Allegro MicroSystems (NASDAQ:ALGM) Upgraded by Wall Street Zen to “Buy” Rating

Wall Street Zen upgraded shares of Allegro MicroSystems (NASDAQ:ALGM) from a hold rating to a buy rating in a research report report published on Sunday morning.

ALGM has been the subject of a number of other research reports. Evercore reaffirmed an “outperform” rating and issued a $53.00 target price on shares of Allegro MicroSystems in a research report on Friday, May 8th. Mizuho decreased their price objective on Allegro MicroSystems from $67.00 to $58.00 and set an “outperform” rating for the company in a report on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. TD Cowen dropped their target price on Allegro MicroSystems from $66.00 to $48.00 and set a “buy” rating on the stock in a report on Friday. Finally, Wells Fargo & Company increased their price target on Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. 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 company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $52.80.

Allegro MicroSystems Price Performance

Shares of ALGM opened at $41.50 on Friday. The stock has a market capitalization of $7.73 billion, a P/E ratio of 691.78, a P/E/G ratio of 1.10 and a beta of 1.94. Allegro MicroSystems has a twelve month low of $22.41 and a twelve month high of $71.77. The company has a 50 day moving average of $51.82 and a 200-day moving average of $42.67. The company has a quick ratio of 2.33, a current ratio of 3.70 and a debt-to-equity ratio of 0.30.

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

Insider Activity at Allegro MicroSystems

In related news, 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 completion of the sale, the senior vice president directly owned 69,687 shares in the company, valued at approximately $3,673,898.64. This trade represents a 6.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Sharon Briansky sold 8,948 shares of Allegro MicroSystems stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $47.54, for a total value of $425,387.92. Following the transaction, the senior vice president owned 75,232 shares of the company’s stock, valued at $3,576,529.28. The trade was a 10.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 68,607 shares of company stock worth $3,213,714 over the last ninety days. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Allegro MicroSystems

Hedge funds have recently made changes to their positions in the business. Lecap Asset Management Ltd. acquired a new stake in shares of Allegro MicroSystems during the 4th quarter worth about $783,000. Norges Bank acquired a new position in Allegro MicroSystems in the 4th quarter valued at about $38,457,000. Lightrock Netherlands B.V. bought a new position in Allegro MicroSystems in the 4th quarter valued at about $9,349,000. Altfest L J & Co. Inc. bought a new position in Allegro MicroSystems in the 4th quarter valued at about $430,000. Finally, Maverick Capital Ltd. acquired a new stake in Allegro MicroSystems during the first quarter worth approximately $1,331,000. 56.45% of the stock is owned by institutional investors and hedge funds.

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.

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.