ALGM · NASDAQ · STOCK
Allegro MicroSystems (ALGM) Stock Analysis
$35.57
52W $22.41 – $71.77
57/100
$6.63B
439.1
1.99
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is ALGM Bullish or Bearish?
Bullish.
Innellis AI committee rates Allegro MicroSystems (ALGM) Buy with a composite score of 57/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +17.71 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -2.29 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — 5 consecutive earnings beats -- consistent execution. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
- News sentiment is positive (+0.33 across 12 articles, 14d) — News
Bear Case
- P/E of 466.9 is expensive by classic value standards — Value
- Price-to-book of 5.8x prices in significant intangible value — Value
- ROE of only 1.5% -- cheap may mean cheap for a reason — Value
- Bollinger bandwidth of 20.5% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
57/100
Agreement
67%
Analysts
6
Conviction
Contested
Sector Rank
Top 57%
of 287 Technology peers
Value Analyst
bearish
38
/ 100 · High confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
− P/E of 466.9 is expensive by classic value standards
Growth Analyst
bullish
77
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ 5 consecutive earnings beats -- consistent execution
Technical Analyst
bullish
61
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ MACD histogram positive -- bullish momentum
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 20.5% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
68
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.33 across 12 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 57.5 to 57.3.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
40.2
Neutral
MACD Histogram
0.232
Bullish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Lh Ll
Support
$34.21
Resistance
$35.91
Bollinger %B
0.46
Inside Bands
Price vs Moving Averages
EMA 9
$36.81
Below
EMA 21
$36.69
Below
EMA 50
$38.59
Below
EMA 200
$39.57
Below
Fundamental Analysis
Valuation
39
Growth
89
Profitability
19
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
439.1×
P/B Ratio
6.85×
PEG Ratio
0.81
Dividend Yield
0.00%
52W High
$71.77
52W Low
$22.41
Quality & Growth
ROE
-155.8%
ROA
-105.2%
Gross Margin
4719.6%
Operating Margin
621.7%
Revenue Growth YoY
—
Debt / Equity
0.30
AI Fundamental Assessment
P/E ratio of 439.1 (rich relative to a 15-40x range); Price-to-book of 6.9x; PEG ratio of 0.8 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -1.6%; Return on assets of -1.1%; Net margin of 1.5%; Gross margin of 47.2%; Current ratio of 3.70 (healthy short-term liquidity); Debt-to-equity of 0.30; Free cash flow per share is positive (0.48); Most recent quarter beat estimates by 7.4%; 5 consecutive earnings beats; EPS growth accelerating (+13.3% -> +35.3% QoQ); Average YoY EPS growth of 155.6%; Analyst estimates rising over recent quarters
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