Allegro MicroSystems, Inc.
- Open
- 44.60
- Day high
- 48.07
- Day low
- 44.13
- Prev close
- 47.12
- Volume
- 1.6M
- Mkt cap
- $8.6B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 9.0
- P/S
- 9.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$3.4M over the last 3 months (0 open-market buys, 7 sales)
- 🏛Institutions mixed (13F)
Allegro MicroSystems, Inc. (ALGM) is a Technology company listed on NASDAQ. The stock is up 27% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 7 sales (SEC Form 4).
Allegro MicroSystems, Inc. (ALGM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ALGM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.16 | $0.17 | +4.2% | $243M | +3.1% |
| Jan 29, 2026 | $0.14 | $0.15 | +7.1% | $229M | -2.9% |
| Oct 30, 2025 | $0.12 | $0.13 | +8.3% | $214M | -0.8% |
| Jul 31, 2025 | $0.09 | $0.09 | +0.0% | $203M | -2.8% |
| May 8, 2025 | $0.05 | $0.06 | +20.0% | $193M | -0.4% |
| Jan 30, 2025 | $0.06 | $0.07 | +16.7% | $178M | -4.0% |
| Oct 31, 2024 | $0.06 | $0.08 | +33.3% | $187M | -0.1% |
| Aug 1, 2024 | $0.02 | $0.03 | +47.9% | $167M | +0.9% |
| May 9, 2024 | $0.21 | $0.25 | +19.0% | $241M | +2.4% |
| Feb 1, 2024 | $0.29 | $0.32 | +10.3% | $255M | -0.0% |
| Nov 2, 2023 | $0.37 | $0.40 | +8.1% | $276M | +0.2% |
| Aug 1, 2023 | $0.37 | $0.39 | +5.4% | $278M | +1.2% |
ALGM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 18, 2026 | WHITE BRIAN Cdirector | Grant | 594 | — |
| Jun 4, 2026 | Madormo Richardofficer: SVP, Worldwide Sales | Sell | 5,000 | $52.72 |
| May 26, 2026 | Coleman Troyofficer: SVP, General Manager, Products | Sell | 4,500 | $45.72 |
| May 22, 2026 | Webster Roald Grahamofficer: VP, Chief Accounting Officer | Sell | 5,217 | $44.88 |
| May 19, 2026 | Coleman Troyofficer: SVP, General Manager, Products | Tax | 9,670 | $43.10 |
| May 19, 2026 | Briansky Sharonofficer: SVP, GC and Secretary | Tax | 13,942 | $43.10 |
| May 19, 2026 | Doogue Michaeldirector, officer: President and CEO | Tax | 60,508 | $43.10 |
| May 19, 2026 | Webster Roald Grahamofficer: VP, Chief Accounting Officer | Tax | 4,277 | $43.10 |
| May 19, 2026 | Madormo Richardofficer: SVP, Worldwide Sales | Tax | 5,439 | $43.10 |
| May 19, 2026 | D'Antilio Derekofficer: EVP, CFO & Treasurer | Tax | 37,840 | $43.10 |
| May 19, 2026 | Kent Ianofficer: SVP, Global Operations | Sell | 2,642 | $41.56 |
| May 19, 2026 | Kent Ianofficer: SVP, Global Operations | Tax | 2,345 | $43.10 |
| May 19, 2026 | Hagen Erinofficer: SVP, CHRO | Tax | 5,815 | $43.10 |
| May 15, 2026 | Briansky Sharonofficer: SVP, GC and Secretary | Grant | 2,611 | — |
| May 15, 2026 | D'Antilio Derekofficer: EVP, CFO & Treasurer | Grant | 29,439 | — |
Source: ALGM SEC Form 4 filings, latest Jun 18, 2026. For informational purposes only — not investment advice.
See the full ALGM insider & 13F page →Allegro MicroSystems, Inc. company profile
Overview
Allegro MicroSystems, Inc. (NASDAQ:ALGM) is a semiconductor company founded in 1990 and headquartered in Manchester, New Hampshire. The company went public on October 29, 2020, and operates as a subsidiary of Japan's Sanken Electric Co., Ltd., though Sanken's ownership was reduced from 51% to 33% through a share repurchase in 2024. Allegro specializes in designing and manufacturing sensor integrated circuits and power management solutions primarily for automotive electrification and industrial automation applications. The company has established itself as a leader in magnetic sensing technology and serves customers globally through direct sales, distributors, and independent representatives.
Business
Allegro MicroSystems operates in the semiconductor industry, specifically focusing on sensor integrated circuits (ICs) and analog power ICs for motion control and energy-efficient systems. The company's products enable critical functions in modern vehicles and industrial equipment by detecting position, speed, and current while managing electrical power efficiently. The company's core offerings fall into three main categories. Magnetic sensor ICs represent the largest segment at approximately 61-69% of total sales, including position sensors that detect the location of moving parts, speed sensors that measure rotational velocity, and current sensors that monitor electrical flow. These sensors use magnetic field detection technology to provide precise measurements without physical contact, making them ideal for harsh automotive and industrial environments. Power ICs comprise the second major segment, including motor driver ICs that control electric motors, voltage regulators that manage power supply, and LED driver ICs for lighting applications. These products are essential for electric vehicle powertrains, industrial automation systems, and energy management applications. The third category includes photonic and 3D sensing components for emerging applications like LiDAR (Light Detection and Ranging) systems used in autonomous vehicles. This segment includes photodiodes that detect light signals, eye-safe lasers for distance measurement, and specialized readout ICs that process optical data. Allegro serves two primary markets: automotive applications account for approximately 73-79% of sales, while industrial and other applications represent 21-27% of revenue. The automotive segment is heavily focused on electric vehicle (e-mobility) applications, which represent about 48-50% of automotive sales and include battery management systems, motor control, and charging infrastructure.
