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

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s share price hit a new 52-week high on Wednesday . The company traded as high as $51.66 and last traded at $49.7060, with a volume of 142793 shares changing hands. The stock had previously closed at $50.76.

Wall Street Analyst Weigh In

ALGM has been the subject of a number of research analyst reports. TD Cowen lifted their target price on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the stock a “buy” rating in a research report on Friday, January 30th. Needham & Company LLC increased their price target on Allegro MicroSystems from $45.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Mizuho raised their price target on Allegro MicroSystems from $44.00 to $54.00 and gave the stock an “outperform” rating in a research note on Friday, May 8th. Wells Fargo & Company lifted their price objective on Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. Ten research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $51.80.

Allegro MicroSystems Price Performance

The firm’s 50-day moving average is $39.41 and its 200-day moving average is $34.22. 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 company has a market capitalization of $9.21 billion, a P/E ratio of -550.01 and a beta of 2.02.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.01. The business 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 quarterly revenue was up 26.1% on a year-over-year basis. During the same period last year, the firm earned $0.06 earnings per share. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. Analysts predict that Allegro MicroSystems, Inc. will post 0.77 EPS for the current fiscal year.

Insider Transactions at Allegro MicroSystems

In related news, CAO Roald Graham Webster sold 5,217 shares of Allegro MicroSystems stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $44.88, for a total transaction of $234,138.96. Following the transaction, the chief accounting officer directly owned 13,106 shares in the company, valued at approximately $588,197.28. The trade was a 28.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Ian Kent sold 2,642 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $41.56, for a total value of $109,801.52. Following the sale, the senior vice president directly owned 25,392 shares of the company’s stock, valued at $1,055,291.52. This represents a 9.42% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 63,607 shares of company stock worth $2,950,114 over the last three months. 0.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Hantz Financial Services Inc. increased its holdings in Allegro MicroSystems by 86.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 901 shares of the company’s stock worth $26,000 after acquiring an additional 419 shares in the last quarter. Parallel Advisors LLC raised its stake in Allegro MicroSystems by 42.8% during the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock worth $32,000 after acquiring an additional 302 shares during the period. Kestra Advisory Services LLC purchased a new position in Allegro MicroSystems during the fourth quarter valued at approximately $34,000. CIBC Private Wealth Group LLC boosted its position in shares of Allegro MicroSystems by 14,844.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock worth $35,000 after purchasing an additional 1,336 shares during the period. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Allegro MicroSystems by 85.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock worth $38,000 after purchasing an additional 669 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.