Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Down – Here’s Why

Allegro MicroSystems, Inc. (NASDAQ:ALGM) gapped down before the market opened on Thursday . The stock had previously closed at $51.37, but opened at $43.90. Allegro MicroSystems shares last traded at $47.3020, with a volume of 967,292 shares.

Key Allegro MicroSystems News

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

• Positive Sentiment: Q4 results beat estimates: Allegro reported $0.17 EPS vs. consensus $0.16 and revenue of $243.2M vs. $235.9M, showing a clear revenue and EPS beat that supports near-term momentum. Allegro MicroSystems, Inc. (ALGM) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Strong revenue growth and FY scale: Q4 sales were up ~26% YoY and fiscal‑year 2026 sales rose ~23% to $890M — evidence of demand traction in its automotive and industrial end markets. Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Guidance roughly in line: Management set Q1 FY27 EPS guidance of $0.190–$0.230 and revenue guidance of $245–$255M, which overlaps consensus (EPS consensus ~$0.190; revenue consensus ~$246.6M) — guidance that reduces downside surprise risk. Earnings / Guidance Details and Conference Call
• Neutral Sentiment: Analyst stance and coverage: Consensus analyst sentiment is modestly constructive (consensus “Moderate Buy”), which supports interest but doesn’t imply strong upgrade-driven buying. Analyst Consensus: Moderate Buy
• Neutral Sentiment: Valuation context: Recent sector rally and rising optimism have prompted valuation re-checks; investors are balancing growth versus cyclical/valuation risk for semiconductor suppliers. Valuation Check After Sector Rally
• Negative Sentiment: Profitability and margin concerns: Despite revenue growth, Allegro reported a negative net margin (-1.57%) and modest ROE, which can make investors sensitive to any signals that margin recovery will be slow or that costs/one‑offs pressured results. Earnings / Margin Details

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on ALGM shares. UBS Group upped their target price on Allegro MicroSystems from $40.00 to $44.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. Bank of America upped their target price on Allegro MicroSystems from $36.00 to $39.00 and gave the stock a “buy” rating in a research note on Wednesday, January 21st. Wells Fargo & Company upped their price target on shares of Allegro MicroSystems from $45.00 to $48.00 and gave the stock an “overweight” rating in a report on Wednesday, February 11th. Wall Street Zen raised Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Finally, Needham & Company LLC upped their target price on Allegro MicroSystems from $41.00 to $45.00 and gave the stock a “buy” rating in a report on Thursday, February 19th. Ten investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $45.00.

Allegro MicroSystems Price Performance

The stock has a market cap of $8.87 billion, a P/E ratio of -598.34 and a beta of 2.02. The business has a 50-day simple moving average of $36.25 and a 200 day simple moving average of $32.67. The company has a current ratio of 3.65, a quick ratio of 2.39 and a debt-to-equity ratio of 0.30.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01. The company had revenue of $243.19 million during the quarter, compared to the consensus estimate of $235.94 million. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.The firm’s revenue was up 26.1% compared to the same quarter last year. During the same period last year, the company earned $0.06 earnings per share. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. On average, analysts forecast that Allegro MicroSystems, Inc. will post 0.27 earnings per share for the current year.

Institutional Investors Weigh In On Allegro MicroSystems

A number of institutional investors have recently modified their holdings of the company. Parallel Advisors LLC raised its stake in Allegro MicroSystems by 42.8% during the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock worth $32,000 after buying an additional 302 shares during the last quarter. PNC Financial Services Group Inc. boosted its position in Allegro MicroSystems by 2.7% during the third quarter. PNC Financial Services Group Inc. now owns 14,713 shares of the company’s stock valued at $430,000 after acquiring an additional 381 shares during the last quarter. Hantz Financial Services Inc. grew its holdings in Allegro MicroSystems by 86.9% during the 3rd quarter. Hantz Financial Services Inc. now owns 901 shares of the company’s stock worth $26,000 after acquiring an additional 419 shares during the period. Vanguard Personalized Indexing Management LLC grew its holdings in Allegro MicroSystems by 3.0% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company’s stock worth $376,000 after acquiring an additional 419 shares during the period. Finally, Advisors Asset Management Inc. raised its position in shares of Allegro MicroSystems by 2.1% in the 3rd quarter. Advisors Asset Management Inc. now owns 22,499 shares of the company’s stock worth $657,000 after acquiring an additional 466 shares in the last quarter. 56.45% of the stock is owned by institutional investors.

Allegro MicroSystems Company Profile

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.