Allegro MicroSystems (NASDAQ:ALGM) Stock Price Target Cut by Mizuho

Allegro MicroSystems (NASDAQ:ALGM) had its target price dropped by analysts at Mizuho from $58.00 to $46.00 in a report released on Friday, Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Mizuho‘s price target indicates a potential upside of 39.27% from the company’s current price.

Other analysts also recently issued reports about the stock. Barclays downgraded shares of Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price target on the stock. in a research report on Monday, July 20th. Needham & Company LLC cut their target price on shares of Allegro MicroSystems from $57.00 to $50.00 and set a “buy” rating on the stock in a report on Thursday. Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research report on Sunday, August 2nd. Wells Fargo & Company decreased their price target on shares of Allegro MicroSystems from $56.00 to $45.00 and set an “overweight” rating for the company in a report on Tuesday, October 20th. Finally, Benchmark started coverage on shares of Allegro MicroSystems in a research report on Wednesday, August 12th. They issued a “buy” rating and a $60.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $50.00.

Allegro MicroSystems Stock Down 6.6%

NASDAQ:ALGM opened at $33.03 on Friday. 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 has a 12-month low of $22.41 and a 12-month high of $71.77. The stock’s fifty day simple moving average is $35.23 and its 200-day simple moving average is $40.66. The firm has a market capitalization of $6.16 billion, a P/E ratio of 550.59, a P/E/G ratio of 1.11 and a beta of 1.99.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings data on Thursday, October 29th. The company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.02. Allegro MicroSystems had a return on equity of 8.30% and a net margin of 1.50%. The business had revenue of $276.88 million during the quarter, compared to the consensus estimate of $270.86 million. During the same quarter in the prior year, the company posted $0.13 earnings per share. The firm’s revenue was up 29.2% on a year-over-year basis. Equities research analysts expect that Allegro MicroSystems will post 0.65 earnings per share for the current year.

Insider Activity

In other news, SVP Erin Hagen sold 2,285 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $44.39, for a total transaction of $101,431.15. Following the sale, the senior vice president owned 31,052 shares in the company, valued at $1,378,398.28. This represents a 6.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Allegro MicroSystems

Several institutional investors and hedge funds have recently bought and sold shares of ALGM. Transamerica Financial Advisors LLC bought a new stake in Allegro MicroSystems in the 2nd quarter valued at $27,000. Rakuten Securities Inc. bought a new position in Allegro MicroSystems during the second quarter worth $31,000. Continuum Advisory LLC bought a new position in Allegro MicroSystems during the second quarter worth $35,000. First Bancorp Inc ME acquired a new position in shares of Allegro MicroSystems in the second quarter valued at $49,000. Finally, 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 last quarter. Institutional investors own 56.45% of the company’s stock.

Key Headlines Impacting Allegro MicroSystems

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Strong second-quarter results: Allegro reported revenue of approximately $277 million, up 29% year over year and ahead of the $271 million consensus estimate. EPS of $0.26 also exceeded expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior year. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: Improving business trends: Record sales in the industrial, other and data-center categories, along with improving inventory levels, point to healthier demand and potentially better operating momentum. Allegro MicroSystems surprises with Q3 sales, inventory levels improve
• Positive Sentiment: Analyst remains bullish: Needham & Company maintained a “buy” rating and still sees substantial potential upside, indicating confidence in Allegro’s longer-term prospects despite reducing its price target. Needham analyst recommendation
• Neutral Sentiment: Long-term growth thesis: Conestoga initiated a position, citing rising chip content from vehicle electrification, driver-assistance systems and expanding automotive electronics. Conestoga SMid Cap Composite portfolio activity
• Negative Sentiment: Lower price target: Needham cut its target from $57 to $50. Although the firm retained its buy rating, the reduction may signal more cautious expectations and weigh on sentiment.
• Negative Sentiment: Elevated valuation: With the shares trading well below their 52-week high but at a reported P/E above 500, investors may be demanding stronger forward guidance or accelerating profitability. Allegro’s net margin was only 1.5%, which leaves limited room for execution disappointments.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.