Allegro Microsystems Inc NASDAQ:ALGM Price, Chart, News & Insight

NASDAQ:ALGM

Allegro MicroSystems (ALGM) Stock Falls After TD Cowen Lowers Price Target

Allegro MicroSystems (NASDAQ: ALGM) shares fell 7.3% on Monday after TD Cowen lowered its price target on the semiconductor company to $66 from $70 while maintaining its "Buy" rating.

Although the firm kept its positive recommendation, the reduced price target signaled a more cautious near-term outlook, prompting investors to take profits after the stock's recent gains. Price target cuts, even when accompanied by a Buy rating, can weigh on sentiment by suggesting more limited upside or slower earnings growth than previously anticipated.

The move comes as investors continue to closely monitor demand across the semiconductor industry. While AI-related chipmakers have continued to benefit from strong investment in artificial intelligence infrastructure, companies with greater exposure to industrial, automotive, and analog semiconductor markets have faced a more mixed demand environment.

Allegro remains well positioned in automotive power and sensing applications, where long-term trends such as electric vehicles, advanced driver assistance systems (ADAS), and industrial automation continue to support demand. However, investors remain cautious about the pace of recovery in broader semiconductor end markets.

Despite Monday's sharp decline, TD Cowen's decision to maintain its Buy rating suggests the firm continues to see attractive long-term potential for Allegro MicroSystems. Investors will now look ahead to the company's next earnings report for updates on customer demand, inventory normalization, and management's outlook for the remainder of the year.

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Global Finance News 07-14-26

Allegro MicroSystems (ALGM) Stock Surges 15% After Mizuho Raises Price Target

Allegro MicroSystems (NASDAQ: ALGM) shares jumped nearly 15% on Monday after Mizuho raised its price target on the semiconductor company, reinforcing optimism about its recovery prospects and long-term growth opportunities.

The brokerage increased its price target to $67 from $54 while maintaining an Outperform rating, signaling renewed confidence in the company's outlook as demand for power and sensing semiconductors improves.

Mizuho Sees Greater Upside

The higher price target reflects Mizuho's expectation that Allegro MicroSystems is well positioned to benefit from improving demand across automotive and industrial markets, particularly as electric vehicle adoption and industrial automation continue to drive semiconductor content higher.

Allegro's portfolio of power management and magnetic sensing chips plays a critical role in electric vehicles, advanced driver assistance systems (ADAS), factory automation, and energy-efficient applications.

Semiconductor Sector Strength Supports Shares

The analyst upgrade came during a strong session for semiconductor stocks, with investors rotating back into chipmakers as improving market sentiment and continued optimism surrounding AI infrastructure and next-generation electronics lifted the sector.

While Allegro is not a direct AI infrastructure supplier, the company is viewed as a long-term beneficiary of structural growth trends in automotive electrification and industrial technology.

Why ALGM Stock Rose

Investors responded positively to several catalysts:

* Mizuho raised its price target to $67 from $54.
* The firm reiterated its Outperform rating.
* Improving sentiment toward semiconductor stocks.
* Continued long-term growth opportunities in electric vehicles and industrial automation.

The combination of a bullish analyst update and favorable sector momentum helped propel Allegro MicroSystems shares roughly 15% higher, making the stock one of Monday's strongest performers in the semiconductor sector.

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WS Investor 06-30-26

Allegro MicroSystems Q4 and FY 2025 Results: Revenue Declines Sharply Year-over-Year but Sequential Momentum Builds

Allegro MicroSystems reported Q4 FY25 revenue of $193 million, up 8% sequentially but down 20% year-over-year, reflecting a continued recovery from earlier softness. Automotive sales fell 23% year-over-year to $141 million, and industrial/other sales declined 11% to $52 million. GAAP net loss for the quarter was $15 million (EPS of -$0.08), while non-GAAP EPS came in at $0.06.

Full-year FY25 sales declined 31% to $725 million. Automotive revenue fell 28% and industrial/other declined 38%. The company posted a GAAP net loss of $73 million for the year (EPS of -$0.39), compared to $153 million in profit the year prior. On a non-GAAP basis, FY25 EPS was $0.24, down from $1.35.

