Allegro MicroSystems (NASDAQ:ALGM) Stock Price Expected to Rise, TD Cowen Analyst Says

Allegro MicroSystems (NASDAQ:ALGM) had its target price lifted by equities researchers at TD Cowen from $38.00 to $45.00 in a report issued on Friday, Marketbeat.com reports. The firm currently has a “buy” rating on the stock. TD Cowen’s price target would suggest a potential upside of 21.92% from the company’s previous close.

ALGM has been the topic of several other reports. Needham & Company LLC increased their price objective on shares of Allegro MicroSystems from $37.00 to $41.00 and gave the company a “buy” rating in a report on Thursday. Mizuho set a $38.00 price target on shares of Allegro MicroSystems in a research note on Tuesday, December 16th. Wall Street Zen upgraded Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Allegro MicroSystems in a research note on Monday, December 29th. Finally, UBS Group raised their target price on Allegro MicroSystems from $38.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, October 31st. Nine investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $43.50.

Allegro MicroSystems Price Performance

NASDAQ:ALGM opened at $36.91 on Friday. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.65 and a quick ratio of 2.48. The company has a 50 day moving average price of $29.28 and a 200-day moving average price of $29.79. Allegro MicroSystems has a 1-year low of $16.38 and a 1-year high of $39.89. The firm has a market cap of $6.83 billion, a price-to-earnings ratio of -461.38 and a beta of 1.61.

Allegro MicroSystems (NASDAQ:ALGM) last released its quarterly earnings results on Thursday, January 29th. The company reported $0.15 EPS for the quarter, beating the consensus estimate of $0.14 by $0.01. The company had revenue of $229.21 million for the quarter, compared to analyst estimates of $220.78 million. Allegro MicroSystems had a negative net margin of 1.57% and a positive return on equity of 4.35%. The firm’s revenue was up 28.9% on a year-over-year basis. During the same quarter last year, the business earned $0.07 earnings per share. Equities research analysts forecast that Allegro MicroSystems will post 0.01 EPS for the current year.

Institutional Trading of Allegro MicroSystems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ALGM. State of New Jersey Common Pension Fund D grew its stake in shares of Allegro MicroSystems by 34.9% in the fourth quarter. State of New Jersey Common Pension Fund D now owns 92,928 shares of the company’s stock valued at $2,451,000 after buying an additional 24,046 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp purchased a new position in shares of Allegro MicroSystems in the 4th quarter valued at about $336,000. Pictet Asset Management Holding SA lifted its stake in Allegro MicroSystems by 19.5% in the fourth quarter. Pictet Asset Management Holding SA now owns 20,787 shares of the company’s stock worth $548,000 after acquiring an additional 3,387 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH lifted its position in shares of Allegro MicroSystems by 48.5% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 17,085 shares of the company’s stock worth $451,000 after purchasing an additional 5,581 shares during the last quarter. Finally, Evergreen Capital Management LLC purchased a new stake in Allegro MicroSystems during the 4th quarter worth about $212,000. 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: Q3 results beat expectations — Allegro reported $0.15 EPS (vs. $0.14 consensus) and $229.2M revenue (vs. ~$220.8M), with revenue up ~29% YoY; management provided revenue and EPS guidance that supported a bullish near‑term outlook. GlobeNewswire: Q3 Results
• Positive Sentiment: Multiple analyst price‑target raises — TD Cowen, Wells Fargo, Morgan Stanley and Jefferies raised targets (examples: TD Cowen and Wells Fargo to $45; Jefferies to $43), signaling institutional support and providing fresh upside narratives for traders. Benzinga: Analyst Coverage The Fly: TD Cowen Raise
• Positive Sentiment: Shares briefly rallied to multi‑year highs on the swing to profitability and the stronger sales outlook, reflecting momentum buying after the print. MSN: Stock Jumps
• Neutral Sentiment: Company guidance is roughly in line with consensus (Q4 EPS guide $0.140–$0.18; revenue $230–240M), so while supportive, it wasn’t an unambiguous upside surprise that would guarantee further multiple expansion. MSN: Guidance Details
• Neutral Sentiment: Investors can review the company presentation and full earnings call transcript for detail on product mix and end‑market exposure (automotive still dominant; data center exposure cited as a growth catalyst). Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Valuation and earnings‑quality concerns — a Seeking Alpha piece warns Allegro is “pricing in green shoots” with a demanding multiple (~8x sales) and that adjusted EPS is inflated by significant stock‑based compensation, suggesting true cash earnings are lower. That note likely prompted some profit‑taking. Seeking Alpha: Valuation Caution

Allegro MicroSystems Company Profile

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.