Benchmark Upgrades Allegro MicroSystems (NASDAQ:ALGM) to Strong-Buy

Allegro MicroSystems (NASDAQ:ALGM) was upgraded by research analysts at Benchmark to a “strong-buy” rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other research firms also recently commented on ALGM. Needham & Company LLC increased their target price on Allegro MicroSystems from $55.00 to $57.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Morgan Stanley boosted their target price on shares of Allegro MicroSystems from $51.00 to $52.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Evercore restated an “outperform” rating and issued a $53.00 price target on shares of Allegro MicroSystems in a research report on Friday, May 8th. Wells Fargo & Company increased their price objective on shares of Allegro MicroSystems from $48.00 to $56.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Finally, Jefferies Financial Group restated a “buy” rating and set a $62.00 price objective on shares of Allegro MicroSystems in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $53.45.

Allegro MicroSystems Price Performance

Shares of ALGM stock opened at $44.39 on Wednesday. The firm has a market cap of $8.27 billion, a P/E ratio of 739.96, a P/E/G ratio of 1.39 and a beta of 1.94. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.70 and a quick ratio of 2.33. Allegro MicroSystems has a 1-year low of $22.41 and a 1-year high of $71.77. The firm has a fifty day moving average of $50.48 and a two-hundred day moving average of $43.29.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, July 30th. The company reported $0.23 earnings per share 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 company had revenue of $259.24 million during the quarter, compared to the consensus estimate of $251.44 million. During the same quarter in the previous year, the firm earned $0.09 EPS. The company’s 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. As a group, research analysts anticipate that Allegro MicroSystems will post 0.65 earnings per share for the current fiscal year.

Insider Buying and Selling at Allegro MicroSystems

In other news, 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 transaction, the senior vice president owned 69,687 shares of the company’s stock, valued at $3,673,898.64. The trade was a 6.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Ian Kent sold 2,642 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $41.56, for a total transaction of $109,801.52. Following the sale, the senior vice president directly owned 25,392 shares of the company’s stock, valued at approximately $1,055,291.52. This represents a 9.42% decrease in their ownership of the stock. 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. Insiders have sold a total of 15,144 shares of company stock valued at $708,972 in the last ninety days. 0.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in shares of Allegro MicroSystems during the 2nd quarter valued at $966,975,000. Invesco Ltd. raised its position in Allegro MicroSystems by 44.0% during the fourth quarter. Invesco Ltd. now owns 7,651,051 shares of the company’s stock valued at $201,835,000 after buying an additional 2,338,624 shares during the period. State Street Corp increased its holdings in shares of Allegro MicroSystems by 1.5% in the 4th quarter. State Street Corp now owns 5,359,488 shares of the company’s stock valued at $141,383,000 after purchasing an additional 78,203 shares during the period. Adage Capital Partners GP L.L.C. lifted its position in Allegro MicroSystems by 77.8% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company’s stock worth $73,968,000 after buying an additional 1,227,317 shares in the last quarter. Finally, Alliancebernstein L.P. raised its holdings in shares of Allegro MicroSystems by 189.4% during the second quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company’s stock worth $94,360,000 after acquiring an additional 1,806,183 shares in the last quarter. Institutional investors 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.