Allegro MicroSystems (ALGM) Stock: Buy, Sell, or Hold?
ALGM - Allegro MicroSystems, Inc. Common Stock
$36.31
1.04 (2.95%)
▲
5d:
+2.11%
30d:
-14.5%
90d:
-24.29%
HOLD
MODERATE Confidence
Analysis Updated: Sep 11, 2026 12:00 AM ET
Earnings: Oct 29, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ALGM shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: ALGM shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
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 $36.31, which is considered slightly low relative to its 30-day fair value range of $35.75 to $42.27. From a valuation perspective, the stock is trading at a discount (Forward PE: 37.6) compared to its historical average (44.3). Remarkably, the market is currently pricing in an annual earnings decline of 5.3% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, ALGM is in a downtrend. Immediate support is located at $34.02, while resistance sits at $37.67.
Market Sentiment: The stock scores a mixed 56/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $54.82 (+51.0%). 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 downtrend. Immediate support is located at $34.02, while resistance sits at $37.67.
Market Sentiment: The stock scores a mixed 56/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $54.82 (+51.0%). 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
SLIGHTLY LOW
Historical Trading Range
$35.75 -
$42.27
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
Protect Your Profits
Holding ALGM? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (56/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 51.0% below Wall St target ($54.82)
- NEUTRAL: Bottoming setup forming (56/100) — watch for confirmation
Trading Range Analysis
30-Day Trading Range
$35.75 -
$42.27
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$34.02
Resistance Level
$37.68
Current Trend
Downtrend
Technical data as of
Sep 11, 2026
Fundamental Context
Forward P/E (Next Year Est.)
37.58
Wall Street Target
$54.82
(+51.0%)
Revenue Growth (YoY)
27.5%
Earnings Growth (YoY)
-48.5%
Profit Margin
1.5%
Valuation Discount vs History
-5.3% cheaper
PE vs Historical
37.6 vs 44.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.3%
(market-implied from PE analysis)
1-Year Target
$34.39
(-5%)
2-Year Target
$32.56
(-10%)
3-Year Target
$30.84
(-15%)
3-Yr Target (if PE normalizes)
(PE: 38→44)
$36.35
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 37.6, Growth: 82.2%)
$122.55
(+238%)
Base:
(SPY PE: 20.2, Growth: 82.2%)
$65.77
(+81%)
Bear:
(PE: 17.1, Growth: 82.2%)
$55.91
(+54%)
📈
Valuation based on Current Earnings
Forward PE: 36.63 | Forward EPS (Implied): $0.99
Bull Case
$43.84
(+21%)
Analyst growth 15.0%, PE expands to 38.5
Base Case
$36.31
(0%)
Market implied 0.0%, PE stable at 36.6
Bear Case
$27.78
(-24%)
Severe decline -15.0%, PE contracts to 33.0
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 37.6 to 44.3
Stabilization Target:
$42.80
(+17.9%)
PE Expansion Potential:
+17.9%
Share & Embed Analysis
Last updated: September 13, 2026 4:25 AM ET
Data refreshes hourly during market hours. Next update: 5:25 AM
Data refreshes hourly during market hours. Next update: 5:25 AM
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Technical Signals Check
Is ALGM showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Professional options setups generated by AI based on today's ALGM price and gamma walls.
