year, indicating substantial operating improvement despite the company’s still-low 1.50% net margin. Allegro MicroSystems surprises with Q3 sales
• Positive Sentiment: Improving inventory levels could support more balanced supply-chain conditions and reduce a prior overhang on customer demand. Separately, Conestoga SMid Cap initiated a position, citing rising chip content from vehicle electrification, driver-assistance systems and other automotive electronics.
• Neutral Sentiment: Mizuho retained an “outperform” rating and Needham retained a “buy” rating, indicating that analysts still see meaningful long-term upside. However, both firms reduced their targets: Mizuho cut its target from $58 to $46, while Needham lowered its target from $57 to $50. Analysts cut forecasts after Q2 results
• Negative Sentiment: The price-target cuts are likely offsetting the earnings beat and signaling that analysts believe some of Allegro’s expected growth is already reflected in the valuation. With the shares trading well below their 50-day and 200-day moving averages and at a very high reported price-to-earnings ratio, investors may remain cautious despite the improved results.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.