Allegro Microsystems (NASDAQ:ALGM) underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 2 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 2 | 0 | 1 | 0 | 0 |
Analysts have set 12-month price targets for Allegro Microsystems, revealing an average target of $26.33, a high estimate of $31.00, and a low estimate of $22.00. This current average has decreased by 6.53% from the previous average price target of $28.17.
Understanding Analyst Ratings: A Comprehensive Breakdown
The perception of Allegro Microsystems by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Timothy Arcuri | UBS | Lowers | Buy | $22.00 | $30.00 |
| Blayne Curtis | Barclays | Lowers | Overweight | $22.00 | $30.00 |
| Vijay Rakesh | Mizuho | Raises | Outperform | $31.00 | $28.00 |
| Quinn Bolton | Needham | Maintains | Buy | $30.00 | $30.00 |
| Joseph Moore | Morgan Stanley | Raises | Equal-Weight | $23.00 | $21.00 |
| Quinn Bolton | Needham | Maintains | Buy | $30.00 | $30.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Allegro Microsystems. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Allegro Microsystems compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Allegro Microsystems's stock. This analysis reveals shifts in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Allegro Microsystems's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Allegro Microsystems analyst ratings.
All You Need to Know About Allegro Microsystems
Allegro Microsystems Inc is a designer, developer, fabless manufacturer, and marketer of sensor ICs and application-specific analog power ICs for automotive and industrial markets. Its Sensor IC allows customers to precisely measure motion, speed, position, and current, and Power ICs include high-temperature and high-voltage capable motor drivers, power management, and LED driver ICs. Its products are divided into three categories such as SENSE which includes Current Sensors, Switches and Latches, and Interface ICs among others; REGULATE which includes Regulators, ClearPower Modules, and LED Drivers; and DRIVE which includes BLDC Drivers, Brush DC, and others. Key revenue for the company is generated from Greater China and the rest from the United States, Japan, Europe, and other regions.
Key Indicators: Allegro Microsystems's Financial Health
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Negative Revenue Trend: Examining Allegro Microsystems's financials over 3M reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -30.24% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -3.86%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Allegro Microsystems's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.73% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Allegro Microsystems's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.47%, the company showcases efficient use of assets and strong financial health.
Debt Management: Allegro Microsystems's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.43, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Basics of Analyst Ratings
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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