Allogene has beaten earnings in 3 straight quarters, but sub-floor quality driven by cash burn and no moat, value-trap margin and leverage signals, justified elevated short interest, and a rejected, implausible analyst price target all argue for treating the stock's headline upside with skepticism.
Thesis pillars
- Value Trap Margin Leverage→Stable
- Perfect Earnings Beat Streak→Stable
- Sub Floor Quality Cash Burn→Stable
- +2 more pillars — see the Why tab for full reasoning
Allogene Therapeutics, Inc. (ALLO) Stock Analysis
Breakout setup
Healthcare · Biotechnology
Sell if holding. Engine safety override at $2.12: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: High short interest: 15%; Below-average business quality.
Allogene Therapeutics is a clinical-stage immuno-oncology company developing 'off-the-shelf' allogeneic CAR T cell therapies for cancer and autoimmune disease, anchored by three core programs: cema-cel for first-line large B-cell lymphoma, ALLO-329 for autoimmune disease, and... Read more
Sell if holding. Engine safety override at $2.12: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: High short interest: 15%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Score 5.0/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 36d clear, semi cycle peak clear, materials cycle peak clear). Suitability: speculative.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHpipelinelead product candidates (cema-cel, ALLO-316, ALLO-329)10-K Item 1A: 'Our business is highly dependent on the success of our lead product candidates.'
Material Events(8-K, last 90d)
- 2026-05-28Item 5.02MEDIUMPresident and CEO David Chang will depart effective June 30, 2026, replaced by Zachary Roberts, M.D., Ph.D. (currently EVP R&D and CMO) effective July 1, 2026; Roberts also joins the Board as a Class I director. Chang is eligible for severance under the company's Change in Control and Severance Benefit Plan. No disagreement cited.SEC filing →
- 2026-05-13Item 1.02MEDIUMAllogene terminated its December 2020 Exclusive License Agreement with Overland Therapeutics covering allogeneic CAR T therapies (BCMA, CD70, FLT3, DLL3) in Greater China, Taiwan, South Korea, and Singapore, entering a new Shareholders' Agreement with Overland and HH BioPharma Holdings. Allogene had received a $40.0 million upfront payment and $79.0 million in Overland preferred stock under the terminated agreement.SEC filing →
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Rating Breakdown
3 floor-breakers
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Technicals 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. Engine safety override at $2.12: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10. Specifically: High short interest: 15%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 65, MACD bullish. Prior stop was $1.97. Score 5.0/10, moderate confidence.
Take-profit target: $2.21 (+4.2% upside). Prior stop was $1.97. Stop-loss: $1.97.
Concentration risk — Pipeline: lead product candidates (cema-cel, ALLO-316, ALLO-329); DATA_ISSUE: analyst_target_implausible (raw $8.48 vs price $2.12 — ratio 4.0×). Rejected, falling back to technical TP.; Quality below floor (1.6 < 4.0).
Allogene Therapeutics, Inc. trades at a P/E of N/A (forward -3.1). TrendMatrix value score: 5.0/10. Verdict: Sell.
19 analysts cover ALLO with a consensus score of 4.2/5. Average price target: $8.
What does Allogene Therapeutics, Inc. do?Allogene Therapeutics is a clinical-stage immuno-oncology company developing 'off-the-shelf' allogeneic CAR T cell...
Allogene Therapeutics is a clinical-stage immuno-oncology company developing 'off-the-shelf' allogeneic CAR T cell therapies for cancer and autoimmune disease, anchored by three core programs: cema-cel for first-line large B-cell lymphoma, ALLO-329 for autoimmune disease, and ALLO-316 for renal cell carcinoma. The company has no product revenue, reported a $190.9 million net loss and $2.0 billion accumulated deficit for 2025, and licenses gene-editing technology from Cellectis (TALEN) and Arbor Biotechnologies (CRISPR).