Allegro MicroSystems (NASDAQ:ALGM) Shares Up 7.2% After Analyst Upgrade

Allegro MicroSystems, Inc. (NASDAQ:ALGM) rose 7.2% during trading on Friday after Needham & Company LLC raised their price target on the stock from $41.00 to $45.00. Needham & Company LLC currently has a buy rating on the stock. Allegro MicroSystems traded as high as $39.10 and last traded at $38.8870. Approximately 2,468,194 shares traded hands during trading, a decline of 17% from the average daily volume of 2,989,076 shares. The stock had previously closed at $36.26.

Other equities research analysts have also issued research reports about the company. Morgan Stanley raised Allegro MicroSystems from an “equal weight” rating to an “overweight” rating and set a $51.00 target price on the stock in a research report on Friday, February 13th. Wells Fargo & Company lifted their price objective on shares of Allegro MicroSystems from $45.00 to $48.00 and gave the company an “overweight” rating in a report on Wednesday, February 11th. Barclays increased their target price on shares of Allegro MicroSystems from $35.00 to $46.00 and gave the stock an “overweight” rating in a report on Friday, January 30th. Evercore lifted their price target on shares of Allegro MicroSystems from $37.00 to $49.00 and gave the company an “outperform” rating in a research note on Friday, October 31st. Finally, Jefferies Financial Group reissued a “buy” rating and set a $45.00 price target on shares of Allegro MicroSystems in a research report on Thursday. Ten equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Allegro MicroSystems has a consensus rating of “Moderate Buy” and an average target price of $45.00.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ALGM. Hantz Financial Services Inc. raised its holdings in shares of 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 purchasing an additional 419 shares during the period. Quent Capital LLC acquired a new position in Allegro MicroSystems during the third quarter worth approximately $28,000. Kestra Advisory Services LLC acquired a new position in Allegro MicroSystems during the fourth quarter worth approximately $34,000. CIBC Private Wealth Group LLC raised its stake in Allegro MicroSystems by 14,844.4% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company’s stock valued at $35,000 after buying an additional 1,336 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its position in shares of Allegro MicroSystems by 85.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,449 shares of the company’s stock valued at $38,000 after buying an additional 669 shares during the last quarter. 56.45% of the stock is currently owned by institutional investors and hedge funds.

Allegro MicroSystems Stock Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 3.65 and a quick ratio of 2.39. The stock has a 50-day moving average price of $33.13 and a 200-day moving average price of $30.45. The company has a market capitalization of $7.21 billion, a price-to-earnings ratio of -486.63 and a beta of 1.63.

Allegro MicroSystems (NASDAQ:ALGM) last posted its quarterly earnings results on Thursday, January 29th. The company reported $0.15 earnings per share 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 for the quarter, compared to analysts’ expectations of $220.78 million. During the same quarter in the prior year, the business earned $0.07 EPS. The firm’s revenue for the quarter was up 28.9% on a year-over-year basis. As a group, analysts forecast that Allegro MicroSystems, Inc. will post 0.01 earnings per share for the current year.

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.