In the preceding three months, 5 analysts have released ratings for Allegro Microsystems ( ALGM ) , presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $25.2, a high estimate of $30.00, and a low estimate of $21.00. Highlighting a 14.08% decrease, the current average has fallen from the previous average price target of $29.33.

Exploring Analyst Ratings: An In-Depth Overview

In examining recent analyst actions, we gain insights into how financial experts perceive Allegro Microsystems ( ALGM ). The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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 ( ALGM ). This insight gives a snapshot of analysts' perspectives on the current state of the company.

Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Allegro Microsystems's ( ALGM ) market position. Stay informed and make well-informed decisions with 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.

Allegro Microsystems's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Allegro Microsystems ( ALGM ) faced challenges, resulting in a decline of approximately -31.98% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Allegro Microsystems's ( ALGM ) financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -17.97%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Allegro Microsystems's ( ALGM ) ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -3.29%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -2.29%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Allegro Microsystems's ( ALGM ) debt-to-equity ratio is below the industry average at 0.45, reflecting a lower dependency on debt financing and a more conservative financial approach.

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.

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