Allegro MicroSystems (NASDAQ:ALGM) Reaches New 12-Month High – Here’s Why

Allegro MicroSystems, Inc. (NASDAQ:ALGM) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $54.54 and last traded at $54.56, with a volume of 857171 shares traded. The stock had previously closed at $50.40.

Analysts Set New Price Targets

ALGM has been the subject of a number of analyst reports. Wall Street Zen downgraded Allegro MicroSystems from a “buy” rating to a “hold” rating in a research report on Saturday. Mizuho raised their price target on Allegro MicroSystems from $44.00 to $54.00 and gave the stock an “outperform” rating in a research report on Friday, May 8th. Barclays raised their price target on Allegro MicroSystems from $46.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Allegro MicroSystems in a research report on Wednesday, May 6th. Finally, Needham & Company LLC raised their price target on Allegro MicroSystems from $45.00 to $55.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Ten analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $51.80.

Allegro MicroSystems Stock Performance

The company has a quick ratio of 2.21, a current ratio of 3.45 and a debt-to-equity ratio of 0.30. The business has a 50 day simple moving average of $44.86 and a two-hundred day simple moving average of $36.80. The firm has a market cap of $10.05 billion, a PE ratio of -599.71 and a beta of 1.98.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 6.09% and a negative net margin of 1.67%.The business had revenue of $243.19 million for the quarter, compared to analyst estimates of $235.94 million. During the same quarter last year, the firm posted $0.06 earnings per share. The business’s revenue was up 26.1% compared to the same quarter last year. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. As a group, equities research analysts forecast that Allegro MicroSystems, Inc. will post 0.77 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Michael Doogue sold 30,089 shares of Allegro MicroSystems stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $47.23, for a total transaction of $1,421,103.47. Following the completion of the sale, the chief executive officer owned 252,797 shares of the company’s stock, valued at approximately $11,939,602.31. The trade was a 10.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Ian Kent sold 2,642 shares of Allegro MicroSystems stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $41.56, for a total transaction 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. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 68,607 shares of company stock valued at $3,213,714. Insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Hedge funds and other institutional investors have recently made changes to their positions in the company. Parallel Advisors LLC grew its position in shares of 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 buying an additional 302 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Allegro MicroSystems during the 4th quarter worth $34,000. CIBC Private Wealth Group LLC grew its position in shares of Allegro MicroSystems by 14,844.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock worth $35,000 after buying an additional 1,336 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its position in shares of Allegro MicroSystems by 85.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock worth $38,000 after buying an additional 669 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its position in shares of Allegro MicroSystems by 815.4% during the 4th quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company’s stock worth $57,000 after buying an additional 1,908 shares in the last quarter. Institutional investors own 56.45% of the company’s stock.

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.