Allegro MicroSystems, Inc.
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Range $48 – $67
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About the company
Allegro MicroSystems, Inc. focuses on the creation, production, and worldwide distribution of sophisticated integrated circuits (ICs). Their primary offerings consist of sensor ICs and custom-designed analog power ICs, developed mainly for motion control and energy-saving applications.
- CEO
- Michael C. Doogue
- IPO
- 2020
- Employees
- 4,250
- HQ
- Manchester, NH, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $6.93B
- P/E
- 459.14
- Fwd P/E
- 36.19
- PEG
- 0.85
- P/S
- 7.32
- P/B
- 7.17
- EV/EBITDA
- 67.90
- Div Yield
- 0.00%
- Gross Margin
- 47.20%
- Op Margin
- 6.22%
- Net Margin
- 1.50%
- ROE
- 1.48%
- ROIC
- 4.61%
Latest fiscal year · YoY change
- Revenue
- $890.10M+22.8%
- Gross Profit
- $412.64M+28.3%
- Op Income
- $42.69M
- Net Income
- $-14,897,000+79.6%
- EPS
- $-0.08+79.4%
- OCF Growth
- +163.4%
- FCF Growth
- +468.8%
- 52W High
- $71.77
- 52W Low
- $22.41
- 50D MA
- $49.66
- 200D MA
- $38.85
- Beta
- 1.94
- RSI (14)
- 32
- Avg Volume
- 2.80M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Allegro reported strong fiscal 2026 growth driven by auto content gains and a rapidly expanding data center business, and guided for continued double-digit growth in Q1 FY27.· May 7, 2026
- Q4 sales were $243 million and non-GAAP EPS was $0.17; FY26 sales rose 23% to $890 million and EPS more than doubled to $0.54.
- Gross margin improved to 50% in Q4 and 49.4% for FY26, despite a roughly 200 basis point gold cost headwind during the year.
- Data center was a standout, reaching 14% of Q4 sales and more than quadrupling in FY26; management expects it to stay well above 20% growth.
- Focused auto (xEV and ADAS) grew 30% in FY26, supported by share gains, higher content, and design wins in steering, braking, and powertrain applications.
- Q1 FY27 guidance calls for $245 million to $255 million of sales and non-GAAP EPS of $0.19 to $0.23, with gross margin of 50% to 51%.
Q4 sales were $243 million, up 6% sequentially and 26% year over year, and non-GAAP EPS was $0.17, nearly tripling year over year. Q4 gross margin was 50%, operating margin was 15.6%, and adjusted EBITDA was 20.4%. FY26 sales increased 23% year over year to $890 million, gross margin was 49.4%, operating margin was 14.1%, adjusted EBITDA was 19.1% of sales, and EPS was $0.54. For the balance sheet, Allegro ended Q4 with $175 million of cash, $285 million of debt, and $116 million of net debt; full-year free cash flow was a record $125 million, and the company made $60 million in voluntary debt payments. For Q1 FY27, management guided to sales of $245 million to $255 million, gross margin of 50% to 51%, operating expenses of $80 million plus or minus $2 million, interest expense of $4 million, a tax rate of approximately 9%, and non-GAAP EPS of $0.19 to $0.23.
Mike Doogue said the company exited FY26 with strong momentum, citing a fifth straight quarter of sales growth, record backlog, and more than 30% growth in design wins. He emphasized that automotive growth is being driven by content expansion and share gains, while data center is emerging as a major multi-year growth pillar as Allegro’s content scales with higher power density architectures. His tone was confident and forward-looking, repeatedly pointing to product innovation, new design wins, and a growing pipeline in both auto and industrial markets.
Derek D’Antilio highlighted the quarter’s profitability and leverage, noting 50% gross margin, 15.6% operating margin, $36 million of operating cash flow, $17 million of capex, and $19 million of free cash flow in Q4. He said FY26 gross margin improved 140 basis points to 49.4% despite a roughly 200 basis point gold headwind, and he pointed to factory efficiencies and operating leverage as key offsets. He also noted $60 million of voluntary debt paydown, $175 million of cash at quarter-end, and first-quarter guidance that implies sequentially lower opex at $80 million plus or minus $2 million, with gross margin still expected in the 50% to 51% range.
