In the preceding three months, 7 analysts have released ratings for Allegro Microsystems (NASDAQ:ALGM), presenting a wide array of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 2 | 0 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 4 | 2 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $34.29, along with a high estimate of $37.00 and a low estimate of $32.00. A decline of 8.32% from the prior average price target is evident in the current average.
Exploring Analyst Ratings: An In-Depth Overview
An in-depth analysis of recent analyst actions unveils how financial experts perceive Allegro Microsystems. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Joshua Buchalter | TD Cowen | Raises | Buy | $35.00 | $32.00 |
| Blayne Curtis | Jefferies | Announces | Buy | $37.00 | - |
| Blayne Curtis | Barclays | Lowers | Overweight | $32.00 | $35.00 |
| Joshua Buchalter | TD Cowen | Lowers | Buy | $32.00 | $35.00 |
| Vijay Rakesh | Mizuho | Lowers | Buy | $35.00 | $45.00 |
| Quinn Bolton | Needham | Lowers | Buy | $33.00 | $40.00 |
| Mark Lipacis | Evercore ISI Group | Announces | Outperform | $36.00 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Allegro Microsystems. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Allegro Microsystems compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Allegro Microsystems's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Allegro Microsystems's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Allegro Microsystems analyst ratings.
Get to Know Allegro Microsystems Better
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.
Understanding the Numbers: Allegro Microsystems's Finances
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Challenges: Allegro Microsystems's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -10.71%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Allegro Microsystems's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -2.96% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Allegro Microsystems's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.63%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Allegro Microsystems's ROA excels beyond industry benchmarks, reaching -0.46%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.24.
How Are Analyst Ratings Determined?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.