Allegro MicroSystems, Inc. (ALGM)

In the past six months, ALGM's stock has trended upwards by 1.57%, and over the past year, it has increased by 19.70%. Between November 18, 2024, and November 17, 2025, the share price saw an increase of 22.66%. Key events impacting the stock price include Allegro MicroSystems exceeding expectations for Q2 2026, reporting an EPS of $0.13 and revenue of $214.29 million, leading to a 9.92% increase in the stock during pre-market trading. The company also provided Q3 2026 sales guidance of $215 million to $225 million, which was described as above seasonal. The release of the industry's first 10 MHz TMR current sensor was highlighted as a disruptive IC. Despite positive earnings and analyst optimism, the stock has experienced downward pressure due to broader market concerns about sector valuation, sustained profitability challenges, persistent financial losses, and a premium valuation.

The semiconductor industry is cyclical, and Allegro MicroSystems is not immune to these fluctuations. The company experienced weak demand over the last two years, with sales declining, but a rebound is anticipated, driven by renewed momentum in its core automotive and industrial markets. The company's Q3 2026 sales guidance was noted as "above seasonal for the December quarter," suggesting seasonal patterns in demand. Growth in electric vehicles, clean energy, and data center infrastructure are expected to be key drivers for future demand.

Allegro MicroSystems, Inc. is a global leader in high-performance power and sensing ICs, operating within the Technology sector and Semiconductors industry. The company's products are crucial for motion control and energy-efficient systems, serving major automotive, industrial, and consumer markets worldwide. Its major products include magnetic sensor ICs for precise measurement in applications like ABS, motor control, EVs, renewable energy, and industrial automation, where Allegro is a market leader. Power ICs, including motor drivers, regulators, power management ICs, LED drivers, and isolated gate drivers, enhance energy efficiency and system performance in applications such as electric power steering, ADAS, data centers, and clean energy.

Allegro MicroSystems has a broad global presence, selling its products to original equipment manufacturers and distributors across various regions, including the United States, the rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company is headquartered in Manchester, New Hampshire, USA, and has a sole back-end manufacturing facility in the Philippines. Greater China is a significant contributor to the company's revenue.

Allegro MicroSystems has maintained a positive brand reputation over the past year, marked by recognition for its leadership and commitment to innovation and sustainability. Allegro MicroSystems was named to Inc.'s first annual Best-Led Companies list, acknowledging its excellence in management among mid-sized U.S. firms. The company emphasizes its commitment to "Innovate with Purpose," focusing on developing intelligent solutions for a safer, more sustainable, and autonomous future. Allegro has established ambitious fiscal year 2030 (FY30) ESG goals, including emissions reduction, increased renewable energy usage, waste minimization, and fostering a diverse workforce.

Allegro MicroSystems, Inc. has a diverse ownership structure. Institutional investors hold a significant portion, ranging from approximately 56.45% to 73.39% of the stock, with major holders including Fmr Llc, Capital Research Global Investors, Vanguard Group Inc, BlackRock, Inc., Jpmorgan Chase & Co, Invesco Ltd., and State Street Corp. Individual insider ownership is relatively small, accounting for about 0.40% to 0.85% of the stock. Sanken Electric Co Ltd stands out as the largest individual shareholder, owning 32.27% of the company's shares.