Allegro MicroSystems (NASDAQ:ALGM) Stock Gets Price Target Cut from Needham & Company LLC

Allegro MicroSystems (NASDAQ:ALGM) had its price target decreased by Needham & Company LLC from $57.00 to $50.00 in a research report sent to investors on Thursday,Benzinga reports. Needham & Company LLC currently has a buy rating on the stock.

Several other research analysts have also issued reports on the company. Wall Street Zen raised Allegro MicroSystems from a “hold” rating to a “buy” rating in a research report on Sunday, August 2nd. Barclays downgraded 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. Morgan Stanley boosted their price target on Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Wells Fargo & Company dropped their price target on Allegro MicroSystems from $56.00 to $45.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 20th. Finally, Mizuho cut their price objective on shares of Allegro MicroSystems from $67.00 to $58.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $49.33.

Allegro MicroSystems Stock Performance

Shares of ALGM stock opened at $30.53 on Thursday. The business’s fifty day simple moving average is $35.09 and its 200-day simple moving average is $40.66. The company has a market cap of $5.69 billion, a PE ratio of 203.55, a PEG ratio of 0.96 and a beta of 1.99. The company has a current ratio of 4.13, a quick ratio of 2.33 and a debt-to-equity ratio of 0.28. Allegro MicroSystems has a 12-month low of $22.41 and a 12-month high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings data on Thursday, October 29th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.24 by $0.02. The firm had revenue of $276.88 million during the quarter, compared to analyst estimates of $270.86 million. Allegro MicroSystems had a return on equity of 10.34% and a net margin of 3.07%. The business’s revenue for the quarter was up 29.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.13 EPS. Analysts expect that Allegro MicroSystems will post 0.65 earnings per share for the current fiscal year.

Insider Activity at Allegro MicroSystems

In other news, SVP Erin Hagen sold 2,285 shares of the business’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $44.39, for a total transaction of $101,431.15. Following the sale, the senior vice president directly owned 31,052 shares of the company’s stock, valued at $1,378,398.28. The trade was a 6.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds have recently made changes to their positions in ALGM. Parallel Advisors LLC lifted its position in Allegro MicroSystems by 42.8% during the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock worth $32,000 after acquiring an additional 302 shares during the period. SBI Securities Co. Ltd. increased its holdings in shares of Allegro MicroSystems by 17.4% in the third quarter. SBI Securities Co. Ltd. now owns 2,059 shares of the company’s stock valued at $75,000 after purchasing an additional 305 shares during the period. Signaturefd LLC increased its holdings in shares of Allegro MicroSystems by 51.3% in the third quarter. Signaturefd LLC now owns 1,070 shares of the company’s stock valued at $39,000 after purchasing an additional 363 shares during the period. Transamerica Financial Advisors LLC acquired a new position in shares of Allegro MicroSystems in the second quarter valued at about $27,000. Finally, Rakuten Securities Inc. purchased a new position in shares of Allegro MicroSystems in the second quarter worth about $31,000. 56.45% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Allegro MicroSystems

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

• Positive Sentiment: Allegro reported second-quarter fiscal 2027 revenue of approximately $277 million, up 29% year over year and ahead of the roughly $271 million consensus estimate. Adjusted earnings were $0.26 per share, exceeding expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior-year period. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: Management highlighted record sales in industrial and other markets and data centers, along with improving inventory levels, stronger demand signals and ongoing design wins. These trends support the longer-term growth outlook, particularly in electrification, automation and data-center applications. ALGM Q3 Deep Dive
• Neutral Sentiment: Analysts remain broadly constructive, but several firms reduced their targets after the results: Wells Fargo to $40 from $45, UBS to $48 from $50, Barclays to $45 from $48, Mizuho to $46 from $58 and Needham to $50 from $57. Ratings remained positive or neutral, indicating expectations were reset rather than fully reversed. Analysts Cut Their Forecasts on Allegro MicroSystems
• Negative Sentiment: The stock’s decline reflects concerns that near-term demand may not be strong enough to justify prior valuation assumptions. Investors are also weighing capacity constraints, the pace of recovery across end markets and the possibility that the earnings beat will not translate into a materially higher outlook. Allegro MicroSystems Sinks Despite Earnings Beat

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.