Free Trial
NASDAQ:ALGM

Allegro MicroSystems (ALGM) Stock Price, News & Analysis

$20.77
-0.28 (-1.33%)
(As of 10/8/2024 ET)

About Allegro MicroSystems Stock (NASDAQ:ALGM)

Key Stats

Today's Range
$20.43
$20.99
50-Day Range
$20.48
$25.40
52-Week Range
$20.41
$33.26
Volume
1.61 million shs
Average Volume
1.95 million shs
Market Capitalization
$4.02 billion
P/E Ratio
26.63
Dividend Yield
N/A
Price Target
$34.44
Consensus Rating
Buy

Company Overview

Allegro MicroSystems, Inc. is a leading designer and manufacturer of high-performance power and sensing semiconductors targeting the automotive and industrial markets. With over 50 years of industry experience, Allegro is known for its innovative solutions that enable advanced system performance, accuracy, and reliability.

Allegro MicroSystems was founded in 1990 and is headquartered in Manchester, New Hampshire. The company's mission is to provide innovative semiconductor solutions that improve modern industries' efficiency, safety, and sustainability. Allegro's core products include magnetic sensors, power management ICs, and motor drivers, which are used in a wide range of applications, including electric vehicles, robotics, and factory automation. The company has a global presence, with operations in the United States, Europe, and Asia.

Allegro's management team is led by Ravi Vig, who joined the company in 2019 as President and Chief Executive Officer. Vig has over 30 years of experience in the semiconductor industry, including leadership roles at Maxim Integrated and Freescale Semiconductor. Under his leadership, Allegro has strengthened its product portfolio, expanded its global footprint, and increased revenue growth.

Over the past few years, Allegro has demonstrated robust revenue growth, with revenue, net income, and gross profit margin all increasing. 

Allegro's current valuation metrics are slightly above industry peers, with a higher price-to-earnings ratio than peers. However, Allegro's strong financial performance and growth potential justify the premium valuation. In addition, the company's initial public offering was well-received by investors, reflecting positive sentiment toward Allegro's prospects.

The semiconductor industry is highly competitive, with a few dominant players, such as Texas Instruments and Analog Devices, and numerous smaller companies. However, Allegro's focus on power and sensing semiconductors for the automotive and industrial markets provides a unique competitive advantage. These markets require specialized solutions that can operate in challenging environments. Additionally, Allegro's focus on emerging technologies, such as electric vehicles and factory automation, positions the company for significant growth opportunities.

Allegro MicroSystems has several growth opportunities, including product development and expanding its reach into new markets. The company recently introduced several new products, including high-precision motor drivers, current sensors, and magnetic angle sensors, designed to meet the growing demand for advanced sensor technology. These products are well-positioned to benefit from the increasing adoption of electric vehicles, which require advanced sensor technology for safe and efficient operation.

In addition to expanding its product line, Allegro MicroSystems is also looking to expand its reach into new markets. The company has a strong presence in the automotive market but is also targeting the industrial and consumer electronics markets. By expanding its reach into these markets, Allegro MicroSystems can diversify its revenue streams and reduce its dependence on one market.

Allegro MicroSystems faces risks and challenges that could impact its future growth and profitability. One of the primary risks is the competitive nature of the semiconductor industry. Allegro MicroSystems faces intense competition from more established competitors, such as Texas Instruments and Analog Devices. These competitors have more significant resources and a more extensive customer base, which could make it challenging for Allegro MicroSystems to compete effectively.

Another risk is the potential for more supply chain disruptions. The semiconductor industry has been grappling with a global chip shortage, which has led to production delays and increased costs for many companies. Allegro MicroSystems could face similar challenges if it cannot secure adequate supplies of key components.

Allegro MicroSystems operates in a highly regulated industry, which could expose it to regulatory risks. Any changes in regulations related to data privacy, environmental regulations, or trade policies could have a significant impact on the company's operations and profitability.

Allegro MicroSystems Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks
53rd Percentile Overall Score

ALGM MarketRank™: 

Allegro MicroSystems scored higher than 53% of companies evaluated by MarketBeat, and ranked 397th out of 669 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    Allegro MicroSystems has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 8 buy ratings, no hold ratings, and no sell ratings.

  • Amount of Analyst Coverage

    Allegro MicroSystems has only been the subject of 2 research reports in the past 90 days.

  • Read more about Allegro MicroSystems' stock forecast and price target.
  • Price to Earnings Ratio vs. the Market

    The P/E ratio of Allegro MicroSystems is 26.63, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 123.10.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of Allegro MicroSystems is 26.63, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 227.60.

  • Price to Book Value per Share Ratio

    Allegro MicroSystems has a P/B Ratio of 3.54. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

  • Read more about Allegro MicroSystems' valuation and earnings.
  • Percentage of Shares Shorted

    8.19% of the float of Allegro MicroSystems has been sold short.
  • Short Interest Ratio / Days to Cover

    Allegro MicroSystems has a short interest ratio ("days to cover") of 4.
  • Change versus previous month

    Short interest in Allegro MicroSystems has recently increased by 11.74%, indicating that investor sentiment is decreasing significantly.
  • Dividend Yield

    Allegro MicroSystems does not currently pay a dividend.

