Is Allegro MicroSystems Inc. (NASDAQ:ALGM) an excellent stock to buy at the moment?

The price of Allegro MicroSystems Inc. (NASDAQ: ALGM) closed at $46.03 in the last session, up 3.51% from day before closing price of $44.47. In other words, the price has increased by $+1.56 from its previous closing price. On the day, 1656379 shares were traded. ALGM stock price reached its highest trading level at $46.31 during the session, while it also had its lowest trading level at $43.96.

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We take a closer look at ALGM’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 27.06 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 75.71. For the most recent quarter (mrq), Quick Ratio is recorded 3.60 and its Current Ratio is at 4.50. In the meantime, Its Debt-to-Equity ratio is 0.03 whereas as Long-Term Debt/Eq ratio is at 0.03.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Cowen on May 25, 2022, initiated with a Outperform rating and assigned the stock a target price of $30.

On November 23, 2020, Needham started tracking the stock assigning a Buy rating and target price of $27.Needham initiated its Buy rating on November 23, 2020, with a $27 target price.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Feb 08 when Lury Richard R. sold 6,000 shares for $42.58 per share. The transaction valued at 255,480 led to the insider holds 27,663 shares of the business.

Lynch Susan D bought 240 shares of ALGM for $9,967 on Feb 03. The Director now owns 12,523 shares after completing the transaction at $41.53 per share. On Feb 02, another insider, OEP SKNA, L.P., who serves as the 10% Owner of the company, sold 4,980,000 shares for $37.76 each. As a result, the insider received 188,044,800 and left with 17,649,247 shares of the company.

Valuation Measures:

As of this moment, Allegro’s Price-to-Earnings (P/E) ratio for their current fiscal year is 58.86, and their Forward P/E ratio for the next fiscal year is 34.17. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 4.53. For the stock, the TTM Price-to-Sale (P/S) ratio is 10.00 while its Price-to-Book (P/B) ratio in mrq is 9.86.

Stock Price History:

Over the past 52 weeks, ALGM has reached a high of $47.67, while it has fallen to a 52-week low of $19.20. The 50-Day Moving Average of the stock is 39.32, while the 200-Day Moving Average is calculated to be 28.46.

Shares Statistics:

According to the various share statistics, ALGM traded on average about 1.61M shares per day over the past 3-months and 1.6M shares per day over the past 10 days. A total of 191.33M shares are outstanding, with a floating share count of 87.51M. Insiders hold about 0.70% of the company’s shares, while institutions hold 48.50% stake in the company. Shares short for ALGM as of Jan 30, 2023 were 7.26M with a Short Ratio of 6.62M, compared to 6.4M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 3.79% and a Short% of Float of 10.81%.

Earnings Estimates

The company has 7 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.36 for the current quarter, with a high estimate of $0.36 and a low estimate of $0.36, while EPS last year was $0.21. The consensus estimate for the next quarter is $0.33, with high estimates of $0.35 and low estimates of $0.3.

Analysts are recommending an EPS of between $1.28 and $1.27 for the fiscal current year, implying an average EPS of $1.27. EPS for the following year is $1.34, with 7 analysts recommending between $1.4 and $1.21.

Revenue Estimates

According to 7 analysts, the current quarter’s revenue is expected to be $265.04M. It ranges from a high estimate of $265.3M to a low estimate of $264.9M. As of the current estimate, Allegro MicroSystems Inc.’s year-ago sales were $200.29M, an estimated increase of 32.30% from the year-ago figure. For the next quarter, 7 analysts are estimating revenue of $257.69M, an increase of 18.30% less than the figure of $32.30% in the same quarter last year. There is a high estimate of $267.6M for the next quarter, whereas the lowest estimate is $243.3M.

A total of 7 analysts have provided revenue estimates for ALGM’s current fiscal year. The highest revenue estimate was $969.5M, while the lowest revenue estimate was $969.1M, resulting in an average revenue estimate of $969.24M. In the same quarter a year ago, actual revenue was $768.67M, up 26.10% from the average estimate. Based on 7 analysts’ estimates, the company’s revenue will be $1.05B in the next fiscal year. The high estimate is $1.08B and the low estimate is $983.7M. The average revenue growth estimate for next year is up 8.10% from the average revenue estimate for this year.