Allegro MicroSystems (NASDAQ:ALGM) Trading 6.2% Higher – Time to Buy?

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) shot up 6.2% during mid-day trading on Wednesday . The company traded as high as $34.78 and last traded at $34.6720. 1,084,091 shares were traded during trading, a decline of 51% from the average session volume of 2,225,688 shares. The stock had previously closed at $32.66.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on ALGM shares. Weiss Ratings restated a “sell (e+)” rating on shares of Allegro MicroSystems in a research note on Monday, December 29th. UBS Group raised their target price on Allegro MicroSystems from $38.00 to $40.00 and gave the stock a “buy” rating in a report on Friday, October 31st. Bank of America lifted their price objective on shares of Allegro MicroSystems from $36.00 to $39.00 and gave the company a “buy” rating in a report on Wednesday, January 21st. TD Cowen reaffirmed a “buy” rating on shares of Allegro MicroSystems in a research note on Friday, October 31st. Finally, Barclays upped their price target on shares of Allegro MicroSystems from $30.00 to $35.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. Eight research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $38.89.

Allegro MicroSystems Price Performance

The stock has a 50-day simple moving average of $28.49 and a 200 day simple moving average of $29.74. The company has a quick ratio of 2.48, a current ratio of 3.89 and a debt-to-equity ratio of 0.30. The company has a market cap of $6.49 billion, a PE ratio of -219.09 and a beta of 1.61.

Allegro MicroSystems (NASDAQ:ALGM) last posted its earnings results on Thursday, October 30th. The company reported $0.13 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.01. The firm had revenue of $214.29 million during the quarter, compared to the consensus estimate of $210.75 million. Allegro MicroSystems had a negative net margin of 3.60% and a positive return on equity of 2.90%. The firm’s revenue for the quarter was up 14.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.08 EPS. Allegro MicroSystems has set its Q3 2026 guidance at 0.120-0.160 EPS. Equities analysts expect that Allegro MicroSystems, Inc. will post 0.01 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Capital Research Global Investors raised its holdings in Allegro MicroSystems by 5.8% during the third quarter. Capital Research Global Investors now owns 16,824,722 shares of the company’s stock worth $491,282,000 after purchasing an additional 920,365 shares in the last quarter. Vanguard Group Inc. lifted its holdings in shares of Allegro MicroSystems by 0.6% during the third quarter. Vanguard Group Inc. now owns 14,293,465 shares of the company’s stock worth $417,369,000 after purchasing an additional 87,526 shares during the period. Invesco Ltd. boosted its holdings in shares of Allegro MicroSystems by 29.3% in the second quarter. Invesco Ltd. now owns 6,254,575 shares of the company’s stock valued at $213,844,000 after acquiring an additional 1,418,934 shares in the last quarter. State Street Corp increased its position in Allegro MicroSystems by 2.1% during the 2nd quarter. State Street Corp now owns 5,193,001 shares of the company’s stock worth $177,549,000 after purchasing an additional 108,402 shares during the period. Finally, Alliancebernstein L.P. raised its position in Allegro MicroSystems by 189.4% in the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company’s stock worth $94,360,000 after acquiring an additional 1,806,183 shares in the last quarter. Hedge funds and other institutional investors own 56.45% of the company’s stock.

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.