Allegro MicroSystems (NASDAQ:ALGM) Upgraded to Buy at Zacks Investment Research

Allegro MicroSystems (NASDAQ:ALGM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday, Zacks.com reports. The brokerage currently has a $39.00 price target on the stock. Zacks Investment Research‘s price target indicates a potential upside of 13.04% from the company’s current price.

According to Zacks, “Allegro MicroSystems Inc. is a designer, developer, fabless manufacturer and marketer of sensor integrated circuits and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Its diverse product portfolio provides solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power-saving technologies for data centers and green energy applications. Allegro MicroSystems Inc. is based in Manchester, New Hampshire. “

A number of other research analysts have also recently weighed in on the company. Wells Fargo & Company lifted their target price on Allegro MicroSystems from $36.00 to $38.00 and gave the company an “overweight” rating in a report on Tuesday, September 21st. William Blair began coverage on Allegro MicroSystems in a report on Wednesday, June 30th. They issued an “outperform” rating on the stock. Finally, Mizuho lifted their target price on Allegro MicroSystems from $38.00 to $40.00 and gave the company a “buy” rating in a report on Friday, July 30th. Ten investment analysts have rated the stock with a buy rating, According to MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $34.89.

Shares of ALGM traded up $0.06 during mid-day trading on Monday, hitting $34.50. The company’s stock had a trading volume of 7,447 shares, compared to its average volume of 753,843. Allegro MicroSystems has a 1-year low of $16.78 and a 1-year high of $36.85. The firm has a market capitalization of $6.54 billion and a P/E ratio of 31.06. The firm has a 50-day simple moving average of $29.74 and a 200 day simple moving average of $27.45. The company has a current ratio of 3.80, a quick ratio of 3.11 and a debt-to-equity ratio of 0.04.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings results on Wednesday, July 28th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.02. The company had revenue of $188.14 million during the quarter, compared to the consensus estimate of $177.55 million. Allegro MicroSystems had a return on equity of 10.10% and a net margin of 6.74%. As a group, sell-side analysts predict that Allegro MicroSystems will post 0.63 EPS for the current fiscal year.

In related news, SVP Michael Doogue sold 8,913 shares of the business’s stock in a transaction dated Thursday, July 1st. The stock was sold at an average price of $27.34, for a total value of $243,681.42. Following the completion of the sale, the senior vice president now directly owns 74,602 shares of the company’s stock, valued at $2,039,618.68. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Thomas C. Jr. Teebagy sold 150,000 shares of the business’s stock in a transaction dated Friday, July 30th. The shares were sold at an average price of $27.10, for a total value of $4,065,000.00. Following the completion of the sale, the senior vice president now directly owns 65,198 shares of the company’s stock, valued at $1,766,865.80. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 639,601 shares of company stock worth $18,735,895. Corporate insiders own 26.90% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in shares of Allegro MicroSystems by 31.2% during the second quarter. Vanguard Group Inc. now owns 5,191,637 shares of the company’s stock valued at $143,807,000 after purchasing an additional 1,234,086 shares during the last quarter. Wells Fargo & Company MN grew its holdings in shares of Allegro MicroSystems by 34.8% during the second quarter. Wells Fargo & Company MN now owns 3,691,926 shares of the company’s stock valued at $102,267,000 after purchasing an additional 952,511 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Allegro MicroSystems by 22.1% during the second quarter. JPMorgan Chase & Co. now owns 3,424,393 shares of the company’s stock valued at $94,855,000 after purchasing an additional 620,572 shares during the last quarter. Clearbridge Investments LLC grew its holdings in shares of Allegro MicroSystems by 25.1% during the second quarter. Clearbridge Investments LLC now owns 3,403,002 shares of the company’s stock valued at $94,263,000 after purchasing an additional 683,534 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in shares of Allegro MicroSystems by 34.1% during the second quarter. Invesco Ltd. now owns 3,183,899 shares of the company’s stock valued at $88,194,000 after purchasing an additional 810,257 shares during the last quarter. 42.09% of the stock is owned by institutional investors.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, and regulator and LED driver ICs, as well as photonic and 3D sensing components, including photodiodes, eye-safe lasers and rangefinders, and readout ICs for LiDAR applications.

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