Allegro MicroSystems (NASDAQ:ALGM) Price Target Raised to $57.00

Allegro MicroSystems (NASDAQ:ALGM) had its target price hoisted by Needham & Company LLC from $55.00 to $57.00 in a research note released on Thursday morning,Benzinga reports. The firm currently has a buy rating on the stock.

Other equities research analysts also recently issued reports about the company. 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. Weiss Ratings restated a “sell (d-)” rating on shares of Allegro MicroSystems in a research note on Wednesday, May 6th. Jefferies Financial Group reaffirmed a “buy” rating and set a $62.00 price target on shares of Allegro MicroSystems in a report on Thursday, May 7th. TD Cowen reduced their price target on shares of Allegro MicroSystems from $70.00 to $66.00 and set a “buy” rating for the company in a research note on Monday, July 13th. Finally, Barclays cut shares of Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price objective for the company. in a report on Monday, July 20th. Nine investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $52.80.

Allegro MicroSystems Stock Performance

ALGM stock opened at $41.50 on Thursday. The stock has a market capitalization of $7.73 billion, a PE ratio of 691.78 and a beta of 1.90. Allegro MicroSystems has a 12-month low of $22.41 and a 12-month high of $71.77. The company has a current ratio of 3.70, a quick ratio of 2.21 and a debt-to-equity ratio of 0.30. The stock’s 50 day simple moving average is $51.82 and its 200 day simple moving average is $42.58.

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

Insider Activity at Allegro MicroSystems

In related news, Director Susan D. Lynch sold 16,711 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $45.46, for a total value of $759,682.06. Following the completion of the transaction, the director owned 12,805 shares of the company’s stock, valued at approximately $582,115.30. This represents a 56.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Richard Madormo sold 5,000 shares of Allegro MicroSystems stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $52.72, for a total value of $263,600.00. Following the sale, the senior vice president directly owned 69,687 shares in the company, valued at $3,673,898.64. This trade represents a 6.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 68,607 shares of company stock worth $3,213,714 in the last 90 days. Company insiders own 0.50% of the company’s stock.

Institutional Trading of Allegro MicroSystems

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Lecap Asset Management Ltd. bought a new stake in Allegro MicroSystems during the fourth quarter worth approximately $783,000. Norges Bank bought a new position in Allegro MicroSystems in the fourth quarter worth approximately $38,457,000. Lightrock Netherlands B.V. purchased a new position in Allegro MicroSystems during the 4th quarter valued at about $9,349,000. Altfest L J & Co. Inc. bought a new position in shares of Allegro MicroSystems in the 4th quarter worth $430,000. Finally, S Squared Technology LLC grew its holdings in Allegro MicroSystems by 15.1% in the fourth quarter. S Squared Technology LLC now owns 457,451 shares of the company’s stock worth $12,068,000 after purchasing an additional 60,000 shares during the last quarter. 56.45% of the stock is currently owned by institutional investors.

Allegro MicroSystems News Summary

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.