ALGM Stock Analysis: Buy, Sell, or Hold?
ALGM - Allegro MicroSystems, Inc. Common Stock
$36.91
-1.07 (-2.82%)
▼
HOLD
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Jan 29, 2026
0d
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1 traders called ALGM this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD - EXTENDED: ALGM is 8.0% above fair value ($34.18). Fundamentals are solid but entry is stretched. Hold existing positions; wait for pullback to add new shares.
📊 HOLD - EXTENDED: ALGM is 8.0% above fair value ($34.18). Fundamentals are solid but entry is stretched. Hold existing positions; wait for pullback to add new shares.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$45.77
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$28.42
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ALGM is currently trading at $36.91, which is considered extended relative to its 30-day fair value range of $27.69 to $34.18. The stock's valuation (Forward PE: 40.4) is in line with its historical norms (43.1). Remarkably, the market is currently pricing in an annual earnings decline of 2.1% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, ALGM is in a uptrend. Immediate support is located at $31.86, while resistance sits at $39.89.
Market Sentiment: ALGM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, ALGM is in a uptrend. Immediate support is located at $31.86, while resistance sits at $39.89.
Market Sentiment: ALGM has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$27.69 -
$34.18
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
52.4%
Protect Your Profits
ALGM is technically overbought (RSI 70). Consider hedging now to protect against a potential pullback while keeping your upside.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range (+8.0% above fair value)
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($38.92)
Fair Price Analysis
30-Day Fair Range
$27.69 -
$34.18
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$31.86
Resistance Level
$39.89
Current Trend
Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
40.40
Wall Street Target
$38.92
(+2.5%)
Revenue Growth (YoY)
14.4%
Earnings Growth (YoY)
-48.5%
Profit Margin
-3.6%
Valuation Discount vs History
-2.1% cheaper
PE vs Historical
40.4 vs 43.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-2.1%
(market-implied from PE analysis)
1-Year Target
$37.18
(-2%)
2-Year Target
$36.40
(-4%)
3-Year Target
$35.64
(-6%)
3-Yr Target (if PE normalizes)
(PE: 40→43)
$38.02
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 40.4, Growth: 80.5%)
$128.18
(+238%)
Base:
(SPY PE: 22.3, Growth: 80.5%)
$70.75
(+86%)
Bear:
(PE: 19.0, Growth: 80.5%)
$60.14
(+58%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 40.4 to 43.1
Stabilization Target:
$40.52
(+6.7%)
PE Expansion Potential:
+6.7%
Last updated: January 31, 2026 1:57 PM ET
Data refreshes hourly during market hours. Next update: 2:57 PM
Data refreshes hourly during market hours. Next update: 2:57 PM
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Technical Signals Check
Is ALGM showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Roald Graham Webster
SELL
8266 shares
2025-08-22
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Advanced ALGM Option Strategies
Professional options setups generated by AI based on today's ALGM price and gamma walls.
