Allegro MicroSystems (NASDAQ:ALGM) Stock Price Up 9.5% – Should You Buy?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) were up 9.5% during mid-day trading on Thursday . The company traded as high as $58.45 and last traded at $59.0890. Approximately 518,212 shares were traded during trading, a decline of 79% from the average daily volume of 2,417,951 shares. The stock had previously closed at $53.98.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on ALGM shares. Mizuho boosted their price objective on shares of Allegro MicroSystems from $44.00 to $54.00 and gave the company an “outperform” rating in a research report on Friday, May 8th. UBS Group boosted their price objective on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Wall Street Zen downgraded shares of Allegro MicroSystems from a “buy” rating to a “hold” rating in a research report on Saturday, June 13th. Wells Fargo & Company boosted their price objective on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Allegro MicroSystems in a research note on Wednesday, May 6th. Ten equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $51.80.

Allegro MicroSystems Price Performance

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 firm has a market cap of $10.83 billion, a PE ratio of -643.28 and a beta of 1.98. The stock has a 50 day simple moving average of $45.28 and a 200-day simple moving average of $37.00.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The business had revenue of $243.19 million during the quarter, compared to analyst estimates of $235.94 million. During the same quarter in the prior year, the business posted $0.06 EPS. Allegro MicroSystems’s revenue for the quarter was up 26.1% compared to the same quarter last year. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. Equities analysts anticipate that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Susan D. Lynch sold 16,711 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $45.46, for a total transaction of $759,682.06. Following the completion of the transaction, the director owned 12,805 shares in the company, valued at $582,115.30. This trade represents a 56.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Richard Madormo sold 5,000 shares of the firm’s stock in a transaction dated 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 owned 69,687 shares of the company’s stock, valued at approximately $3,673,898.64. The trade was a 6.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 68,607 shares of company stock worth $3,213,714 in the last three months. 0.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Capital Research Global Investors boosted its position in shares of Allegro MicroSystems by 5.8% during the 3rd quarter. Capital Research Global Investors now owns 16,824,722 shares of the company’s stock valued at $491,282,000 after acquiring an additional 920,365 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of Allegro MicroSystems by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 14,293,465 shares of the company’s stock valued at $417,369,000 after acquiring an additional 87,526 shares during the last quarter. Invesco Ltd. boosted its position in shares of Allegro MicroSystems by 44.0% during the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company’s stock valued at $201,835,000 after acquiring an additional 2,338,624 shares during the last quarter. State Street Corp boosted its position in shares of Allegro MicroSystems by 1.5% during the 4th quarter. State Street Corp now owns 5,359,488 shares of the company’s stock valued at $141,383,000 after acquiring an additional 78,203 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. boosted its position in shares of Allegro MicroSystems by 77.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company’s stock valued at $73,968,000 after acquiring an additional 1,227,317 shares during the last quarter. Hedge funds and other institutional investors own 56.45% of the company’s stock.

Allegro MicroSystems Company Profile

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.