Wall Street Zen Downgrades Allegro MicroSystems (NASDAQ:ALGM) to Hold

Allegro MicroSystems (NASDAQ:ALGM) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

Several other equities analysts have also recently issued reports on the company. TD Cowen lifted their price objective on Allegro MicroSystems from $32.00 to $35.00 and gave the company a “buy” rating in a research note on Friday, October 31st. Cowen reaffirmed a “buy” rating on shares of Allegro MicroSystems in a report on Friday, October 31st. UBS Group lifted their price target on shares of Allegro MicroSystems from $38.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, October 31st. Evercore ISI increased their price objective on shares of Allegro MicroSystems from $37.00 to $49.00 and gave the company an “outperform” rating in a research report on Friday, October 31st. Finally, Barclays lifted their price objective 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. Nine analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $38.78.

Allegro MicroSystems Stock Performance

Shares of ALGM stock opened at $31.29 on Friday. The firm has a 50 day moving average of $26.97 and a two-hundred day moving average of $29.99. The stock has a market capitalization of $5.79 billion, a PE ratio of -195.56 and a beta of 1.61. The company has a quick ratio of 2.48, a current ratio of 3.89 and a debt-to-equity ratio of 0.30. Allegro MicroSystems has a 52 week low of $16.38 and a 52 week high of $38.45.

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Bank of America Corp DE increased its position in Allegro MicroSystems by 136.6% in the 3rd quarter. Bank of America Corp DE now owns 952,679 shares of the company’s stock valued at $27,818,000 after acquiring an additional 3,556,410 shares during the period. Alliancebernstein L.P. grew its stake in shares of Allegro MicroSystems by 189.4% in the 2nd quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company’s stock valued at $94,360,000 after purchasing an additional 1,806,183 shares during the last quarter. Invesco Ltd. increased 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 purchasing an additional 1,418,934 shares during the period. Norges Bank acquired a new position in shares of Allegro MicroSystems in the second quarter valued at approximately $48,138,000. Finally, Capital Research Global Investors lifted its holdings in shares of 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 during the period. 56.45% of the stock is owned by hedge funds and other institutional investors.

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.