Allegro MicroSystems, Inc. (ALGM) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ALGM's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving av ...

Allegro MicroSystems (ALGM) FY 2025 Conference May 29, 2025 01:15 PM ET Speaker0 Alright, good afternoon. Welcome to one of the afternoon sessions at TD Cowen's fifty third annual TMT conference. I'm Josh Buchalter, semiconductor analyst at TD Cowen. Very pleased to be joined by Derek and Jeline from Allegro Microsystems. Thank you for joining us. I've got a bunch of questions lined up, but if if anyone in the audience has questions as well, please feel free to raise your hand and then we'll certainly get g ...

Investors in Allegro MicroSystems, Inc. (ALGM) need to pay close attention to the stock based on moves in the options market lately. That is because the June 20, 2025 $12.50 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

Company Overview - The company ships approximately 1.5 billion units annually to over 10,000 customers worldwide, with a portfolio of more than 1,500 products[24]. - The company’s product portfolio includes over 1,500 products, focusing on high-performance analog mixed-signal semiconductors, including magnetic sensor ICs and power ICs[65]. - The company employed approximately 4,060 full-time employees as of March 28, 2025, with 750 in research and development and 2,800 in operations and quality[100]. - Approximately 2,300 employees hold university and graduate-level degrees, with 990 located outside of factory locations, indicating a highly educated workforce[102]. - The company has a global footprint with 29 locations across four continents, with its primary internal assembly and testing facility located in Manila, Philippines, covering approximately 434,000 square feet[200]. Market Position and Strategy - The company is a leading provider of sensing and power solutions for vehicle electrification, with a focus on improving efficiency to comply with emissions regulations[31]. - The company aims to significantly expand its Served Available Market (SAM) by increasing semiconductor content per vehicle, particularly in the automotive sector, which is expected to see a meaningful increase due to technology shifts[51]. - The company plans to grow its magnetic sensor market share through the release of more products based on XtremeSense TMR technology[48]. - The company is leveraging its power IC products to increase total content within automotive and industrial applications, focusing on electrification and energy efficiency[49]. - The company is targeting adjacent growth markets by applying its intellectual property and technology, particularly in automotive applications and industrial clean energy[61]. Financial Performance - The company achieved approximately 50.7% of its net sales through distributors in fiscal year 2025, down from 52.9% in 2024 and 39.3% in 2023[76]. - The company has experienced a downturn in market demand over the past several quarters, primarily due to softening demand from customers and excess inventory digestion[98]. - The company’s net sales have historically been higher in the second half of the fiscal year compared to the first half, influenced by market conditions and product introductions[97]. - The average selling prices (ASPs) of products are generally declining, which may adversely affect gross margins and necessitate cost reductions[133]. - The company has experienced fluctuations in quarterly net sales and operating results, making accurate forecasting challenging[136]. Research and Development - As of March 28, 2025, the company had approximately 750 employees dedicated to research and development, with a nearly doubled intellectual property portfolio over the last three years[83]. - The company is investing in research and development focused on product design and automotive-grade technologies to maintain a competitive advantage in high-growth areas such as e-Mobility and clean energy[56]. - The company owns 1,942 active patents, including 966 U.S. patents, with expiration dates between 2025 and 2043, and has 487 pending patent applications[92]. Sustainability and ESG Efforts - The company is committed to sustainability efforts, focusing on energy efficiency and reducing emissions through its product portfolio while maintaining social responsibility in its operations[64]. - The company has implemented several energy, water, and waste reduction projects across its facilities as part of its ESG strategy[73]. - The company is a member of the Responsible Business Alliance, ensuring compliance with labor, human rights, and environmental standards among its suppliers[74]. Competition and Market Risks - The company faces intense competition and must continuously innovate to maintain its market position against competitors with greater resources[96]. - The company is exposed to risks from geopolitical changes, particularly in China-Taiwan relations, which could disrupt operations at wafer fabrication facilities[126]. - The cyclical nature of the semiconductor industry may limit the company's ability to maintain or improve net sales and profitability, with current downturns attributed to weak demand and excess inventory[130]. - The company faces risks from potential disruptions in the automotive market, which could negatively impact future growth and demand for products[131]. Employee Engagement and Management - The company’s engagement score for fiscal year 2025 is on par with industry benchmarks, indicating high employee satisfaction and pride in the organization[107]. - Employee turnover rates are closely monitored, with efforts to decrease voluntary turnover and increase retention through competitive compensation and development opportunities[106]. - The company has implemented key recruitment and retention strategies to attract top talent, including partnerships with colleges and universities[105]. Cybersecurity and IT Risks - The company has implemented a cybersecurity risk management program integrated into its overall enterprise risk management program, with key elements including risk assessments and a formal IT risk register[193]. - The company's cybersecurity governance includes oversight by the Audit Committee, which receives periodic reports on cybersecurity risks and incidents[195]. - The Chief Digital and Information Officer, with over 30 years of experience in information technology, is responsible for the overall cybersecurity risk management program[197]. Financial Liabilities and Capital Management - The company has $345.0 million in aggregate principal amount of debt outstanding as of March 28, 2025, with an additional $256.0 million of borrowings available under its revolving credit facility[167]. - The company may seek to sell additional equity or debt securities if capital resources are insufficient, leading to potential dilution for stockholders[166]. - The company must maintain a Total Net Leverage Ratio of no more than 4.00 to 1.00, which may limit its operational flexibility[168]. Future Outlook and Opportunities - The company anticipates growth in the automotive and industrial sectors, particularly with the increasing adoption of HEVs and EVs, which are expected to have higher sensor and power product content[146]. - The company is exploring new market opportunities in artificial intelligence, medical devices, and robotics, aiming to expand its addressable markets[149]. - End-user demand for HEVs, EVs, and green energy products is often dependent on government incentives, and any reduction or elimination of these incentives could negatively affect demand for the company's products[161].

