Allegro MicroSystems (NASDAQ:ALGM) Stock Gets Price Target Trim from Wells Fargo & Company

Allegro MicroSystems (NASDAQ:ALGM) had its price target lowered by Wells Fargo & Company from $45.00 to $40.00 in a research note released on Friday,Benzinga reports. The firm currently has an overweight rating on the stock.

A number of other brokerages also recently issued reports on ALGM. Benchmark started coverage on Allegro MicroSystems in a research report on Wednesday, August 12th. They set a “buy” rating and a $60.00 price objective for the company. Mizuho dropped their price objective on shares of Allegro MicroSystems from $58.00 to $46.00 and set an “outperform” rating for the company in a research report on Friday. Morgan Stanley boosted their price objective on Allegro MicroSystems from $51.00 to $52.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a research note on Sunday, August 2nd. Finally, TD Cowen lowered their target price on Allegro MicroSystems from $48.00 to $40.00 and set a “buy” rating on the stock in a report on Monday, October 19th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $49.33.

Allegro MicroSystems Price Performance

Shares of ALGM stock opened at $30.53 on Friday. The company has a current ratio of 4.13, a quick ratio of 2.79 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $5.69 billion, a price-to-earnings ratio of 203.55, a P/E/G ratio of 0.90 and a beta of 2.05. The stock has a fifty day simple moving average of $35.09 and a two-hundred day simple moving average of $40.66. Allegro MicroSystems has a twelve month low of $22.41 and a twelve month high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.02. The business had revenue of $276.88 million during the quarter, compared to the consensus estimate of $270.86 million. Allegro MicroSystems had a return on equity of 10.34% and a net margin of 3.07%. The company’s quarterly revenue was up 29.2% on a year-over-year basis. During the same quarter last year, the company earned $0.13 earnings per share. On average, analysts predict that Allegro MicroSystems will post 0.65 EPS for the current fiscal year.

Insider Activity at Allegro MicroSystems

In other news, SVP Erin Hagen sold 2,285 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $44.39, for a total transaction of $101,431.15. Following the transaction, the senior vice president owned 31,052 shares in the company, valued at approximately $1,378,398.28. This represents a 6.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

A number of hedge funds and other institutional investors have recently bought and sold shares of ALGM. State of Wyoming purchased a new stake in shares of Allegro MicroSystems in the 2nd quarter worth approximately $2,247,000. Legal & General Group Plc purchased a new stake in Allegro MicroSystems during the second quarter worth $11,469,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Allegro MicroSystems in the 2nd quarter worth $1,634,000. E. Ohman J or Asset Management AB purchased a new position in shares of Allegro MicroSystems in the 3rd quarter valued at about $2,648,000. Finally, Wellington Management Group LLP boosted its stake in Allegro MicroSystems by 21.1% during the second quarter. Wellington Management Group LLP now owns 814,937 shares of the company’s stock worth $56,736,000 after buying an additional 141,841 shares during the last quarter. Hedge funds and other institutional investors own 56.45% of the company’s stock.

Trending Headlines about Allegro MicroSystems

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

• Positive Sentiment: Allegro reported second-quarter fiscal 2027 revenue of approximately $277 million, up 29% year over year and ahead of the roughly $271 million consensus estimate. Adjusted earnings were $0.26 per share, exceeding expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior-year period. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: Management highlighted record sales in industrial and other markets and data centers, along with improving inventory levels, stronger demand signals and ongoing design wins. These trends support the longer-term growth outlook, particularly in electrification, automation and data-center applications. ALGM Q3 Deep Dive
• Neutral Sentiment: Analysts remain broadly constructive, but several firms reduced their targets after the results: Wells Fargo to $40 from $45, UBS to $48 from $50, Barclays to $45 from $48, Mizuho to $46 from $58 and Needham to $50 from $57. Ratings remained positive or neutral, indicating expectations were reset rather than fully reversed. Analysts Cut Their Forecasts on Allegro MicroSystems
• Negative Sentiment: The stock’s decline reflects concerns that near-term demand may not be strong enough to justify prior valuation assumptions. Investors are also weighing capacity constraints, the pace of recovery across end markets and the possibility that the earnings beat will not translate into a materially higher outlook. Allegro MicroSystems Sinks Despite Earnings Beat

About Allegro MicroSystems

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.