- ALGM posted strong double-digit growth in Q3 FY2021 revenue and EPS, but the forecast expects growth to drop into the single digits.
- Inventory building may have inflated recent demand, which could be a problem with valuations stretched after the stock has gained 85% since the IPO.
- There has been a significant amount of insider selling going on, which is not likely to entice buyers needed to help stem the stock's recent decline.
- ALGM may have a bright future ahead, but for now, it's being held back by a combination of different headwinds.
For further details see:
Allegro MicroSystems Is Facing Headwinds From Multiple Directions