Astera Labs, Inc. (NASDAQ:ALAB) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Astera Labs has a consensus analyst rating of “Moderate Buy”, based on coverage from 23 analysts: 12 rate it a buy and 11 rate it a hold. The average 12-month price target is $233.75.
• Recent analyst actions were mixed but generally constructive, with several firms raising targets, including Needham ($260), JPMorgan ($280), and Loop Capital ($250), while Northland Securities downgraded the stock to market perform.
• The company reported a strong quarter, beating expectations with $0.61 EPS versus $0.54 expected and $308.36 million in revenue, up 93.5% year over year. However, insiders have sold a large amount of stock recently, including COO Sanjay Gajendra’s 400,000-share sale.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty-three analysts that are covering the company, MarketBeat reports. Eleven analysts have rated the stock with a hold recommendation and twelve have given a buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $233.75.

Several equities analysts have recently weighed in on the stock. Susquehanna raised their price target on shares of Astera Labs from $155.00 to $230.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Needham & Company LLC raised their price target on shares of Astera Labs from $220.00 to $260.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Northland Securities cut shares of Astera Labs from an "outperform" rating to a "market perform" rating in a research note on Tuesday. JPMorgan Chase & Co. raised their price target on shares of Astera Labs from $205.00 to $280.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Finally, Loop Capital assumed coverage on shares of Astera Labs in a research note on Thursday, March 5th. They set a "buy" rating and a $250.00 price target for the company.

Insider Transactions at Astera Labs

In related news, Director Manuel Alba sold 183,000 shares of the firm's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $107.61, for a total value of $19,692,630.00. Following the completion of the transaction, the director directly owned 319,863 shares of the company's stock, valued at approximately $34,420,457.43. This trade represents a 36.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Sanjay Gajendra sold 400,000 shares of the firm's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $290.30, for a total transaction of $116,120,000.00. Following the completion of the transaction, the chief operating officer directly owned 5,064,213 shares of the company's stock, valued at $1,470,141,033.90. This represents a 7.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 2,316,257 shares of company stock valued at $474,860,636 in the last ninety days. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

Hedge funds and other institutional investors have recently made changes to their positions in the company. Assetmark Inc. lifted its holdings in Astera Labs by 374.1% during the 3rd quarter. Assetmark Inc. now owns 128 shares of the company's stock valued at $25,000 after purchasing an additional 101 shares during the last quarter. Reflection Asset Management acquired a new stake in Astera Labs during the 4th quarter valued at $25,000. Smartleaf Asset Management LLC lifted its holdings in Astera Labs by 422.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 188 shares of the company's stock valued at $32,000 after purchasing an additional 152 shares during the last quarter. Hilltop National Bank lifted its holdings in Astera Labs by 100.0% during the 4th quarter. Hilltop National Bank now owns 200 shares of the company's stock valued at $33,000 after purchasing an additional 100 shares during the last quarter. