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

Allegro MicroSystems (NASDAQ:ALGM) had its target price reduced by stock analysts at TD Cowen from $66.00 to $48.00 in a report released on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. TD Cowen’s price objective would indicate a potential upside of 14.73% from the company’s current price.

A number of other brokerages also recently commented on ALGM. Wall Street Zen downgraded Allegro MicroSystems from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Evercore reiterated an “outperform” rating and set a $53.00 target price on shares of Allegro MicroSystems in a research report on Friday, May 8th. Wells Fargo & Company raised their price target on Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Barclays cut Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price target for the company. in a report on Monday, July 20th. Finally, UBS Group increased their price objective on shares of Allegro MicroSystems from $52.00 to $55.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Nine investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $53.60.

Allegro MicroSystems Trading Up 0.9%

NASDAQ ALGM traded up $0.39 during mid-day trading on Friday, reaching $41.84. 595,451 shares of the stock were exchanged, compared to its average volume of 2,631,723. Allegro MicroSystems has a 1-year low of $22.41 and a 1-year high of $71.77. The business’s fifty day simple moving average is $51.91 and its 200 day simple moving average is $42.59. The stock has a market capitalization of $7.79 billion, a PE ratio of -464.17 and a beta of 1.90. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.21 and a current ratio of 3.45.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly 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 positive return on equity of 6.09% and a negative net margin of 1.67%.The company had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. During the same period in the previous year, the firm posted $0.09 EPS. Allegro MicroSystems’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, research analysts anticipate that Allegro MicroSystems will post 0.77 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Michael Doogue sold 30,089 shares of Allegro MicroSystems stock in a transaction on 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 transaction, the chief executive officer owned 252,797 shares in the company, valued at approximately $11,939,602.31. The trade was a 10.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Richard Madormo sold 5,000 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The stock was 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 in the company, valued at approximately $3,673,898.64. This represents a 6.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 68,607 shares of company stock worth $3,213,714. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Handelsbanken Fonder AB boosted its holdings in Allegro MicroSystems by 49.7% in the 2nd quarter. Handelsbanken Fonder AB now owns 59,900 shares of the company’s stock worth $4,170,000 after acquiring an additional 19,900 shares during the period. Fulton Bank N.A. purchased a new position in shares of Allegro MicroSystems in the second quarter valued at $322,000. Harbor Investment Advisory LLC purchased a new position in shares of Allegro MicroSystems in the second quarter valued at $72,000. Parallel Advisors LLC grew its holdings in Allegro MicroSystems by 42.8% during the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after purchasing an additional 302 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in Allegro MicroSystems by 48.3% during the 1st quarter. Bank of America Corp DE now owns 855,453 shares of the company’s stock valued at $26,972,000 after purchasing an additional 278,798 shares in the last quarter. 56.45% of the stock is owned by institutional investors and hedge funds.

Key Allegro MicroSystems News

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 estimate and revenue of $259.24 million versus expectations of $251.44 million. Revenue increased 27.5% year over year, while EPS rose 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 rising semiconductor content opportunities tied to AI infrastructure. Electrification and industrial automation also contributed to the company’s growth outlook. ALGM Q1 Earnings Call Highlights AI Data Center Growth
• Positive Sentiment: Outlook topped revenue expectations: Fiscal Q2 2027 guidance calls for EPS of $0.23 to $0.26 and revenue of $265 million to $275 million, modestly ahead of consensus revenue expectations. Allegro MicroSystems Reports First Quarter 2027 Results
• Positive Sentiment: Analyst support improved: Needham raised its price target from $55 to $57 and maintained a Buy rating, implying substantial upside from recent trading levels.
• Neutral Sentiment: Fair-value estimates edged higher, but mixed analyst commentary suggests valuation and execution concerns remain alongside the company’s growth potential. Allegro MicroSystems Stock Fair Value Edges Higher

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.