Allegro MicroSystems (NASDAQ:ALGM) Stock Price Up 9.2% – Time to Buy?

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares traded up 9.2% during mid-day trading on Monday . The company traded as high as $59.46 and last traded at $60.6120. 218,132 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 2,618,712 shares. The stock had previously closed at $55.49.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on ALGM shares. UBS Group upped their price objective on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the company a “buy” rating in a report on Friday, May 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. TD Cowen increased their price target on shares of Allegro MicroSystems from $55.00 to $70.00 and gave the company a “buy” rating in a research note on Monday, June 22nd. Barclays raised their price target on shares of Allegro MicroSystems from $46.00 to $48.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday, May 7th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $55.60.

Allegro MicroSystems Stock Performance

The firm’s fifty day moving average is $50.87 and its 200-day moving average is $40.10. The company has a current ratio of 3.45, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $9.60 billion, a PE ratio of -572.71 and a beta of 1.90.

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, beating analysts’ consensus estimates of $0.16 by $0.01. Allegro MicroSystems had a negative net margin of 1.67% and a positive return on equity of 6.09%. The business had revenue of $243.19 million during the quarter, compared to analysts’ expectations of $235.94 million. During the same period last year, the business earned $0.06 earnings per share. The business’s revenue for the quarter was up 26.1% on a year-over-year basis. 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 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO Roald Graham Webster sold 5,217 shares of the business’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $44.88, for a total value of $234,138.96. Following the sale, the chief accounting officer owned 13,106 shares in the company, valued at approximately $588,197.28. The trade was a 28.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Susan D. Lynch sold 16,711 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total value of $759,682.06. Following the completion of the sale, the director owned 12,805 shares in the company, valued at $582,115.30. This represents a 56.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 68,607 shares of company stock valued at $3,213,714 over the last quarter. 0.50% of the stock is owned by corporate insiders.

Institutional Trading of Allegro MicroSystems

A number of institutional investors and hedge funds have recently bought and sold shares of ALGM. Lecap Asset Management Ltd. acquired a new stake in Allegro MicroSystems during the 4th quarter worth approximately $783,000. Norges Bank acquired a new position in shares of Allegro MicroSystems in the fourth quarter worth $38,457,000. Capital Research Global Investors increased its position 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 acquiring an additional 920,365 shares during the period. Lightrock Netherlands B.V. acquired a new stake in shares of Allegro MicroSystems in the fourth quarter valued at $9,349,000. Finally, Hel Ved Capital Management Ltd acquired a new stake in shares of Allegro MicroSystems in the fourth quarter valued at $1,658,000. 56.45% of the stock is currently owned by hedge funds and other 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.