Allegro MicroSystems (NASDAQ:ALGM) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Allegro MicroSystems (NASDAQ:ALGM) had its target price upped by analysts at Wells Fargo & Company from $40.00 to $45.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Wells Fargo & Company‘s price objective points to a potential upside of 21.92% from the stock’s current price.

Several other analysts also recently commented on ALGM. TD Cowen raised their price objective on Allegro MicroSystems from $38.00 to $45.00 and gave the stock a “buy” rating in a research note on Friday. UBS Group boosted their price objective on shares of Allegro MicroSystems from $38.00 to $40.00 and gave the stock a “buy” rating in a research report on Friday, October 31st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Allegro MicroSystems in a report on Monday, December 29th. Mizuho set a $38.00 price target on shares of Allegro MicroSystems in a research report on Tuesday, December 16th. Finally, Wall Street Zen upgraded Allegro MicroSystems from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Nine analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $43.50.

Allegro MicroSystems Price Performance

Shares of ALGM stock opened at $36.91 on Friday. The firm’s 50 day moving average price is $29.28 and its two-hundred day moving average price is $29.79. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.48 and a current ratio of 3.65. The stock has a market cap of $6.83 billion, a PE ratio of -461.38 and a beta of 1.61. Allegro MicroSystems has a 52-week low of $16.38 and a 52-week high of $39.89.

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

Institutional Trading of Allegro MicroSystems

Several large investors have recently modified their holdings of ALGM. Bayforest Capital Ltd bought a new stake in shares of Allegro MicroSystems during the 2nd quarter worth approximately $650,000. Geode Capital Management LLC increased its holdings in Allegro MicroSystems by 0.7% in the 2nd quarter. Geode Capital Management LLC now owns 2,405,986 shares of the company’s stock worth $82,274,000 after purchasing an additional 17,902 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Allegro MicroSystems during the second quarter worth $481,000. KLP Kapitalforvaltning AS lifted its stake in shares of Allegro MicroSystems by 10.4% in the second quarter. KLP Kapitalforvaltning AS now owns 27,500 shares of the company’s stock worth $940,000 after acquiring an additional 2,600 shares during the period. Finally, Segall Bryant & Hamill LLC lifted its holdings in Allegro MicroSystems by 1.3% in the second quarter. Segall Bryant & Hamill LLC now owns 1,328,254 shares of the company’s stock valued at $45,413,000 after buying an additional 16,728 shares during the period. 56.45% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting 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.