ALGM Stock Analysis: Buy, Sell, or Hold?

ALGM - Allegro MicroSystems, Inc. Common Stock

SEMICONDUCTORS & RELATED DEVICES
$43.10
-1.87 (-4.16%) β–Ό
5d: -11.95%
30d: +12.77%
90d: +1.7%
WAIT
LOW Confidence
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Analysis Updated: May 15, 2026 12:00 AM ET
Earnings: Jul 30, 2026
Smart Money Accumulation

ALGM is down 12.9% this week, but smart money is accumulating calls. Top strike: $50 2026-06-18 with 599 OI. Call ratio: 88% View Scanner →

Strength: 10.0/10

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Interactive Price Chart (1 Month)

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πŸ’‘
Bottom Line:
⏸️ WAIT FOR STABILIZATION: ALGM is down 12.0% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
See Forward Earnings Fair Value & Price Prediction β†’

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$47.04
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$29.21
Trading above historical range

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 $43.10, which is considered fair relative to its 30-day fair value range of $37.66 to $47.81. From a valuation perspective, the stock is trading at a premium (Forward PE: 46.5) compared to its historical average (41.2). At these levels, the market is pricing in 4.1% annual earnings growth.

Technical Outlook: Technically, ALGM is in a uptrend. The price is currently testing key support at $42.00. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 4.2% recently.

Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $54.42 (+21.0%). Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position FAIR
Historical Trading Range $37.66 - $47.81
Company Quality Score 54/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 71.0%

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All Signals

  • NEUTRAL: Price in fair range
  • NEUTRAL: Mixed technical signals (40/100)
  • BULLISH: High volume confirmation
  • BEARISH: Downward momentum (-4.2%)
  • BULLISH: Trading 21.0% below Wall St target ($54.42)
  • BULLISH: Expecting earnings turnaround to 4.1% growth with 26.1% revenue growth
  • WARNING: Recommendation downgraded due to -12.0% 5-day decline - wait for stabilization

Trading Range Analysis

30-Day Trading Range $37.66 - $47.81
Current vs Trading Range FAIR

Support & Resistance Levels

Support Level $42.00
Resistance Level $51.40
Current Trend Uptrend
Technical data as of May 15, 2026

Fundamental Context

Forward P/E (Next Year Est.) 46.54
Wall Street Target $54.42 (+21.0%)
Revenue Growth (YoY) 26.1%
Earnings Growth (YoY) -48.5%
Profit Margin -1.7%
Valuation Premium vs History +4.1% premium
PE vs Historical 46.5 vs 41.2 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +4.1% (market-implied from PE analysis)
1-Year Target $46.81 (+4%)
2-Year Target $48.73 (+8%)
3-Year Target $50.73 (+13%)
3-Yr Target (if PE normalizes) (PE: 47β†’41) PE COMPRESSION $44.91 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 46.5, Growth: 82.2%) $151.77 (+238%)
Base: (SPY PE: 22.0, Growth: 82.2%) $71.87 (+60%)
Bear: (PE: 18.7, Growth: 82.2%) $61.09 (+36%)
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Last updated: May 15, 2026 4:06 PM ET
Data refreshes hourly during market hours. Next update: 5:06 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL

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Advanced ALGM Option Strategies

Professional options setups generated by AI based on today's ALGM price and gamma walls.

Iron Condor Bull Call Bear Put Collar

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