Gross margin contracted to 44.3% for the year (non-GAAP: 48.0%) from 54.8% (non-GAAP: 56.3%) in FY24, driven by lower sales and adverse mix. Operating cash flow was $62 million for FY25, down from $182 million a year earlier. Free cash flow dropped to $22 million from $57 million.

For Q1 FY26, Allegro expects revenue between $192 million and $202 million, implying ~18% year-over-year growth at the midpoint. Gross margin is expected between 46% and 48%, and non-GAAP EPS is projected in the $0.06 to $0.10 range.

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Global Finance News 05-09-25

Allegro MicroSystems, Inc. has appointed Michael C. Doogue as President and CEO, effective February 23, 2025. Doogue, formerly the company’s Executive Vice President and CTO, replaces Vineet Nargolwala, who is stepping down. Doogue’s employment agreement includes a $700,000 annual salary, a 125% target bonus, and a potential $6 million equity grant. If terminated without cause or upon a change in control, he will receive severance benefits, including salary, bonus, healthcare, and equity acceleration. Nargolwala will receive severance benefits per his previous agreement.

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Global Finance News 03-12-25

Allegro MicroSystems, Inc. announced that its Board of Directors has appointed Michael C. Doogue as President and Chief Executive Officer, effective immediately. Mr. Doogue, previously the company’s Executive Vice President and Chief Technology Officer, has also been elected as a director.

Mr. Doogue, age 49, has held leadership roles at Allegro, including Senior Vice President of Technology and Products, where he oversaw all business units. As part of his new role, he will receive an annual base salary of $700,000, a target annual bonus of 125% of his salary, and consideration for an equity award valued at $6 million in the next annual grant cycle.

The appointment follows the departure of Vineet Nargolwala, who has stepped down as President, CEO, and Board member. Allegro has entered into a separation agreement with Mr. Nargolwala, under which he will receive severance benefits as outlined in his original employment contract, contingent on a general release of claims and compliance with restrictive covenants.

source: Allegro MicroSystems, Inc., SEC Form 8-K, February 24, 2025.

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WS News 02-24-25

Allegro MicroSystems announced the election of Krishna G. Palepu to its Board of Directors as a Class II Director, effective January 31, 2025. He will serve until the company's 2025 annual meeting of shareholders and will also take on the role of Chairperson and member of the Nominating and Governance Committee, as well as a member of the Strategy Committee.

The Board has determined that Dr. Palepu qualifies as an independent director under Nasdaq and SEC rules. His appointment fills a vacancy on the Board, as outlined in the company's Stockholders Agreement with Sanken Electric Co., Ltd.

In connection with his appointment, the company entered into an indemnification agreement with Dr. Palepu, and he will receive the same compensation as other directors, prorated from the date of his election.

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The Investor 02-03-25

Allegro MicroSystems reported third-quarter fiscal 2025 revenue of $178 million, surpassing the midpoint of guidance but declining 30% year-over-year. Automotive sales, which make up the majority of revenue, fell 33%, while industrial and other sales declined 21%. The company posted a GAAP net loss of $6.8 million, or $(0.04) per share, compared to a net income of $33.4 million in the prior year. On a non-GAAP basis, diluted EPS was $0.07, down from $0.32 a year earlier.

Gross margin on a GAAP basis declined to 45.7% from 52.5% in Q3 2024, while non-GAAP gross margin was 49.1%. Operating expenses remained flat sequentially at $81.3 million but declined from $97.1 million a year earlier. Adjusted EBITDA was $30.3 million, down from $87.2 million in Q3 2024.

For the fourth quarter, Allegro projects revenue between $180 million and $190 million, with non-GAAP gross margin between 46% and 48%. The company expects operating expenses to rise 5% sequentially due to annual payroll tax resets, and interest expense to be approximately $6 million. Non-GAAP diluted EPS is forecast between $0.03 and $0.07.

CEO Vineet Nargolwala emphasized Allegro’s continued investment in new magnetic sensing and power products, positioning the company for long-term growth despite short-term challenges.

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European Investor 01-30-25

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