Allegro MicroSystems, Inc. (ALGM) Stock Analysis
Technology · Semiconductors
Sell if holding. Analyst target reached at $47.52 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: automotive OEM customers (73.8%).
Allegro MicroSystems designs and markets sensor ICs (magnetic sensors for motion, speed, position, current) and power ICs for automotive and industrial markets, shipping ~1.5 billion units annually to more than 10,000 customers worldwide. Automotive customers supplying OEMs... Read more
Sell if holding. Analyst target reached at $47.52 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: automotive OEM customers (73.8%). 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 5/7 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerautomotive OEM customers74%10-K Item 1A: 'Our customers that supply various systems and components to automotive OEMs accounted for 73.8%, 72.4%, and 66.4% of our total net sales...'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
1 floor-breaker·1 ceiling hit
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. Analyst target reached at $47.52 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: automotive OEM customers (73.8%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $44.20. Score 5.5/10, moderate confidence.
Take-profit target: $47.63 (+0.2% upside). Prior stop was $44.20. Stop-loss: $44.20.
Concentration risk — Customer: automotive OEM customers (73.8%); Analyst target reached - limited upside remaining; Near 52-week high (2.2% away).
Allegro MicroSystems, Inc. trades at a P/E of N/A (forward 50.2). TrendMatrix value score: 4.3/10. Verdict: Sell.
19 analysts cover ALGM with a consensus score of 4.2/5. Average price target: $47.
What does Allegro MicroSystems, Inc. do?Allegro MicroSystems designs and markets sensor ICs (magnetic sensors for motion, speed, position, current) and power...
Allegro MicroSystems designs and markets sensor ICs (magnetic sensors for motion, speed, position, current) and power ICs for automotive and industrial markets, shipping ~1.5 billion units annually to more than 10,000 customers worldwide. Automotive customers supplying OEMs accounted for 73.8% of FY2025 net sales, with primary internal assembly at the Philippines AMPI facility.