Astera Labs (NASDAQ:ALAB) Stock Dropped to "Hold" by Zacks Research

Key Points

• Zacks Research downgraded Astera Labs from “strong buy” to “hold,” although the broader analyst consensus remains “moderate buy” with a $348.33 average price target.
• Astera Labs reported stronger-than-expected quarterly results, with $0.80 EPS and $392.4 million in revenue, representing 104.5% year-over-year growth.
• Insiders sold approximately $122.6 million worth of shares over the past three months, while institutional investors own 60.47% of the company.

Astera Labs (NASDAQ:ALAB - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday, Zacks reports.

ALAB has been the subject of several other research reports. UBS Group reaffirmed a "neutral" rating and issued a $425.00 target price on shares of Astera Labs in a research report on Wednesday, August 5th. Barclays upped their price target on Astera Labs from $200.00 to $325.00 and gave the company an "equal weight" rating in a research report on Monday, July 20th. Needham & Company LLC increased their price objective on Astera Labs from $260.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. TD Cowen decreased their price objective on Astera Labs from $425.00 to $375.00 and set a "hold" rating for the company in a research report on Wednesday, August 5th. Finally, Northland Securities upgraded Astera Labs from a "market perform" rating to an "outperform" rating and set a $350.00 target price on the stock in a report on Monday, August 17th. Twelve research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, Astera Labs presently has a consensus rating of "Moderate Buy" and a consensus price target of $348.33.

Astera Labs Price Performance

Shares of ALAB opened at $389.80 on Monday. The company has a 50-day moving average of $313.22 and a two-hundred day moving average of $286.60. The stock has a market cap of $67.63 billion, a price-to-earnings ratio of 192.97 and a beta of 3.68. Astera Labs has a one year low of $97.89 and a one year high of $499.48.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.11. Astera Labs had a net margin of 30.74% and a return on equity of 19.24%. The business had revenue of $392.40 million for the quarter, compared to analyst estimates of $360.85 million. During the same quarter in the previous year, the business earned $0.44 earnings per share. The firm's revenue was up 104.5% compared to the same quarter last year. Astera Labs has set its Q3 2026 guidance at 1.160-1.210 EPS. Analysts anticipate that Astera Labs will post 2.7 earnings per share for the current year.

Insiders Place Their Bets

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $280.13, for a total value of $51,263,790.00. Following the transaction, the director owned 253,863 shares in the company, valued at $71,114,642.19. The trade was a 41.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Philip Mazzara sold 6,801 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $340.50, for a total value of $2,315,740.50. Following the completion of the transaction, the general counsel directly owned 96,542 shares in the company, valued at approximately $32,872,551. The trade was a 6.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 396,059 shares of company stock valued at $122,605,660 in the last three months. Company insiders own 10.40% of the company's stock.

Hedge Funds Weigh In On Astera Labs

Hedge funds have recently added to or reduced their stakes in the company. Greenleaf Trust increased its position in Astera Labs by 1.8% during the second quarter. Greenleaf Trust now owns 2,000 shares of the company's stock worth $966,000 after acquiring an additional 36 shares during the period. Parkside Financial Bank & Trust grew its position in Astera Labs by 74.5% in the 2nd quarter. Parkside Financial Bank & Trust now owns 96 shares of the company's stock worth $46,000 after purchasing an additional 41 shares during the last quarter. Glenmede Trust Co. NA grew its position in Astera Labs by 2.7% in the 1st quarter. Glenmede Trust Co. NA now owns 1,909 shares of the company's stock worth $209,000 after purchasing an additional 51 shares during the last quarter. Keating Financial Advisory Services Inc. bought a new position in shares of Astera Labs during the 2nd quarter worth about $25,000. Finally, Integrated Wealth Concepts LLC raised its position in shares of Astera Labs by 0.7% during the second quarter. Integrated Wealth Concepts LLC now owns 7,006 shares of the company's stock valued at $3,384,000 after buying an additional 52 shares during the last quarter. Institutional investors and hedge funds own 60.47% of the company's stock.

Astera Labs Company Profile

Astera Labs, Inc is a fabless semiconductor company that develops connectivity solutions for cloud and artificial intelligence infrastructure. Its products are designed to help data centers connect and manage processors, memory, storage, and networking components in high-performance computing systems.

The company's portfolio includes Aries PCI Express and Compute Express Link (CXL) smart memory controllers, Scorpio PCIe switches, Taurus Ethernet fabric switches, and Leo CXL memory connectivity products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.