Allegro MicroSystems, Inc. (ALGM) Stock Analysis
Technology · Semiconductors
Sell if holding. At $40.81, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Technology): -0.8.
Allegro MicroSystems designs magnetic sensor ICs and power ICs for automotive and industrial markets, with automotive customers representing ~74% of net sales in fiscal 2025. Revenue is generated from sensor ICs (Hall-effect, TMR, position) and power ICs (motor drivers, LED... Read more
Sell if holding. At $40.81, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Technology): -0.8. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.5/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 72d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent Developments — Allegro MicroSystems, Inc.
Latest news
- Allegro MicroSystems (ALGM) Reports Q1: Everything You Need To Know Ahead Of Earnings - StockStory — StockStory neutral
- Allegro MicroSystems (ALGM) Reports Q1: Everything You Need To Know Ahead Of Earnings - TradingView — TradingView neutral
- Has Allegro MicroSystems (ALGM) Outpaced Other Computer and Technology Stocks This Year? - Yahoo Finance — Yahoo Finance positive
- Allegro MicroSystems, IBD stock of the day, surges ahead of earnings - MSN — MSN positive
- Allegro MicroSystems, IBD Stock Of The Day, Surges Ahead Of Earnings - Investor's Business Daily — Investor's Business Daily positive
Generated 2026-05-20T20:21:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $40.81, A.R:R 1.0:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Technology): -0.8. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $39.45. Score 5.5/10, moderate confidence.
Take-profit target: $47.34 (+14.5% upside). Prior stop was $39.45. Stop-loss: $39.45.
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Technology): -0.8; Negative momentum.
Allegro MicroSystems, Inc. trades at a P/E of N/A (forward 28.1). TrendMatrix value score: 5.8/10. Verdict: Sell.
19 analysts cover ALGM with a consensus score of 4.2/5. Average price target: $54.
What does Allegro MicroSystems, Inc. do?Allegro MicroSystems designs magnetic sensor ICs and power ICs for automotive and industrial markets, with automotive...
Allegro MicroSystems designs magnetic sensor ICs and power ICs for automotive and industrial markets, with automotive customers representing ~74% of net sales in fiscal 2025. Revenue is generated from sensor ICs (Hall-effect, TMR, position) and power ICs (motor drivers, LED drivers, gate drivers) sold globally to tier-1 automotive suppliers and industrial OEMs.