Wells Fargo & Company Issues Pessimistic Forecast for Allegro MicroSystems (NASDAQ:ALGM) Stock Price

Allegro MicroSystems (NASDAQ:ALGM) had its target price cut by Wells Fargo & Company from $45.00 to $40.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has an “overweight” rating on the stock. Wells Fargo & Company‘s price objective indicates a potential upside of 32.63% from the company’s current price.

Other analysts also recently issued research reports about the company. Needham & Company LLC lowered their target price on Allegro MicroSystems from $57.00 to $50.00 and set a “buy” rating on the stock in a research report on Thursday. Wall Street Zen upgraded Allegro MicroSystems from a “hold” rating to a “buy” rating in a research note on Sunday, August 2nd. Mizuho dropped their price objective on Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating on the stock in a research note on Friday. Morgan Stanley boosted their target price on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. Finally, Benchmark began coverage on shares of Allegro MicroSystems in a research report on Wednesday, August 12th. They set a “buy” rating and a $60.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $49.33.

Allegro MicroSystems Stock Down 8.7%

NASDAQ:ALGM traded down $2.87 during trading hours on Friday, reaching $30.16. 2,080,192 shares of the stock were exchanged, compared to its average volume of 2,632,822. Allegro MicroSystems has a twelve month low of $22.41 and a twelve month high of $71.77. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.33. The firm has a 50 day moving average of $35.23 and a 200 day moving average of $40.66. The stock has a market cap of $5.62 billion, a PE ratio of 502.03, a PEG ratio of 1.11 and a beta of 1.99.

Allegro MicroSystems (NASDAQ:ALGM) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.02. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The business had revenue of $276.88 million for the quarter, compared to analyst estimates of $270.86 million. During the same quarter in the previous year, the firm posted $0.13 earnings per share. The firm’s revenue for the quarter was up 29.2% on a year-over-year basis. On average, equities analysts expect that Allegro MicroSystems will post 0.65 earnings per share for the current year.

Insider Activity at Allegro MicroSystems

In related news, SVP Erin Hagen sold 2,285 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $44.39, for a total value of $101,431.15. Following the transaction, the senior vice president owned 31,052 shares in the company, valued at approximately $1,378,398.28. This represents a 6.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Allegro MicroSystems

Institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of Allegro MicroSystems in the 2nd quarter valued at $966,975,000. Dimensional Fund Advisors LP boosted its stake in Allegro MicroSystems by 1.4% in the first 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 in the last quarter. Bank of America Corp DE bought a new position in Allegro MicroSystems in the second quarter valued at about $64,171,000. Wellington Management Group LLP grew 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 valued at $56,736,000 after acquiring an additional 141,841 shares during the last quarter. Finally, Principal Financial Group Inc. raised its stake in Allegro MicroSystems by 2.8% during the first quarter. Principal Financial Group Inc. now owns 1,790,466 shares of the company’s stock worth $56,453,000 after acquiring an additional 48,170 shares in the last quarter. Institutional investors own 56.45% of the company’s stock.

Key Stories Impacting Allegro MicroSystems

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 $270.9 million consensus estimate. EPS of $0.26 also exceeded expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior year. Industrial, other, and data-center sales reached records. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: The company said demand signals strengthened significantly and inventory levels improved, supporting the outlook for recovery in its semiconductor markets. Allegro MicroSystems Sinks Despite Earnings Beat
• Positive Sentiment: UBS maintained its Buy rating, reducing its price target modestly to $48 from $50, indicating continued confidence in Allegro’s longer-term potential. UBS Adjusts Price Target on Allegro MicroSystems
• Neutral Sentiment: Analysts continue to see substantial potential upside at the current price, but target prices were broadly reset lower following the results: Mizuho cut its target to $46 from $58 while retaining Outperform, and Needham reduced its target to $50 from $57 while keeping Buy.
• Negative Sentiment: Barclays lowered its target to $45 from $48 and assigned an Equal Weight rating. The series of forecast reductions appears to have outweighed the earnings beat in the near term, contributing to the stock’s decline. Analysts Cut Forecasts After Q2 Results

Allegro MicroSystems Company Profile

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.