Allegro MicroSystems (NASDAQ:ALGM) Reaches New 12-Month High – Should You Buy?

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares reached a new 52-week high during trading on Monday . The stock traded as high as $62.48 and last traded at $63.0020, with a volume of 675287 shares traded. The stock had previously closed at $57.89.

Analyst Upgrades and Downgrades

ALGM has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. Needham & Company LLC boosted their target price on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Evercore reissued an “outperform” rating and set a $53.00 price target on shares of Allegro MicroSystems in a research report on Friday, May 8th. Mizuho raised their price target on shares of Allegro MicroSystems from $54.00 to $67.00 and gave the company an “outperform” rating in a report on Monday. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $62.00 price objective on shares of Allegro MicroSystems in a research report on Thursday, May 7th. Ten investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.60.

Allegro MicroSystems Stock Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21. The firm has a market cap of $12.97 billion, a price-to-earnings ratio of -773.47 and a beta of 1.98. The firm has a fifty day simple moving average of $49.46 and a two-hundred day simple moving average of $39.06.

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

Insider Buying and Selling at Allegro MicroSystems

In other news, SVP Richard Madormo sold 5,000 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total transaction of $263,600.00. Following the sale, the senior vice president directly owned 69,687 shares of the company’s stock, valued at $3,673,898.64. The trade was a 6.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Susan D. Lynch sold 16,711 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total transaction of $759,682.06. Following the sale, the director directly 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 SEC filing for this sale provides additional information. Insiders have sold a total of 68,607 shares of company stock worth $3,213,714 in the last three months. 0.50% of the stock is owned by company insiders.

Institutional Trading of Allegro MicroSystems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Parallel Advisors LLC increased its holdings 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 purchasing an additional 302 shares during the period. Bank of America Corp DE raised its stake in shares of Allegro MicroSystems by 48.3% in the first quarter. Bank of America Corp DE now owns 855,453 shares of the company’s stock worth $26,972,000 after purchasing an additional 278,798 shares during the last quarter. California State Teachers Retirement System lifted its holdings in shares of Allegro MicroSystems by 21.8% during the first quarter. California State Teachers Retirement System now owns 149,826 shares of the company’s stock worth $4,724,000 after purchasing an additional 26,828 shares during the period. Maverick Capital Ltd. acquired a new stake in shares of Allegro MicroSystems during the first quarter worth about $1,331,000. Finally, Quantinno Capital Management LP boosted its position in Allegro MicroSystems by 104.9% in the first quarter. Quantinno Capital Management LP now owns 133,902 shares of the company’s stock valued at $4,222,000 after buying an additional 68,549 shares during the last quarter. Institutional investors and hedge funds 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.