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

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

Trending Headlines about Allegro MicroSystems

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

• Positive Sentiment: Q3 results beat expectations — Allegro reported $0.15 EPS (vs. $0.14 consensus) and $229.2M revenue (vs. ~$220.8M), with revenue up ~29% YoY; management provided revenue and EPS guidance that supported a bullish near‑term outlook. GlobeNewswire: Q3 Results
• Positive Sentiment: Multiple analyst price‑target raises — TD Cowen, Wells Fargo, Morgan Stanley and Jefferies raised targets (examples: TD Cowen and Wells Fargo to $45; Jefferies to $43), signaling institutional support and providing fresh upside narratives for traders. Benzinga: Analyst Coverage The Fly: TD Cowen Raise
• Positive Sentiment: Shares briefly rallied to multi‑year highs on the swing to profitability and the stronger sales outlook, reflecting momentum buying after the print. MSN: Stock Jumps
• Neutral Sentiment: Company guidance is roughly in line with consensus (Q4 EPS guide $0.140–$0.18; revenue $230–240M), so while supportive, it wasn’t an unambiguous upside surprise that would guarantee further multiple expansion. MSN: Guidance Details
• Neutral Sentiment: Investors can review the company presentation and full earnings call transcript for detail on product mix and end‑market exposure (automotive still dominant; data center exposure cited as a growth catalyst). Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Valuation and earnings‑quality concerns — a Seeking Alpha piece warns Allegro is “pricing in green shoots” with a demanding multiple (~8x sales) and that adjusted EPS is inflated by significant stock‑based compensation, suggesting true cash earnings are lower. That note likely prompted some profit‑taking. Seeking Alpha: Valuation Caution

Wall Street Analyst Weigh In

Several analysts have commented on the company. Bank of America increased their target price on Allegro MicroSystems from $36.00 to $39.00 and gave the company a “buy” rating in a research note on Wednesday, January 21st. UBS Group increased their target price on shares of Allegro MicroSystems from $40.00 to $44.00 and gave the stock a “buy” rating in a report on Friday. Needham & Company LLC lifted their target price on shares of Allegro MicroSystems from $37.00 to $41.00 and gave the company a “buy” rating in a research note on Thursday. Wells Fargo & Company lifted their target price on Allegro MicroSystems from $40.00 to $45.00 and gave the company an “overweight” rating in a research note on Friday. Finally, Barclays boosted their target price on shares of Allegro MicroSystems from $35.00 to $46.00 and gave the stock an “overweight” rating in a report on Friday. Nine equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Allegro MicroSystems has an average rating of “Moderate Buy” and a consensus target price of $43.50.

Allegro MicroSystems Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 3.65 and a quick ratio of 2.48. The stock’s 50-day simple moving average is $29.28 and its two-hundred day simple moving average is $29.83. The firm has a market cap of $6.83 billion, a P/E ratio of -461.38 and a beta of 1.61.

Allegro MicroSystems (NASDAQ:ALGM) last announced its earnings results on Thursday, January 29th. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.01. The business had revenue of $229.21 million during the quarter, compared to analyst estimates of $220.78 million. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.The company’s revenue for the quarter was up 28.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.07 earnings per share. Equities research analysts forecast that Allegro MicroSystems, Inc. will post 0.01 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Allegro MicroSystems

A number of large investors have recently added to or reduced their stakes in ALGM. Hantz Financial Services Inc. raised its position in shares of Allegro MicroSystems by 86.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 901 shares of the company’s stock valued at $26,000 after purchasing an additional 419 shares during the last quarter. Quent Capital LLC purchased a new stake in Allegro MicroSystems in the third quarter valued at approximately $28,000. Farther Finance Advisors LLC boosted its holdings in shares of Allegro MicroSystems by 815.4% in the 4th quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company’s stock valued at $57,000 after acquiring an additional 1,908 shares during the last quarter. Nisa Investment Advisors LLC grew its position in Allegro MicroSystems by 158.8% during the 2nd quarter. Nisa Investment Advisors LLC now owns 2,210 shares of the company’s stock worth $76,000 after purchasing an additional 1,356 shares during the period. Finally, NewEdge Advisors LLC grew its holdings in Allegro MicroSystems by 12,315.0% during the third quarter. NewEdge Advisors LLC now owns 2,483 shares of the company’s stock worth $73,000 after acquiring an additional 2,463 shares during the period. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems Company Profile

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.