Allegro MicroSystems (NASDAQ:ALGM) Trading 8.6% Higher – Should You Buy?

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s stock price traded up 8.6% on Thursday . The company traded as high as $60.28 and last traded at $60.16. Approximately 1,322,772 shares traded hands during trading, a decline of 46% from the average daily volume of 2,461,804 shares. The stock had previously closed at $55.42.

Analysts Set New Price Targets

ALGM has been the topic of a number of recent research reports. Needham & Company LLC lifted their price objective on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, May 7th. TD Cowen increased their target price on shares of Allegro MicroSystems from $55.00 to $70.00 and gave the stock a “buy” rating in a report on Monday. Wells Fargo & Company increased their target price on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research report on Sunday. Finally, UBS Group lifted their price target on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Ten equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Allegro MicroSystems presently has a consensus rating of “Moderate Buy” and an average price target of $54.30.

Allegro MicroSystems Stock Performance

The company has a market capitalization of $11.11 billion, a P/E ratio of -663.56 and a beta of 1.98. The stock’s fifty day moving average price is $47.46 and its 200-day moving average price is $38.08. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.21 and a current ratio of 3.45.

Allegro MicroSystems (NASDAQ:ALGM) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The firm had revenue of $243.19 million for the quarter, compared to the consensus estimate of $235.94 million. During the same quarter in the previous year, the business earned $0.06 earnings per share. The business’s revenue was up 26.1% compared to the same quarter last year. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. As a group, research analysts anticipate that Allegro MicroSystems, Inc. will post 0.77 EPS for the current fiscal year.

Insider Activity

In other news, CAO Roald Graham Webster sold 5,217 shares of the firm’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $44.88, for a total transaction of $234,138.96. Following the completion of the sale, the chief accounting officer owned 13,106 shares in the company, valued at approximately $588,197.28. This trade represents a 28.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Susan D. Lynch sold 16,711 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $45.46, for a total transaction of $759,682.06. Following the sale, the director owned 12,805 shares of the company’s stock, valued at approximately $582,115.30. This represents a 56.62% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ALGM. Vanguard Group Inc. lifted its holdings in Allegro MicroSystems by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 14,293,465 shares of the company’s stock worth $417,369,000 after purchasing an additional 87,526 shares during the last quarter. Lecap Asset Management Ltd. bought a new position in Allegro MicroSystems during the 4th quarter worth $783,000. Royce & Associates LP bought a new position in Allegro MicroSystems during the 3rd quarter worth $2,985,000. Norges Bank acquired a new stake in shares of Allegro MicroSystems during the fourth quarter worth $38,457,000. Finally, Capital Research Global Investors lifted its holdings in shares of Allegro MicroSystems by 5.8% during the third quarter. Capital Research Global Investors now owns 16,824,722 shares of the company’s stock worth $491,282,000 after buying an additional 920,365 shares in the last quarter. 56.45% of the stock is 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.