Allegro MicroSystems (NASDAQ:ALGM) Shares Up 6.9% After Analyst Upgrade

Allegro MicroSystems, Inc. (NASDAQ:ALGM) traded up 6.9% during mid-day trading on Thursday after Benchmark upgraded the stock to a strong-buy rating. The company traded as high as $45.67 and last traded at $45.4140. Approximately 719,279 shares changed hands during trading, a decline of 72% from the average daily volume of 2,595,618 shares. The stock had previously closed at $42.47.

A number of other brokerages have also recently issued reports on ALGM. 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 research report on Friday, May 8th. Mizuho reduced their price target on shares of Allegro MicroSystems from $67.00 to $58.00 and set an “outperform” rating on the stock in a research report on Friday, July 31st. Weiss Ratings raised shares of Allegro MicroSystems from a “sell (d-)” rating to a “sell (d+)” rating in a research note on Monday, August 3rd. Morgan Stanley upped their price objective on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Finally, Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, August 2nd. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $53.45.

Insider Buying and Selling at Allegro MicroSystems

In related news, SVP Richard Madormo sold 5,000 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total value of $263,600.00. Following the transaction, the senior vice president directly owned 69,687 shares in the company, valued at $3,673,898.64. This represents a 6.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Erin Hagen sold 2,285 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $44.39, for a total transaction of $101,431.15. Following the completion of the transaction, the senior vice president owned 31,052 shares in the company, valued at $1,378,398.28. This represents a 6.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 15,144 shares of company stock worth $708,972 over the last quarter. Company insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Allegro MicroSystems

Several large investors have recently bought and sold shares of ALGM. BlackRock Inc. acquired a new stake in Allegro MicroSystems in the second quarter worth $966,975,000. Bank of America Corp DE grew its holdings in shares of Allegro MicroSystems by 136.6% in the 3rd quarter. Bank of America Corp DE now owns 952,679 shares of the company’s stock valued at $27,818,000 after buying an additional 3,556,410 shares during the period. Invesco Ltd. grew its holdings in shares of Allegro MicroSystems by 44.0% in the 4th 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. Alliancebernstein L.P. increased its position in shares of Allegro MicroSystems by 189.4% in the 2nd quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company’s stock valued at $94,360,000 after buying an additional 1,806,183 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Allegro MicroSystems in the 4th quarter valued at $38,457,000. Institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Price Performance

The firm has a market cap of $8.27 billion, a price-to-earnings ratio of 739.96, a P/E/G ratio of 1.39 and a beta of 1.94. The company has a current ratio of 3.70, a quick ratio of 2.33 and a debt-to-equity ratio of 0.30. The company has a 50 day moving average of $50.48 and a 200 day moving average of $43.29.

Allegro MicroSystems (NASDAQ:ALGM) last posted its earnings results on Thursday, July 30th. The company reported $0.23 earnings per share for the quarter, topping 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 firm had revenue of $259.24 million for the quarter, compared to analyst estimates of $251.44 million. During the same period in the previous year, the company posted $0.09 earnings per share. The company’s revenue for the quarter was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Equities research analysts predict that Allegro MicroSystems, Inc. will post 0.65 EPS for the current fiscal year.

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.