Allegro MicroSystems (NASDAQ:ALGM) Shares Up 9.2% – What’s Next?

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s share price was up 9.2% during mid-day trading on Monday . The company traded as high as $59.46 and last traded at $60.6120. Approximately 218,132 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 2,618,712 shares. The stock had previously closed at $55.49.

Analyst Ratings Changes

A number of brokerages have issued reports on ALGM. TD Cowen raised their target price on shares of Allegro MicroSystems from $55.00 to $70.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Needham & Company LLC upped their target price on Allegro MicroSystems from $45.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Wells Fargo & Company increased their price target on Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Jefferies Financial Group reissued a “buy” rating and issued a $62.00 price target on shares of Allegro MicroSystems in a report on Thursday, May 7th. Finally, Mizuho boosted their price objective on Allegro MicroSystems from $54.00 to $67.00 and gave the company an “outperform” rating in a research report on Monday, June 29th. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $55.60.

Allegro MicroSystems Stock Performance

The stock has a market cap of $11.34 billion, a price-to-earnings ratio of -674.41 and a beta of 1.90. The company’s 50 day simple moving average is $50.46 and its 200 day simple moving average is $39.70. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.21 and a current ratio of 3.45.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The firm had revenue of $243.19 million during the quarter, compared to the consensus estimate of $235.94 million. During the same period in the prior year, the firm posted $0.06 earnings per share. The firm’s revenue for the quarter was up 26.1% compared to the same quarter last year. 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 earnings per share for the current year.

Insider Transactions at Allegro MicroSystems

In other news, SVP Richard Madormo sold 5,000 shares of Allegro MicroSystems stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total value of $263,600.00. Following the transaction, the senior vice president directly owned 69,687 shares of the company’s stock, valued at $3,673,898.64. This trade represents a 6.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Sharon Briansky sold 8,948 shares of Allegro MicroSystems stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $47.54, for a total transaction of $425,387.92. Following the transaction, the senior vice president owned 75,232 shares in the company, valued at approximately $3,576,529.28. The trade was a 10.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 68,607 shares of company stock worth $3,213,714 in the last three months. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC raised its holdings in shares of 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 acquiring an additional 302 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Allegro MicroSystems in the 4th quarter valued at approximately $34,000. CIBC Private Wealth Group LLC increased its holdings in Allegro MicroSystems by 14,844.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock worth $35,000 after buying an additional 1,336 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in Allegro MicroSystems by 85.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock worth $38,000 after buying an additional 669 shares during the last quarter. Finally, Farther Finance Advisors LLC raised its position in Allegro MicroSystems by 815.4% during the fourth quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company’s stock valued at $57,000 after acquiring an additional 1,908 shares in the last quarter. Institutional investors and hedge funds 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.