  • Dividend Growth

    Allegro MicroSystems does not have a long track record of dividend growth.

  • Percentage of Shares Shorted

    8.19% of the float of Allegro MicroSystems has been sold short.
  • Short Interest Ratio / Days to Cover

    Allegro MicroSystems has a short interest ratio ("days to cover") of 4.
  • Change versus previous month

    Short interest in Allegro MicroSystems has recently increased by 11.74%, indicating that investor sentiment is decreasing significantly.
  • News Sentiment

    Allegro MicroSystems has a news sentiment score of 0.75. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.50 average news sentiment score of Computer and Technology companies.
  • News Coverage This Week

    MarketBeat has tracked 8 news articles for Allegro MicroSystems this week, compared to 5 articles on an average week.
  • Search Interest

    Only 2 people have searched for ALGM on MarketBeat in the last 30 days. This is a decrease of -75% compared to the previous 30 days.
  • MarketBeat Follows

    Only 1 people have added Allegro MicroSystems to their MarketBeat watchlist in the last 30 days. This is a decrease of -75% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, Allegro MicroSystems insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $897,851,015.00 in company stock.

  • Percentage Held by Insiders

    Only 0.50% of the stock of Allegro MicroSystems is held by insiders.

  • Percentage Held by Institutions

    56.45% of the stock of Allegro MicroSystems is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about Allegro MicroSystems' insider trading history.
Receive ALGM Stock News and Ratings via Email

Sign-up to receive the latest news and ratings for Allegro MicroSystems and its competitors with MarketBeat's FREE daily newsletter.

ALGM Stock News Headlines

Allegro MicroSystems (NASDAQ:ALGM) Hits New 1-Year Low - Time to Sell?
[SHOCKING] Crypto Document Leak…
The crypto market waits for no one. And my team of experts and I believe that a BIG move is right around the corner. That's why we're offering you instant access to the game-changing book that's transforming average investors into massive crypto successes.
See More Headlines

ALGM Stock Analysis - Frequently Asked Questions

Allegro MicroSystems' stock was trading at $30.27 at the start of the year. Since then, ALGM stock has decreased by 31.4% and is now trading at $20.77.
View the best growth stocks for 2024 here
.

Allegro MicroSystems, Inc. (NASDAQ:ALGM) released its quarterly earnings results on Thursday, August, 1st. The company reported $0.03 EPS for the quarter, topping the consensus estimate of $0.02 by $0.01. The firm's revenue was down 40.0% on a year-over-year basis.

Allegro MicroSystems (ALGM) raised $325 million in an initial public offering (IPO) on Thursday, October 29th 2020. The company issued 25,000,000 shares at $12.00-$14.00 per share. Barclays, Credit Suisse and Wells Fargo Securities served as the underwriters for the IPO and Jefferies, Mizuho Securities, Needham & Co. and SMBC Nikko were co-managers.

Top institutional shareholders of Allegro MicroSystems include SG Americas Securities LLC (0.01%). Insiders that own company stock include Electric Co Ltd Sanken, Skna LP Oep, Vineet A Nargolwala, Max R Glover, Michael Doogue, Derek D'antilio, Joanne Valente, Richard R Lury, Joseph R Martin, Susan D Lynch, Paul V Walsh Jr, Ravi Vig and Thomas C Jr Teebagy.
View institutional ownership trends
.

Shares of ALGM stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Company Calendar

Last Earnings
8/01/2024
Today
10/08/2024
Next Earnings (Estimated)
11/07/2024
Fiscal Year End
3/31/2025

Industry, Sector and Symbol

Industry
Semiconductors & related devices
Sub-Industry
Electronic Equipment
Current Symbol
NASDAQ:ALGM
Employees
4,040
Year Founded
N/A

Price Target and Rating

Average Stock Price Target
$34.44
High Stock Price Target
$37.00
Low Stock Price Target
$32.00
Potential Upside/Downside
+65.8%
Consensus Rating
Buy
Rating Score (0-4)
3.00
Research Coverage
8 Analysts

Profitability

Net Income
$152.70 million
Pretax Margin
11.74%

Debt

Sales & Book Value

Annual Sales
$937.99 million
Cash Flow
$1.43 per share
Book Value
$5.86 per share

Miscellaneous

Free Float
192,815,000
Market Cap
$4.02 billion
Optionable
Optionable
Beta
1.67
Ten Starter Stocks For Beginners to Buy Now Cover

Just getting into the stock market? These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies.

Get This Free Report

This page (NASDAQ:ALGM) was last updated on 10/8/2024 by MarketBeat.com Staff
From Our Partners