Allegro MicroSystems (NASDAQ:ALGM) Issues Q2 2027 Earnings Guidance

Allegro MicroSystems (NASDAQ:ALGM) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 0.230-0.260 for the period, compared to the consensus earnings per share estimate of 0.230. The company issued revenue guidance of $265.0 million-$275.0 million, compared to the consensus revenue estimate of $264.5 million.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on ALGM shares. UBS Group lifted their price objective on Allegro MicroSystems from $52.00 to $55.00 and gave the company a “buy” rating in a research note on Friday, May 8th. Barclays downgraded shares of Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price objective on the stock. in a research report on Monday, July 20th. Jefferies Financial Group restated a “buy” rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a report on Thursday, May 7th. Wells Fargo & Company boosted their target price on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Finally, Mizuho cut their price target on Allegro MicroSystems from $67.00 to $58.00 and set an “outperform” rating on the stock in a research note on Friday. Nine analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Allegro MicroSystems presently has an average rating of “Moderate Buy” and a consensus price target of $52.80.

Allegro MicroSystems Stock Performance

NASDAQ ALGM opened at $41.50 on Friday. The business’s 50-day moving average price is $51.82 and its 200 day moving average price is $42.58. The company has a quick ratio of 2.21, a current ratio of 3.70 and a debt-to-equity ratio of 0.30. The firm has a market cap of $7.73 billion, a P/E ratio of 691.78 and a beta of 1.90. Allegro MicroSystems has a 52-week low of $22.41 and a 52-week high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM) last announced its earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.02. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%.The company had revenue of $259.24 million for the quarter, compared to the consensus estimate of $251.44 million. During the same period last year, the business posted $0.09 EPS. The company’s revenue was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. On average, equities research analysts expect that Allegro MicroSystems will post 0.77 earnings per share for the current year.

Insider Activity

In other Allegro MicroSystems news, SVP Richard Madormo sold 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $52.72, for a total transaction of $263,600.00. Following the transaction, the senior vice president owned 69,687 shares in the company, valued at approximately $3,673,898.64. The trade was a 6.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Michael Doogue sold 30,089 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $47.23, for a total transaction of $1,421,103.47. Following the sale, the chief executive officer directly owned 252,797 shares in the company, valued at approximately $11,939,602.31. This represents a 10.64% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 68,607 shares of company stock valued at $3,213,714 over the last ninety days. 0.50% of the stock is currently owned by company insiders.

Allegro MicroSystems News Summary

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

• Positive Sentiment: Allegro exceeded expectations with earnings of $0.23 per share versus the $0.21 consensus and revenue of $259.24 million versus $251.44 million. Revenue increased 27.5% year over year, while EPS rose substantially from $0.09 a year earlier. Allegro MicroSystems Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management issued second-quarter revenue guidance of $265 million to $275 million, above the $264.5 million consensus, and EPS guidance of $0.23 to $0.26, at or above expectations. Allegro MicroSystems Reports First Quarter 2027 Results
• Positive Sentiment: Record data-center sales, stronger bookings, expanding design wins and increased semiconductor content per system point to sustained AI infrastructure demand. Electrification and automation also provide additional growth opportunities. ALGM Q1 Earnings Call Highlights AI Data Center Growth
• Positive Sentiment: Needham raised its price target from $55 to $57 and maintained a Buy rating, implying substantial potential upside from the referenced $41.50 level.
• Neutral Sentiment: Despite the operating beat, Allegro reported a negative net margin of 1.67%, and the shares remain well below their 52-week high, suggesting investors may be weighing recovery potential against profitability and valuation risks.
• Negative Sentiment: Mizuho cut its price target from $67 to $58, although it retained an Outperform rating. TD Cowen also reduced its target from $66 to $48 while maintaining Buy. These reductions may limit enthusiasm by signaling more cautious assumptions despite the favorable results.

Hedge Funds Weigh In On Allegro MicroSystems

Several large investors have recently added to or reduced their stakes in ALGM. Invesco Ltd. lifted its holdings in shares of Allegro MicroSystems by 44.0% in the fourth quarter. Invesco Ltd. now owns 7,651,051 shares of the company’s stock valued at $201,835,000 after buying an additional 2,338,624 shares during the period. State Street Corp lifted its holdings in shares of Allegro MicroSystems by 1.5% during the fourth quarter. State Street Corp now owns 5,359,488 shares of the company’s stock valued at $141,383,000 after purchasing an additional 78,203 shares during the last quarter. Adage Capital Partners GP L.L.C. increased its stake in Allegro MicroSystems by 77.8% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company’s stock worth $73,968,000 after purchasing an additional 1,227,317 shares in the last quarter. Alliancebernstein L.P. boosted its holdings in shares of Allegro MicroSystems by 189.4% in the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company’s stock worth $94,360,000 after buying an additional 1,806,183 shares during the period. Finally, Geode Capital Management LLC increased its position in shares of Allegro MicroSystems by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 2,393,968 shares of the company’s stock worth $63,165,000 after acquiring an additional 24,839 shares in the last quarter. 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.