Allegro MicroSystems (NASDAQ:ALGM) Shares Up 6.9% After Analyst Upgrade

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s stock price rose 6.9% during trading on Thursday after Benchmark upgraded the stock to a strong-buy rating. The stock traded as high as $45.67 and last traded at $45.4140. 719,279 shares changed hands during trading, a decline of 72% from the average session volume of 2,595,618 shares. The stock had previously closed at $42.47.

Several other equities analysts have also weighed in on the stock. Morgan Stanley increased their price objective on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. 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 research note on Monday, July 20th. TD Cowen dropped their target price on Allegro MicroSystems from $66.00 to $48.00 and set a “buy” rating for the company in a report on Friday, July 31st. Weiss Ratings upgraded shares of Allegro MicroSystems from a “sell (d-)” rating to a “sell (d+)” rating in a research note on Monday, August 3rd. Finally, Wall Street Zen upgraded shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research report on Sunday, August 2nd. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $53.45.

Insiders Place Their Bets

In other news, SVP Erin Hagen sold 2,285 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $44.39, for a total value of $101,431.15. Following 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Roald Graham Webster sold 5,217 shares of Allegro MicroSystems stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the sale, the chief accounting officer directly owned 13,106 shares in the company, valued at $588,197.28. This trade represents a 28.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 15,144 shares of company stock worth $708,972. Insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Lecap Asset Management Ltd. bought a new stake in Allegro MicroSystems during the 4th quarter worth $783,000. Norges Bank acquired a new stake in shares of Allegro MicroSystems during the fourth quarter valued at about $38,457,000. Maverick Capital Ltd. acquired a new position in shares of Allegro MicroSystems in the first quarter valued at approximately $1,331,000. Quantinno Capital Management LP raised its holdings in Allegro MicroSystems by 104.9% in the 1st quarter. Quantinno Capital Management LP now owns 133,902 shares of the company’s stock valued at $4,222,000 after buying an additional 68,549 shares during the last quarter. Finally, S Squared Technology LLC boosted its position in Allegro MicroSystems by 15.1% during the 4th quarter. S Squared Technology LLC now owns 457,451 shares of the company’s stock worth $12,068,000 after buying an additional 60,000 shares during the period. 56.45% of the stock is currently owned by institutional investors and hedge funds.

Allegro MicroSystems Stock Up 0.6%

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 stock has a market capitalization of $8.27 billion, a P/E ratio of 739.96, a price-to-earnings-growth ratio of 1.39 and a beta of 1.94. The stock’s fifty day simple moving average is $50.48 and its two-hundred day simple moving average is $43.29.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.02. The firm had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The company’s revenue for the quarter was up 27.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.09 earnings per share. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. As a group, research analysts expect that Allegro MicroSystems, Inc. will post 0.65 EPS for the current fiscal year.

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.