Allegro MicroSystems (NASDAQ:ALGM) Stock Breaks Above 50 Day Moving Average – Here’s Why

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s stock price crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $35.33 and traded as high as $35.62. Allegro MicroSystems shares last traded at $35.37, with a volume of 6,220,043 shares trading hands.

Allegro MicroSystems News Roundup

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Allegro reported second-quarter fiscal 2027 revenue of approximately $277 million, up 29% year over year and ahead of the roughly $271 million consensus estimate. Adjusted earnings were $0.26 per share, exceeding expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior-year period. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: Management highlighted record sales in industrial and other markets and data centers, along with improving inventory levels, stronger demand signals and ongoing design wins. These trends support the longer-term growth outlook, particularly in electrification, automation and data-center applications. ALGM Q3 Deep Dive
• Neutral Sentiment: Analysts remain broadly constructive, but several firms reduced their targets after the results: Wells Fargo to $40 from $45, UBS to $48 from $50, Barclays to $45 from $48, Mizuho to $46 from $58 and Needham to $50 from $57. Ratings remained positive or neutral, indicating expectations were reset rather than fully reversed. Analysts Cut Their Forecasts on Allegro MicroSystems
• Negative Sentiment: The stock’s decline reflects concerns that near-term demand may not be strong enough to justify prior valuation assumptions. Investors are also weighing capacity constraints, the pace of recovery across end markets and the possibility that the earnings beat will not translate into a materially higher outlook. Allegro MicroSystems Sinks Despite Earnings Beat

Analysts Set New Price Targets

Several research analysts have commented on the company. Wells Fargo & Company cut their target price on Allegro MicroSystems from $45.00 to $40.00 and set an “overweight” rating for the company in a research note on Friday. Wall Street Zen upgraded Allegro MicroSystems from a “hold” rating to a “buy” rating in a research report on Sunday, August 2nd. Benchmark began coverage on shares of Allegro MicroSystems in a report on Wednesday, August 12th. They issued a “buy” rating and a $60.00 price target on the stock. Morgan Stanley increased their price target on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. Finally, Mizuho cut their price objective on shares of Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating for the company in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Allegro MicroSystems currently has a consensus rating of “Moderate Buy” and an average target price of $49.33.

Allegro MicroSystems Trading Down 7.6%

The stock has a market cap of $5.69 billion, a P/E ratio of 203.55, a P/E/G ratio of 1.04 and a beta of 1.99. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.33 and a current ratio of 4.13. The stock has a 50-day moving average price of $35.09 and a 200-day moving average price of $40.66.

Allegro MicroSystems (NASDAQ:ALGM) last announced its earnings results on Thursday, October 29th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02. Allegro MicroSystems had a net margin of 3.07% and a return on equity of 10.34%. The business had revenue of $276.88 million for the quarter, compared to the consensus estimate of $270.86 million. During the same period last year, the firm posted $0.13 earnings per share. Allegro MicroSystems’s quarterly revenue was up 29.2% on a year-over-year basis. On average, equities research analysts expect that Allegro MicroSystems, Inc. will post 0.65 EPS for the current year.

Insider Transactions at Allegro MicroSystems

In related news, SVP Erin Hagen sold 2,285 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $44.39, for a total value of $101,431.15. Following the transaction, the senior vice president owned 31,052 shares of the company’s stock, valued at $1,378,398.28. This represents a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Allegro MicroSystems

Several hedge funds have recently added to or reduced their stakes in ALGM. BlackRock Inc. purchased a new position in Allegro MicroSystems in the 2nd quarter worth approximately $966,975,000. Bank of America Corp DE bought a new stake in Allegro MicroSystems in the second quarter valued at approximately $64,171,000. Bank of New York Mellon Corp purchased a new stake in shares of Allegro MicroSystems during the second quarter valued at approximately $49,914,000. Braun Stacey Associates Inc. purchased a new stake in shares of Allegro MicroSystems during the second quarter valued at approximately $25,515,000. Finally, S Squared Technology LLC purchased a new stake in shares of Allegro MicroSystems during the second quarter valued at approximately $23,145,239. Institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.