Wall Street Zen Upgrades Allegro MicroSystems (NASDAQ:ALGM) to Buy

Allegro MicroSystems (NASDAQ:ALGM) was upgraded by investment analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Sunday.

Several other research firms have also commented on ALGM. Evercore ISI increased their target price on shares of Allegro MicroSystems from $37.00 to $49.00 and gave the company an “outperform” rating in a research note on Friday, October 31st. UBS Group lifted their target price on Allegro MicroSystems from $38.00 to $40.00 and gave the stock a “buy” rating in a report on Friday, October 31st. Mizuho set a $38.00 price objective on Allegro MicroSystems in a report on Tuesday, December 16th. Barclays upped their price objective on shares of Allegro MicroSystems from $30.00 to $35.00 and gave the company an “overweight” rating in a research note on Friday, October 31st. Finally, Cowen restated a “buy” rating on shares of Allegro MicroSystems in a report on Friday, October 31st. Nine research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $38.78.

Allegro MicroSystems Price Performance

Shares of NASDAQ:ALGM opened at $33.35 on Friday. The stock has a market cap of $6.17 billion, a price-to-earnings ratio of -208.44 and a beta of 1.61. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.89 and a quick ratio of 2.48. Allegro MicroSystems has a 12 month low of $16.38 and a 12 month high of $38.45. The stock’s 50 day moving average price is $27.51 and its 200 day moving average price is $29.88.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.12 by $0.01. Allegro MicroSystems had a positive return on equity of 2.90% and a negative net margin of 3.60%.The company had revenue of $214.29 million for the quarter, compared to the consensus estimate of $210.75 million. During the same quarter in the previous year, the business earned $0.08 EPS. The company’s quarterly revenue was up 14.4% compared to the same quarter last year. Allegro MicroSystems has set its Q3 2026 guidance at 0.120-0.160 EPS. Equities research analysts anticipate that Allegro MicroSystems will post 0.01 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Allegro MicroSystems

A number of hedge funds have recently added to or reduced their stakes in the company. Hantz Financial Services Inc. grew its position in Allegro MicroSystems by 86.9% in the third quarter. Hantz Financial Services Inc. now owns 901 shares of the company’s stock worth $26,000 after acquiring an additional 419 shares in the last quarter. Quent Capital LLC bought a new stake in Allegro MicroSystems in the third quarter worth $28,000. UMB Bank n.a. increased its position in Allegro MicroSystems by 29.2% during the second quarter. UMB Bank n.a. now owns 1,835 shares of the company’s stock worth $63,000 after buying an additional 415 shares during the last quarter. NewEdge Advisors LLC lifted its position in shares of Allegro MicroSystems by 12,315.0% in the third quarter. NewEdge Advisors LLC now owns 2,483 shares of the company’s stock worth $73,000 after buying an additional 2,463 shares during the last quarter. Finally, Nisa Investment Advisors LLC boosted its stake in shares of Allegro MicroSystems by 158.8% during the 2nd quarter. Nisa Investment Advisors LLC now owns 2,210 shares of the company’s stock worth $76,000 after acquiring an additional 1,356 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.