Revenue model
Allegro generates revenue primarily through product sales of semiconductor chips to original equipment manufacturers (OEMs) and their suppliers. The company sells directly to large automotive manufacturers and industrial equipment makers, while also utilizing a distribution network for smaller customers and standard products. Approximately 49% of sales flow through distribution channels. The business model benefits from several factors that can expand margins. Design wins in automotive applications typically lead to multi-year production contracts with predictable revenue streams, as automotive qualification cycles create high switching costs for customers. The company's focus on high-value applications like electric vehicles and autonomous driving features commands premium pricing compared to commodity semiconductors. Geographic expansion, particularly the "China for China" supply chain initiative, helps reduce manufacturing costs while serving the world's largest automotive market. However, several factors can pressure margins. The semiconductor industry faces cyclical demand patterns, and automotive production volatility directly impacts sales volumes. Customer inventory adjustments can cause significant quarterly revenue swings, as evidenced by the 31% revenue decline in fiscal 2025 due to channel inventory rebalancing. Competitive pricing pressure, particularly from local Chinese competitors, requires ongoing cost reduction efforts. The company also faces exposure to commodity costs for materials like gold and copper used in chip packaging, though initiatives to convert from gold to copper wire bonding help mitigate this risk. The lengthy automotive design cycle means new product investments may take 2-3 years to reach production and 4-5 years to achieve peak revenue, requiring sustained R&D spending before returns materialize. Industrial applications offer faster time-to-market at approximately 12 months but typically involve smaller volumes than automotive programs.
Competitive moat
Allegro's competitive moat centers on its specialized magnetic sensing expertise and automotive qualification barriers. The company has developed proprietary magnetic sensing technologies, including traditional Hall-effect sensors and advanced Tunneling Magnetoresistance (TMR) sensors acquired through the Crocus acquisition. This technical expertise, combined with over 30 years of experience, creates a significant knowledge barrier for new entrants. The automotive industry's stringent qualification requirements provide substantial protection. Once Allegro's sensors are designed into a vehicle platform, the high cost and lengthy process of re-qualification creates strong customer stickiness. Automotive applications demand chips that can operate reliably for 15+ years in extreme temperature, vibration, and electromagnetic interference conditions - requirements that favor established players with proven track records. However, the moat faces several challenges. The magnetic sensing market attracts competition from larger semiconductor companies like Infineon, STMicroelectronics, and Texas Instruments, which have greater resources for R&D and customer support. Chinese competitors are increasingly targeting the domestic market with lower-cost alternatives, though they currently struggle to match Allegro's automotive-grade quality and reliability standards. The company's dependence on the automotive industry, while providing stability, also creates vulnerability to industry cycles and the potential for customers to develop in-house capabilities or switch to alternative sensing technologies. The emergence of new sensing modalities like optical or capacitive sensors could potentially disrupt magnetic sensing in certain applications, though magnetic sensors' robustness and cost-effectiveness maintain advantages in harsh environments. Overall, Allegro maintains a moderate but meaningful moat based on technical expertise and customer relationships, though ongoing investment in innovation and operational efficiency remains essential to defend market position.
Risks & safety
Allegro demonstrates a moderate margin of safety with mixed financial health indicators. • **Liquidity position**: Strong with $121 million cash, current ratio of 4.3x, and quick ratio of 2.7x providing substantial short-term financial flexibility • **Debt burden**: Manageable debt-to-equity ratio of 0.37x, though the company carries term loan obligations • **Profitability concerns**: Negative EBITDA of -$20 million in fiscal 2025 and net loss of -$73 million indicate operational challenges • **Cash generation**: Positive operating cash flow of $62 million and free cash flow of $22 million in fiscal 2025 demonstrate underlying cash generation capability despite accounting losses • **Valuation metrics**: Trading at 5.0x book value with negative earnings multiples due to losses, suggesting either distressed valuation or fundamental challenges • **Cyclical considerations**: Currently experiencing inventory-driven downturn with expectations for recovery as automotive production normalizes and electric vehicle adoption accelerates
Recent development
Over the past few years, Allegro has executed several strategic initiatives to strengthen its market position and expand into growth markets. The company completed the acquisition of Crocus Technology, significantly enhancing its magnetic sensing capabilities with advanced TMR (Tunneling Magnetoresistance) technology that offers superior performance compared to traditional Hall-effect sensors. A major corporate development was the share repurchase from parent company Sanken Electric, reducing Sanken's ownership from 51% to 33% and improving corporate governance while maintaining strategic partnership benefits. This transaction enhanced Allegro's independence and financial flexibility. The company has aggressively expanded its product portfolio, launching over 30 new products annually and doubling new product introductions compared to the IPO year. Key innovations include high-voltage isolated gate drivers for silicon carbide and gallium nitride power semiconductors, next-generation TMR current sensors, and 48-volt power management solutions for automotive applications. Operationally, Allegro initiated a "China for China" supply chain strategy to localize manufacturing and reduce costs while better serving the world's largest automotive market. The company also implemented a restructuring program targeting $15 million in annual cost savings and introduced cost innovations like converting from gold to copper wire bonding. Under new CEO Mike Duke's leadership, the company has refocused on accelerating innovation, expanding magnetic sensing market leadership, and driving operational efficiencies. Strategic priorities now emphasize capturing growth in e-mobility, data centers, robotics, and medical applications while maintaining the core automotive franchise.
ALGM company profile · for informational purposes only — not investment advice.
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