Allegro MicroSystems (NASDAQ:ALGM) Price Target Lowered to $48.00 at TD Cowen

Allegro MicroSystems (NASDAQ:ALGM) had its price target reduced by TD Cowen from $66.00 to $48.00 in a research report report published on Friday,Benzinga reports. They currently have a buy rating on the stock.

Other equities research analysts have also issued reports about the stock. Wells Fargo & Company increased their target price on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Needham & Company LLC boosted their price target on shares of Allegro MicroSystems from $55.00 to $57.00 and gave the stock a “buy” rating in a research note on Thursday. Weiss Ratings restated a “sell (d-)” rating on shares of Allegro MicroSystems in a research note on Wednesday, May 6th. Wall Street Zen lowered Allegro MicroSystems from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Finally, Mizuho increased their price objective on Allegro MicroSystems from $54.00 to $67.00 and gave the company an “outperform” rating in a research note on Monday, June 29th. Nine investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $52.80.

Allegro MicroSystems Stock Up 0.1%

Shares of NASDAQ:ALGM opened at $41.50 on Friday. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.21. The firm has a market capitalization of $7.73 billion, a PE ratio of 691.78 and a beta of 1.90. The firm’s 50-day moving average is $51.82 and its two-hundred day moving average is $42.58. Allegro MicroSystems has a 1 year low of $22.41 and a 1 year high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.02. Allegro MicroSystems had a net margin of 1.50% and a return on equity of 8.30%. The business had revenue of $259.24 million for the quarter, compared to analysts’ expectations of $251.44 million. During the same quarter in the prior year, the company earned $0.09 earnings per share. The business’s quarterly revenue was up 27.5% on a year-over-year basis. Allegro MicroSystems has set its Q2 2027 guidance at 0.230-0.260 EPS. Analysts predict that Allegro MicroSystems will post 0.77 EPS for the current year.

Insider Activity

In related news, 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 value of $109,801.52. Following the completion of the transaction, the senior vice president owned 25,392 shares in the company, valued at $1,055,291.52. The trade was a 9.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Susan D. Lynch sold 16,711 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $45.46, for a total transaction of $759,682.06. Following the transaction, the director owned 12,805 shares of the company’s stock, valued at $582,115.30. This trade represents a 56.62% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Allegro MicroSystems

A number of large investors have recently modified their holdings of the company. Parallel Advisors LLC raised its holdings in shares of Allegro MicroSystems by 42.8% in the 1st quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after purchasing an additional 302 shares in the last quarter. Harbor Investment Advisory LLC acquired a new position in shares of Allegro MicroSystems during the second quarter worth $72,000. Kestra Advisory Services LLC acquired a new position in shares of Allegro MicroSystems during the fourth quarter worth $34,000. CIBC Private Wealth Group LLC increased its holdings in 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 valued at $35,000 after buying an additional 1,336 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its holdings in 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 valued at $38,000 after buying an additional 669 shares during the last quarter. 56.45% of the stock is owned by hedge funds and other institutional investors.

Allegro MicroSystems News Roundup

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

• Positive Sentiment: Allegro exceeded expectations with earnings of $0.23 per share versus the $0.21 consensus and revenue of $259.24 million versus $251.44 million. Revenue increased 27.5% year over year, while EPS rose substantially from $0.09 a year earlier. Allegro MicroSystems Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management issued second-quarter revenue guidance of $265 million to $275 million, above the $264.5 million consensus, and EPS guidance of $0.23 to $0.26, at or above expectations. Allegro MicroSystems Reports First Quarter 2027 Results
• Positive Sentiment: Record data-center sales, stronger bookings, expanding design wins and increased semiconductor content per system point to sustained AI infrastructure demand. Electrification and automation also provide additional growth opportunities. ALGM Q1 Earnings Call Highlights AI Data Center Growth
• Positive Sentiment: Needham raised its price target from $55 to $57 and maintained a Buy rating, implying substantial potential upside from the referenced $41.50 level.
• Neutral Sentiment: Despite the operating beat, Allegro reported a negative net margin of 1.67%, and the shares remain well below their 52-week high, suggesting investors may be weighing recovery potential against profitability and valuation risks.
• Negative Sentiment: Mizuho cut its price target from $67 to $58, although it retained an Outperform rating. TD Cowen also reduced its target from $66 to $48 while maintaining Buy. These reductions may limit enthusiasm by signaling more cautious assumptions despite the favorable results.

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.