Jefferies Financial Group Forecasts Strong Price Appreciation for Allegro MicroSystems (NASDAQ:ALGM) Stock

Allegro MicroSystems (NASDAQ:ALGM) had its price objective boosted by equities research analysts at Jefferies Financial Group from $37.00 to $43.00 in a report released on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Jefferies Financial Group’s target price would suggest a potential upside of 16.50% from the company’s current price.

Several other research analysts have also commented on ALGM. Bank of America lifted their price target on Allegro MicroSystems from $36.00 to $39.00 and gave the stock a “buy” rating in a report on Wednesday, January 21st. Weiss Ratings restated a “sell (e+)” rating on shares of Allegro MicroSystems in a research report on Monday, December 29th. Barclays lifted their target price on shares of Allegro MicroSystems from $35.00 to $46.00 and gave the stock an “overweight” rating in a research note on Friday. Morgan Stanley increased their price target on shares of Allegro MicroSystems from $35.00 to $45.00 and gave the company an “equal weight” rating in a research note on Friday. Finally, Needham & Company LLC raised their price target on shares of Allegro MicroSystems from $37.00 to $41.00 and gave the stock a “buy” rating in a report on Thursday. Nine equities research 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. According to MarketBeat.com, Allegro MicroSystems has a consensus rating of “Moderate Buy” and a consensus target price of $43.50.

Allegro MicroSystems Trading Down 2.8%

Shares of Allegro MicroSystems stock 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 stock’s 50 day simple moving average is $29.28 and its 200-day simple moving average is $29.79. The stock has a market cap of $6.83 billion, a P/E ratio of -461.38 and a beta of 1.61. Allegro MicroSystems has a 1-year low of $16.38 and a 1-year high of $39.89.

Allegro MicroSystems (NASDAQ:ALGM) last posted 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 firm had revenue of $229.21 million during the quarter, compared to analysts’ expectations of $220.78 million. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.The business’s revenue for the quarter was up 28.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.07 earnings per share. Analysts predict that Allegro MicroSystems will post 0.01 EPS for the current fiscal year.

Institutional Trading of Allegro MicroSystems

Hedge funds have recently bought and sold shares of the company. Hantz Financial Services Inc. raised its holdings in Allegro MicroSystems by 86.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 901 shares of the company’s stock valued at $26,000 after acquiring an additional 419 shares during the last quarter. Quent Capital LLC purchased a new stake in shares of Allegro MicroSystems in the third quarter valued at $28,000. Farther Finance Advisors LLC increased its stake in Allegro MicroSystems by 815.4% in the fourth quarter. Farther Finance Advisors LLC now owns 2,142 shares of the company’s stock valued at $57,000 after purchasing an additional 1,908 shares during the last quarter. NewEdge Advisors LLC lifted its position in Allegro MicroSystems by 12,315.0% during the third quarter. NewEdge Advisors LLC now owns 2,483 shares of the company’s stock worth $73,000 after buying an additional 2,463 shares during the period. Finally, Nisa Investment Advisors LLC lifted its position in Allegro MicroSystems by 158.8% during the second quarter. Nisa Investment Advisors LLC now owns 2,210 shares of the company’s stock worth $76,000 after buying an additional 1,356 shares during the period. Institutional investors and hedge funds own 56.45% of the company’s stock.

More Allegro MicroSystems News

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.