How to Buy Allegro Microsystems Stock
Allegro Microsystems Inc
Allegro MicroSystems, Inc. designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems.
Allegro Microsystems stock last closed at $31.94, down 1.54% from the previous day, and has increased 43.68% in one year. It has overperformed other stocks in the Semiconductors industry by 0.12 percentage points. Allegro Microsystems stock is currently +61.31% from its 52-week low of $19.80, and -39.79% from its 52-week high of $53.05.
There are currently 192.38M ALGM shares outstanding. The market cap of ALGM is $6.14B. In the last 24 hours, 961,999 ALGM shares were traded.
How to Buy Allegro Microsystems Stock
Not sure how to invest in Allegro Microsystems stock? Here's how.
- Decide where to buy Allegro Microsystems stock: You need to pick an online brokerage, but don't worry - we've tested dozens of stock brokerages and apps to help you figure out where to buy Allegro Microsystems stock.
- Create your brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've identified.
- Fund your investment account: Select your payment method and add your information.
- Evaluate Allegro Microsystems stock: The Allegro Microsystems ticker symbol is ALGM. Is Allegro Microsystems stock a good investment? Should you buy shares of ALGM? How do ALGM's underlying business fundamentals look? Do top analysts think Allegro Microsystems is a good buy? Why has ALGM's stock price moved recently? (Hint: Our stock market research tools can help you understand if ALGM is a good stock to buy).
- Execute your ALGM purchase: Decide if you will purchase ALGM shares at the current market price or use a limit order to buy ALGM shares at a given price.
- Monitor your ALGM position: Create a watchlist to get live updates on your new investment in Allegro Microsystems stock.
Step 1: Decide where to buy Allegro Microsystems stock
You will need a brokerage account to access the NASDAQ market and buy ALGM shares.
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Open eToro AccountStep 2: Create your brokerage account
Now that you've picked your brokerage, the next step is to fill out some personal details so you can buy ALGM today.
How to Create a New Account on eToro
- Click here to get started.
- Input your personal data to open your new trading account.
- Send your data by pressing the "Create Account" button.
Step 3: Fund your investment account
Now that you have created your account on one of the most highly reviewed stock apps, you can securely and quickly fund your account:
Watch this video walkthrough for more details transferring funds into your new investment account.
Step 4: Evaluate Allegro Microsystems stock
Once you have selected the best place to buy Allegro Microsystems stock, it's important to research their stock before you buy, so you truly understand the risk as well as the upside.
Allegro Microsystems shares at a glance
Allegro Microsystems Fundamentals
WallStreetZen was built to help part-time investors do more in-depth fundamental analysis in less time.
You can see all of the due diligence checks on ALGM's stock page.
Is ALGM stock undervalued or overvalued?
You can use a variety of different financial metrics, analyses, models, and charts to gauge ALGM's intrinsic value.
Using relative valuations methods:
- ALGM could be undervalued based on its P/E ratio of 25.76x, relative to Semiconductors industry P/E ratio of -250.4x
- ALGM could be overvalued based on its P/B ratio of 5.99x, relative to Semiconductors industry P/B ratio of 5.51x
You can access more valuation analysis on ALGM's stock here.
ALGM Financial Health
Signs that ALGM is financially healthy:
- There are more short-term assets than short-term liabilities on the ALGM balance sheet.
- ALGM has a low debt to equity ratio of 0.2.
- ALGM's operating cash flow of $206.32M allows it to safely service it's debt of $46.39M.
- ALGM earnings of $269.73M is not enough to cover its interest payments.
- ALGM profit margin has gone up from 12.8% to 23% in the past year.
- There are more short-term assets than long-term liabilities on the ALGM balance sheet.
Is it a good time to buy Allegro Microsystems stock, according to Wall Street analysts?
Out of 4 Wall Street analysts who monitor ALGM, the consensus analyst rating on ALGM is a Strong Buy
It's important to keep in mind that analyst ratings are not recommendations, nor are they financial advice.
