Allegro MicroSystems (NASDAQ:ALGM) Price Target Lowered to $58.00 at Mizuho

Allegro MicroSystems (NASDAQ:ALGM) had its target price decreased by Mizuho from $67.00 to $58.00 in a report published on Friday morning,Benzinga reports. Mizuho currently has an outperform rating on the stock.

Other equities research analysts have also recently issued research reports about the stock. TD Cowen lowered their price target on shares of Allegro MicroSystems from $66.00 to $48.00 and set a “buy” rating for the company in a research report on Friday. Wells Fargo & Company lifted their price objective on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a report on Friday, May 8th. Evercore reissued an “outperform” rating and issued a $53.00 price objective on shares of Allegro MicroSystems in a research note on Friday, May 8th. Jefferies Financial Group restated a “buy” rating and set a $62.00 target price on shares of Allegro MicroSystems in a report on Thursday, May 7th. Finally, Wall Street Zen cut Allegro MicroSystems from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Nine analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $52.80.

Allegro MicroSystems Stock Performance

ALGM stock opened at $41.50 on Friday. Allegro MicroSystems has a 1-year low of $22.41 and a 1-year high of $71.77. The business has a 50-day moving average price of $51.82 and a 200 day moving average price of $42.58. The company has a market capitalization of $7.73 billion, a P/E ratio of 691.78 and a beta of 1.90. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.21.

Allegro MicroSystems (NASDAQ:ALGM) last issued its earnings results on Thursday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.02. The company had revenue of $259.24 million for the quarter, compared to analysts’ expectations of $251.44 million. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The firm’s quarterly revenue was up 27.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.09 EPS. 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 other Allegro MicroSystems news, SVP Richard Madormo sold 5,000 shares of the firm’s stock in a transaction that occurred on 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 $3,673,898.64. This trade represents a 6.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael Doogue sold 30,089 shares of Allegro MicroSystems stock in a transaction on Monday, May 11th. The stock was 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 directly owned 252,797 shares in the company, valued at $11,939,602.31. This represents a 10.64% 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 valued at $3,213,714 over the last three months. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Allegro MicroSystems

Hedge funds and other institutional investors have recently made changes to their positions in the business. Invesco Ltd. boosted its position in shares of Allegro MicroSystems by 44.0% in the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company’s stock worth $201,835,000 after purchasing an additional 2,338,624 shares in the last quarter. State Street Corp increased its position in Allegro MicroSystems by 1.5% during the 4th quarter. State Street Corp now owns 5,359,488 shares of the company’s stock valued at $141,383,000 after buying an additional 78,203 shares in the last quarter. Adage Capital Partners GP L.L.C. increased its position in Allegro MicroSystems by 77.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company’s stock valued at $73,968,000 after buying an additional 1,227,317 shares in the last quarter. Alliancebernstein L.P. raised its stake in Allegro MicroSystems by 189.4% in the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company’s stock valued at $94,360,000 after buying an additional 1,806,183 shares during the last quarter. Finally, Geode Capital Management LLC raised its stake in Allegro MicroSystems by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 2,393,968 shares of the company’s stock valued at $63,165,000 after buying an additional 24,839 shares during the last quarter. Hedge funds and other institutional investors own 56.45% of the company’s stock.

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.

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.