Allegro MicroSystems (NASDAQ:ALGM) Stock Price Up 6.2% – Should You Buy?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) shot up 6.2% during mid-day trading on Wednesday . The stock traded as high as $34.78 and last traded at $34.6720. 1,084,091 shares were traded during trading, a decline of 51% from the average session volume of 2,225,688 shares. The stock had previously closed at $32.66.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Barclays boosted their price target on Allegro MicroSystems from $30.00 to $35.00 and gave the stock an “overweight” rating in a report on Friday, October 31st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Allegro MicroSystems in a report on Monday, December 29th. Wall Street Zen upgraded Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. TD Cowen reaffirmed a “buy” rating on shares of Allegro MicroSystems in a research report on Friday, October 31st. Finally, Mizuho set a $38.00 price objective on shares of Allegro MicroSystems in a research note on Tuesday, December 16th. Eight investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $38.89.

Allegro MicroSystems Stock Up 7.3%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.48 and a current ratio of 3.89. The firm has a market capitalization of $6.49 billion, a P/E ratio of -219.09 and a beta of 1.61. The stock has a fifty day moving average price of $28.49 and a two-hundred day moving average price of $29.74.

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

Institutional Trading of Allegro MicroSystems

Several hedge funds have recently bought and sold shares of ALGM. Royal Bank of Canada grew its holdings in Allegro MicroSystems by 70.0% in the 1st quarter. Royal Bank of Canada now owns 117,923 shares of the company’s stock worth $2,964,000 after buying an additional 48,554 shares in the last quarter. AQR Capital Management LLC acquired a new stake in shares of Allegro MicroSystems during the first quarter valued at approximately $325,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Allegro MicroSystems by 31.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 354,610 shares of the company’s stock worth $8,911,000 after buying an additional 85,607 shares during the period. Public Employees Retirement System of Ohio boosted its position in Allegro MicroSystems by 6.1% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 38,956 shares of the company’s stock worth $1,332,000 after acquiring an additional 2,251 shares during the period. Finally, Lecap Asset Management Ltd. purchased a new position in Allegro MicroSystems during the second quarter valued at approximately $630,000. 56.45% of the stock is currently owned by institutional investors.

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.