Latest ALGM Analyst Ratings
Blake Friedman, an analyst from Bank of America initiates coverage on ALGM with a hold rating and announces their ALGM price target of $36.00, on Sep 29, 2023.
Quinn Bolton, a top 1% analyst from Needham reiterates ALGM with a buy rating and maintains their ALGM price target from $50.00 to $50.00, on Aug 9, 2023.
Gary Mobley, a top 12% analyst from Wells Fargo maintains ALGM with a strong buy rating and raises their ALGM price target from $52.00 to $60.00, on Jul 26, 2023.
Wells Fargo's Gary Mobley raised their price target on Allegro Microsystems Inc (NASDAQ: ALGM) by 15.38% from $52.00 to $60.00 on 2023/07/26. The analyst maintained their Strong Buy rating on the stock.
In a preview of the company's Q1 2024 earnings report, set for release on 2023/08/01, Mobley said that "continued resiliency in auto and industrial end markets is why they remain confident in Wells Fargo's above consensus FY 2024 and FY 2025 estimates on Allegro Microsystems.
The analyst cautioned on valuation, however, pointing out that "given the YTD run in the shares, a significant beat and raise in 1H 2024 will be required to maintain the stock's outperformance."
Footnotes
Yahoo Finance reports that the current consensus EPS estimate for Allegro Microsystems Q1 2024 is $0.37 which, if achieved, would represent a 54.2% increase over Q1 2023's $0.24.
Vijay Rakesh, a top 1% analyst from Mizuho maintains ALGM with a strong buy rating and raises their ALGM price target from $50.00 to $56.00, on Jul 20, 2023.
Blayne Curtis, a top 5% analyst from Barclays maintains ALGM with a strong buy rating and raises their ALGM price target from $50.00 to $60.00, on Jul 20, 2023.
You can dive deeper into what analysts are forecasting on the Allegro Microsystems stock forecast page.
Metrics for Advanced ALGM Traders
ALGM Growth Metrics
Last year, ALGM earnings were $237.96M. During the past 3 year, ALGM's earnings have gone up by -87.88% per year. This was slower than the Semiconductors industry average of 18.69%.
Last year, ALGM revenue was $1.03B. In the past three year, ALGM's revenue has grown by 88.28% per year. This was faster than the Semiconductors industry average of 16%.
You can analyze ALGM's earnings and revenue performance here.
Who is buying/selling ALGM?
Over the last 12 months, insiders at ALGM have sold more shares than they have bought.
Derek Dantilio, SVP CFO Treasurer of ALGM, was the latest ALGM insider to buy. They bought $50,041.44 worth of ALGM stock on Sep 15, 2023.
Research more about who owns ALGM shares here.
Can I get consistent income from ALGM stock?
No, Allegro Microsystems doesn't provide an income stream by paying out dividends.
ALGM Social Trading Data
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Step 5: Execute your ALGM purchase
There are two main options:
- Market order: A market order is an order to buy or sell a stock at the best possible price.
Market orders are mostly fine for most investors. - Limit order: A limit order enables you to buy or sell a security at a specific price (or better).
If you want to ensure you're buying or selling at a specific dollar amount limit, use a limit order.
Press the Open button and your broker will execute your order.
If you want additional help with buying stocks on eToro, watch the how to video below:
Step 6: Monitor your ALGM position
Now that you own some ALGM stock, you'll want to keep up with your new shares.
Put ALGM on a watchlist to see the latest developments about your ALGM stock.
ALGM Feed
How to Buy Stock in Allegro Microsystems
To reiterate, here are the 6 steps to buy Allegro Microsystems stock:
- Decide where to buy Allegro Microsystems stock
- Create your brokerage account
- Fund your investment account
- Evaluate Allegro Microsystems stock
- Execute your ALGM purchase
- Monitor your ALGM position
If you need a place to buy stocks, eToro is our recommended option.
Get Started with eToro TodayIf you would like to track your investment in Allegro Microsystems, create a watchlist on WallStreetZen today.
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