In the latest quarter, 5 analysts provided ratings for Allegro Microsystems ( ALGM ) , showcasing a mix of bullish and bearish perspectives.

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.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $26.2, a high estimate of $30.00, and a low estimate of $21.00. Witnessing a positive shift, the current average has risen by 0.77% from the previous average price target of $26.00.

Interpreting Analyst Ratings: A Closer Look

The standing of Allegro Microsystems ( ALGM ) among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Allegro Microsystems ( ALGM ). This offers insight into analysts' perspectives on the current state of the company.

Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Allegro Microsystems ( ALGM ) compared to the broader market.

Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Allegro Microsystems's ( ALGM ) stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Allegro Microsystems's ( ALGM ) market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Allegro Microsystems ( ALGM ) analyst ratings.

Delving into Allegro Microsystems's ( ALGM ) Background

Allegro Microsystems Inc ( ALGM ) 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.

A Deep Dive into Allegro Microsystems's Financials

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.

Revenue Challenges: Allegro Microsystems's ( ALGM ) revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -31.98%. This indicates 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: Allegro Microsystems's ( ALGM ) net margin is impressive, surpassing industry averages. With a net margin of -17.97%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Allegro Microsystems's ( ALGM ) ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.29%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Allegro Microsystems's ( ALGM ) ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.29%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.45, caution is advised due to increased financial risk.

Analyst Ratings: Simplified

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.