Allegro MicroSystems (NASDAQ:ALGM) Price Target Cut to $45.00 by Analysts at Barclays

Allegro MicroSystems (NASDAQ:ALGM) had its target price reduced by Barclays from $48.00 to $45.00 in a research report released on Friday morning,Benzinga reports. Barclays currently has an equal weight rating on the stock.

Several other research firms also recently commented on ALGM. Benchmark started coverage on shares of Allegro MicroSystems in a report on Wednesday, August 12th. They set a “buy” rating and a $60.00 price objective for the company. Morgan Stanley lifted their target price on Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. Mizuho reduced their target price on Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating on the stock in a report on Friday. Weiss Ratings downgraded Allegro MicroSystems from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 23rd. Finally, TD Cowen dropped their price target on Allegro MicroSystems from $48.00 to $40.00 and set a “buy” rating for the company in a research note on Monday, October 19th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $49.33.

Allegro MicroSystems Price Performance

ALGM stock opened at $30.53 on Friday. Allegro MicroSystems has a one year low of $22.41 and a one year high of $71.77. The company’s fifty day moving average price is $35.09 and its 200-day moving average price is $40.66. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.33 and a current ratio of 4.13. The company has a market capitalization of $5.69 billion, a PE ratio of 203.55, a price-to-earnings-growth ratio of 1.04 and a beta of 1.99.

Allegro MicroSystems (NASDAQ:ALGM) last issued its earnings results on Thursday, October 29th. The company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates 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 net margin of 3.07% and a return on equity of 10.34%. Allegro MicroSystems’s revenue for the quarter was up 29.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.13 earnings per share. On average, equities analysts anticipate that Allegro MicroSystems will post 0.65 EPS for the current fiscal year.

Insider Transactions at Allegro MicroSystems

In related news, SVP Erin Hagen sold 2,285 shares of the company’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 owned 31,052 shares of the company’s stock, valued at $1,378,398.28. This represents a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Allegro MicroSystems

Large investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of Allegro MicroSystems during the 2nd quarter valued at approximately $966,975,000. Dimensional Fund Advisors LP raised its holdings in Allegro MicroSystems by 1.4% during 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 period. Bank of America Corp DE purchased a new stake in Allegro MicroSystems during the 2nd quarter valued at $64,171,000. Wellington Management Group LLP lifted its position in Allegro MicroSystems by 21.1% in the second 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 during the last quarter. Finally, Principal Financial Group Inc. lifted its position in Allegro MicroSystems by 2.8% in the first 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 during the last quarter. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems News Summary

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

About Allegro MicroSystems

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.