Wells Fargo & Company Forecasts Strong Price Appreciation for Allegro MicroSystems (NASDAQ:ALGM) Stock

Allegro MicroSystems (NASDAQ:ALGM) had its price objective raised by research analysts at Wells Fargo & Company from $48.00 to $56.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Wells Fargo & Company‘s price target suggests a potential upside of 17.80% from the stock’s previous close.

Other analysts have also issued research reports about the company. Evercore reaffirmed an “outperform” rating and set a $53.00 price objective on shares of Allegro MicroSystems in a research note on Friday. Bank of America increased their price target on shares of Allegro MicroSystems from $36.00 to $39.00 and gave the stock a “buy” rating in a research note on Wednesday, January 21st. TD Cowen lifted their price target on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the company a “buy” rating in a report on Friday, January 30th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Allegro MicroSystems in a research report on Wednesday. Finally, Morgan Stanley raised Allegro MicroSystems from an “equal weight” rating to an “overweight” rating and set a $51.00 price target for the company in a research report on Friday, February 13th. Ten equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $50.70.

Allegro MicroSystems Trading Down 0.8%

NASDAQ:ALGM traded down $0.39 during trading hours on Friday, reaching $47.54. 669,018 shares of the stock were exchanged, compared to its average volume of 2,405,783. The company has a quick ratio of 2.39, a current ratio of 3.65 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $8.81 billion, a price-to-earnings ratio of -594.50 and a beta of 2.02. Allegro MicroSystems has a twelve month low of $21.41 and a twelve month high of $51.40. The business has a 50-day moving average of $36.43 and a two-hundred day moving average of $32.80.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.01. The business had revenue of $243.19 million for the quarter, compared to analysts’ expectations of $235.94 million. Allegro MicroSystems had a negative net margin of 1.57% and a positive return on equity of 4.35%. The business’s quarterly revenue was up 26.1% on a year-over-year basis. During the same quarter in the prior 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, equities analysts predict that Allegro MicroSystems will post 0.27 EPS for the current year.

Institutional Trading of Allegro MicroSystems

Institutional investors have recently added to or reduced their stakes in the business. Hantz Financial Services Inc. grew its position in shares of Allegro MicroSystems by 86.9% during the 3rd quarter. Hantz Financial Services Inc. now owns 901 shares of the company’s stock valued at $26,000 after buying an additional 419 shares during the last quarter. Quent Capital LLC acquired a new stake in shares of Allegro MicroSystems during the 3rd quarter worth approximately $28,000. Parallel Advisors LLC raised its position in shares of 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 purchasing an additional 302 shares during the period. Kestra Advisory Services LLC bought a new stake in shares of Allegro MicroSystems in the 4th quarter worth approximately $34,000. Finally, CIBC Private Wealth Group LLC lifted its holdings in shares of Allegro MicroSystems by 14,844.4% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock worth $35,000 after purchasing an additional 1,336 shares during the last quarter. Institutional investors own 56.45% of the company’s stock.

Key Headlines Impacting Allegro MicroSystems

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

• Positive Sentiment: Q4 beat on both EPS and revenue; quarterly revenue rose ~26% year-over-year, and EPS of $0.17 topped consensus — supports the stock’s rally on fundamentals. GlobeNewswire
• Positive Sentiment: Needham raised its price target to $55 and maintained a “buy” rating, signaling continued analyst optimism and potential upside. Benzinga
• Positive Sentiment: Mizuho raised its target to $54 with an “outperform” — another vote of confidence that can attract buyers. Benzinga
• Positive Sentiment: Independent analyst commentary (Morgan Stanley) suggests further upside potential for shares, which can support momentum. Morgan Stanley / Seeking Alpha
• Neutral Sentiment: Full earnings call transcript and slide deck are available for investors to check management commentary on demand, margins and backlog. Earnings Call Transcript
• Neutral Sentiment: Company posted formal results and materials (press release / slide deck) for review — useful for confirming guidance assumptions. Slide Deck / Press Release
• Negative Sentiment: Shares sold off in some coverage despite the beat-and-raise, as investors digested guidance that was roughly in line with expectations rather than above — indicates sensitivity to forward-looking metrics. MSN
• Negative Sentiment: Newsflow noted the company “sank” after providing guidance that investors viewed as merely in-line (Q1 FY27 EPS guidance 0.190–0.230 and revenue $245–255M), which limited upside and prompted profit-taking. Seeking Alpha
• Negative Sentiment: Market commentary explains why shares traded lower intraday despite beats — short-term trading dynamics and expectations around margin/guide improvements remain risk points. MSN

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.