Core Insights - Allegro MicroSystems, Inc. (ALGM) shows potential as a strong investment due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9] - Analysts exhibit growing optimism regarding Allegro's earnings prospects, which is expected to positively influence its stock price [2] - The Zacks Rank system, which evaluates stocks based on earnings estimate revisions, indicates that Allegro MicroSystems has a favorable ranking, suggesting strong future performance [3][8] Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.08 per share, reflecting a substantial increase of +166.67% compared to the previous year [5] - The Zacks Consensus Estimate for the current quarter has risen by 100% over the last 30 days, with no negative revisions reported [5] Current-Year Estimate Revisions - For the full year, the earnings estimate stands at $0.50 per share, representing an increase of +108.33% from the prior year [6] - The consensus estimate has seen a boost of 10.26% over the past month, with two estimates moving higher and only one negative revision [6][7] Zacks Rank and Performance - Allegro MicroSystems has achieved a Zacks Rank 2 (Buy), indicating strong potential for outperformance based on earnings estimate revisions [8] - Historical data shows that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500 [8] Stock Performance - The stock has experienced a notable gain of 52.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9]

Group 1 - Allegro MicroSystems, Inc. is highlighted as an automotive chipmaker with a positive outlook, suggesting a Buy rating for long-term investors [1] - The article emphasizes the importance of using market pullbacks as an opportunity to invest in Allegro MicroSystems [1] - The author has a background in technology analysis and is now also covering commodities and energy sectors, indicating a broad investment perspective [1]

Core Viewpoint - Allegro MicroSystems, Inc. will present at TD Cowen's 53rd Annual Technology, Media & Telecom Conference on May 29, 2025, highlighting its role in power and sensing semiconductor solutions for motion control and energy-efficient systems [1] Company Overview - Allegro MicroSystems, Inc. has over three decades of expertise in magnetic sensing and power integrated circuits (ICs), focusing on automotive, clean energy, and industrial automation [3] - The company emphasizes enhancing efficiency, performance, and sustainability through its solutions, reinforcing its status as a pioneer in "automotive grade" technology [3]

MAY 8, 2025 4QFY25 Investor Presentation This presentation may not be reproduced, forwarded to any person or published, in whole or in part. 2 4Q Financial & Business Update Company Overview Appendix ALLEGRO'S VALUES Introduction to our New CEO Forward-looking statements This presentation and the accompanying oral remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor pr ...

Core Viewpoint - Allegro MicroSystems, Inc. reported better-than-expected fourth-quarter financial results and provided first-quarter sales guidance above market estimates [1][2]. Financial Performance - The company posted adjusted earnings of $0.06 per share, surpassing market expectations of $0.05 per share [1][2]. - Quarterly sales reached $192.82 million, exceeding expectations of $185.28 million, representing an 8% sequential increase [1][2]. Future Guidance - For the first quarter, Allegro expects adjusted earnings between $0.06 and $0.10 per share, with sales projected between $192 million and $202 million [2]. Market Reaction - Following the earnings announcement, Allegro MicroSystems shares increased by 12.7%, closing at $21.07 [3]. Analyst Ratings - Needham analyst Quinn Bolton maintained a Buy rating on Allegro, lowering the price target from $30 to $25 [8]. - Barclays analyst Blayne Curtis maintained an Overweight rating, raising the price target from $22 to $23 [8].

Company Performance - Allegro MicroSystems reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.25 per share a year ago, representing an earnings surprise of 20% [1] - The company achieved revenues of $192.82 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.44%, but down from $240.58 million year-over-year [2] - Over the last four quarters, Allegro MicroSystems has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Allegro MicroSystems shares have declined approximately 14.5% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The current Zacks Rank for Allegro MicroSystems is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $192.27 million, and for the current fiscal year, it is $0.45 on revenues of $827.58 million [7] - The outlook for the Electronics - Semiconductors industry, where Allegro MicroSystems operates, is currently in the bottom 43% of Zacks industries, which may impact stock performance [8]