Mizuho Issues Pessimistic Forecast for Allegro MicroSystems (NASDAQ:ALGM) Stock Price

Allegro MicroSystems (NASDAQ:ALGM) had its target price lowered by equities researchers at Mizuho from $67.00 to $58.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Mizuho’s price target points to a potential upside of 37.64% from the company’s current price.

Other research analysts have also recently issued research reports about the company. Jefferies Financial Group restated a “buy” rating and issued a $62.00 price target on shares of Allegro MicroSystems in a research report on Thursday, May 7th. Wells Fargo & Company boosted their price objective 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. Needham & Company LLC increased their price objective on shares of Allegro MicroSystems from $55.00 to $57.00 and gave the company a “buy” rating in a research note on Thursday. UBS Group raised their target price 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. Finally, Wall Street Zen cut shares of Allegro MicroSystems from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Nine equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $52.80.

Allegro MicroSystems Price Performance

Shares of ALGM traded up $0.69 on Friday, reaching $42.14. The stock had a trading volume of 1,541,480 shares, compared to its average volume of 2,637,684. The firm has a market capitalization of $7.85 billion, a PE ratio of -468.57 and a beta of 1.90. The company has a quick ratio of 2.21, a current ratio of 3.45 and a debt-to-equity ratio of 0.30. The firm has a 50-day moving average of $51.91 and a 200 day moving average of $42.59. Allegro MicroSystems has a twelve month low of $22.41 and a twelve month high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings data 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. The firm had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.Allegro MicroSystems’s quarterly revenue was up 27.5% on a year-over-year basis. During the same period last year, the business posted $0.09 EPS. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Sell-side analysts expect that Allegro MicroSystems will post 0.77 EPS for the current year.

Insiders Place Their Bets

In related news, CAO Roald Graham Webster sold 5,217 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $44.88, for a total value of $234,138.96. Following the completion of the transaction, the chief accounting officer owned 13,106 shares of the company’s stock, valued at approximately $588,197.28. The trade was a 28.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael Doogue sold 30,089 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $47.23, for a total transaction of $1,421,103.47. Following the completion of the transaction, the chief executive officer owned 252,797 shares in the company, valued at approximately $11,939,602.31. This trade represents a 10.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 68,607 shares of company stock valued at $3,213,714. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Allegro MicroSystems

Hedge funds and other institutional investors have recently modified their holdings of the company. Parallel Advisors LLC raised its position in shares of Allegro MicroSystems by 42.8% in the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after buying an additional 302 shares during the last quarter. Kestra Advisory Services LLC acquired a new stake in Allegro MicroSystems during the fourth quarter worth approximately $34,000. CIBC Private Wealth Group LLC grew its stake in Allegro MicroSystems by 14,844.4% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock worth $35,000 after acquiring an additional 1,336 shares during the period. Caitong International Asset Management Co. Ltd grew its stake in Allegro MicroSystems by 85.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock worth $38,000 after acquiring an additional 669 shares during the period. Finally, Farther Finance Advisors LLC raised its holdings in Allegro MicroSystems by 815.4% in the 4th quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company’s stock valued at $57,000 after acquiring an additional 1,908 shares during the last quarter. 56.45% of the stock is currently owned by hedge funds and other institutional investors.

Allegro MicroSystems News Summary

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

• Positive Sentiment: Quarterly results exceeded expectations: Allegro reported adjusted EPS of $0.23 versus the $0.21 consensus, while revenue rose 27.5% year over year to $259.24 million, ahead of the $251.44 million estimate. EPS increased from $0.09 in the prior-year quarter. Allegro MicroSystems Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Data-center momentum is accelerating: Management highlighted record data-center sales, stronger bookings, expanding design wins and increased semiconductor content opportunities tied to AI infrastructure, electrification and automation. These trends support expectations for continued growth and backlog expansion. ALGM Q1 Earnings Call Highlights AI Data Center Growth
• Positive Sentiment: Second-quarter guidance was solid: Allegro forecast EPS of $0.23–$0.26 and revenue of $265 million–$275 million, broadly above or in line with consensus estimates of $0.23 EPS and $264.5 million revenue. Margin improvement also provided an additional positive signal. Allegro MicroSystems Reports First Quarter 2027 Results
• Positive Sentiment: Needham raised its price target to $57 from $55 and maintained a Buy rating, implying substantial upside based on the recently quoted share price.
• Neutral Sentiment: Analyst commentary remains mixed. A fair-value assessment edged higher after the earnings report, but valuation opinions differ considerably. Allegro MicroSystems Stock Fair Value Edges Higher
• Negative Sentiment: TD Cowen cut its price target to $48 from $66, although it retained a Buy rating. The reduced target signals more cautious expectations and limits the near-term upside implied by the analyst’s forecast.

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.