Allegro MicroSystems (NASDAQ:ALGM) Shares Gap Up – What’s Next?

Allegro MicroSystems, Inc. (NASDAQ:ALGM)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $50.85, but opened at $54.21. Allegro MicroSystems shares last traded at $51.6870, with a volume of 116,786 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on ALGM shares. UBS Group raised their price target on Allegro MicroSystems from $52.00 to $55.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Jefferies Financial Group reissued a “buy” rating and issued a $62.00 target price on shares of Allegro MicroSystems in a research note on Thursday, May 7th. Weiss Ratings restated a “sell (d-)” rating on shares of Allegro MicroSystems in a report on Wednesday, May 6th. Mizuho boosted their target price on Allegro MicroSystems from $54.00 to $67.00 and gave the stock an “outperform” rating in a research report on Monday, June 29th. Finally, Wells Fargo & Company upped their price target on Allegro MicroSystems from $48.00 to $56.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Ten investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Allegro MicroSystems has a consensus rating of “Moderate Buy” and an average target price of $55.20.

Allegro MicroSystems Trading Down 4.4%

The company has a market capitalization of $9.32 billion, a P/E ratio of -555.83 and a beta of 1.90. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.45 and a quick ratio of 2.21. The business’s 50-day moving average price is $51.65 and its two-hundred day moving average price is $41.20.

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

Insider Buying and Selling

In other news, SVP Richard Madormo sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $52.72, for a total transaction of $263,600.00. Following the sale, the senior vice president owned 69,687 shares of the company’s stock, valued at $3,673,898.64. This trade represents a 6.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Ian Kent sold 2,642 shares of Allegro MicroSystems stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $41.56, for a total value of $109,801.52. Following the transaction, the senior vice president owned 25,392 shares in the company, valued at $1,055,291.52. This trade represents a 9.42% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 68,607 shares of company stock valued at $3,213,714. 0.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Parallel Advisors LLC boosted its position in Allegro MicroSystems by 42.8% during the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company’s stock valued at $32,000 after purchasing an additional 302 shares during the last quarter. Vanguard Personalized Indexing Management LLC increased its position in shares of Allegro MicroSystems by 3.0% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 14,268 shares of the company’s stock worth $376,000 after purchasing an additional 419 shares during the last quarter. State of Michigan Retirement System increased its position in shares of Allegro MicroSystems by 2.0% during the 1st quarter. State of Michigan Retirement System now owns 29,900 shares of the company’s stock worth $943,000 after purchasing an additional 600 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake 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 purchasing an additional 669 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund boosted its holdings in shares of Allegro MicroSystems by 2.8% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 25,437 shares of the company’s stock valued at $802,000 after buying an additional 700 shares during the last quarter. Institutional investors and hedge funds 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.