Allegro MicroSystems (NASDAQ:ALGM) Price Target Cut to $46.00 by Analysts at Mizuho

Allegro MicroSystems (NASDAQ:ALGM) had its target price reduced by Mizuho from $58.00 to $46.00 in a report released on Friday morning,Benzinga reports. They currently have an outperform rating on the stock.

Other analysts have also recently issued research reports about the company. Barclays cut Allegro MicroSystems from an “overweight” rating to an “equal weight” rating and set a $48.00 price objective for the company. in a research report on Monday, July 20th. TD Cowen dropped their target price on Allegro MicroSystems from $48.00 to $40.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. Royal Bank Of Canada assumed coverage on Allegro MicroSystems in a research report on Friday, October 2nd. They set an “outperform” rating and a $50.00 target price on the stock. Wells Fargo & Company decreased their price target on Allegro MicroSystems from $56.00 to $45.00 and set an “overweight” rating for the company in a research note on Tuesday, October 20th. Finally, Benchmark initiated coverage on Allegro MicroSystems in a report on Wednesday, August 12th. They issued a “buy” rating and a $60.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $49.33.

Allegro MicroSystems Trading Down 7.6%

NASDAQ:ALGM opened at $30.53 on Friday. The stock has a market capitalization of $5.69 billion, a price-to-earnings ratio of 203.55, a PEG ratio of 1.04 and a beta of 1.99. Allegro MicroSystems has a 52 week low of $22.41 and a 52 week high of $71.77. The company has a quick ratio of 2.33, a current ratio of 4.13 and a debt-to-equity ratio of 0.28. The firm has a 50 day moving average of $35.09 and a 200 day moving average of $40.66.

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

Insider Activity

In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $44.39, for a total value of $101,431.15. Following the completion of the transaction, the senior vice president owned 31,052 shares of the company’s stock, valued at approximately $1,378,398.28. This trade represents a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Allegro MicroSystems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC purchased a new position in Allegro MicroSystems during the 2nd quarter worth approximately $27,000. Rakuten Securities Inc. purchased a new stake in shares of Allegro MicroSystems in the 2nd quarter valued at $31,000. Parallel Advisors LLC boosted 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 acquiring an additional 302 shares during the last quarter. Continuum Advisory LLC acquired a new stake in shares of Allegro MicroSystems in the second quarter worth $35,000. Finally, Signaturefd LLC increased its stake in shares of Allegro MicroSystems by 51.3% in the third quarter. Signaturefd LLC now owns 1,070 shares of the company’s stock worth $39,000 after acquiring an additional 363 shares during the period. Institutional investors and hedge funds own 56.45% of the company’s stock.

Key Headlines Impacting 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.