Analysts focused on the durability of data center growth, the mix between legacy fan drivers and newer current sensor and isolated gate driver products, and how much of the Q1 guide assumes a slowdown versus simply a larger base. Management said data center growth should remain well above 20% in FY27, with fan drivers still the majority of the business but current sensors ramping more in FY27 and isolated gate drivers still 18 to 24 months away from meaningful revenue. Questions also centered on gross margin expansion, foundry costs, and price increases; management said gold and freight/fuel are the main cost pressures, while select price increases are expected to begin at the end of Q1, alongside ongoing gold-to-copper conversions and factory efficiencies.
The bull case is that Allegro appears to be taking share and expanding content in its highest-value markets, especially focused auto and data center. Management sounded confident that design wins, backlog, and new product ramps can sustain growth above market levels, with data center content per rack potentially rising from about $150 to over $425 in next-generation AI configurations.
The main risks discussed were cost headwinds, especially gold and more recently freight/fuel, which pressured margins and may require selective price increases. Data center still depends heavily on fan drivers today, isolated gate drivers are not expected to be material for 18 to 24 months, and management also acknowledged thin auto inventories without broad restocking yet.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 67.1%
- Shares Outstanding
- 186.31M
- Float Shares
- 124.99M
of shares held by institutions
330 13F filers
Buy/sell ratio 3.50. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for ALGM, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| Josh GottheimerHouse · NJ05 | Buy | Oct 17, 24 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Sep 16, 24 | Filing → |
| Josh GottheimerHouse · NJ05 | Buy | Jan 11, 24 | Filing → |
| Josh GottheimerHouse · NJ05 | Sell | Dec 11, 23 | Filing → |
| Josh GottheimerHouse · NJ05 | Buy | Oct 27, 23 | Filing → |
| Thomas R. CarperSenate · DE | Sell | Apr 17, 23 | Filing → |
| Josh GottheimerHouse · NJ05 | Buy | Jan 23, 23 | Filing → |
| Susie LeeHouse · NV03 | Sell | May 26, 21 | Filing → |
| Susie LeeHouse · NV03 | Buy | Feb 5, 21 | Filing → |
| Susie LeeHouse · NV03 | Buy | Feb 12, 21 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Fmr LLC | 25.58M | ▼ 1.84M |
| Vanguard Group Inc | 14.20M | ▼ 90.94K |
| Blackrock, Inc. | 13.89M | ▲ 1.39M |
| Invesco Ltd. | 13.68M | ▲ 4.93M |
| Jpmorgan Chase & Co | 12.72M | ▲ 4.07M |
| Capital Research Global Investors | 12.01M | ▼ 429.16K |
| State Street Corp | 5.68M | ▲ 448.32K |
| Vanguard Capital Management LLC | 5.51M | ▲ 44.09K |
| Price T Rowe Associates Inc | 3.71M | ▲ 3.60M |
| Clearbridge Investments, LLC | 2.95M | ▲ 82.53K |
| Geode Capital Management, LLC | 2.64M | ▲ 188.11K |
| Dimensional Fund Advisors LP | 2.12M | ▼ 46.52K |
Held by 438 ETFs
Biggest fund positions in ALGM by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 17, 26 | Raubacher Jennie | sell | 1,000 |
| Aug 10, 26 | Hagen Erin | sell | 2,285 |
| Aug 5, 26 | Suzuki Yoshihiro | other | 4,251 |
| Aug 5, 26 | MARTIN JOSEPH R | other | 4,251 |
| Aug 5, 26 | PUMA MARY G | other | 4,251 |
| Aug 5, 26 | Palepu Krishna G. | other | 4,251 |
| Aug 5, 26 | Raubacher Jennie | other | 4,251 |
| Aug 5, 26 | Willett Robert | other | 4,251 |
| Aug 5, 26 | WHITE BRIAN C | other | 4,251 |
| Jun 17, 26 | WHITE BRIAN C | other | 594 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our ALGM coverage
Recent articles, reports, and earnings notes.
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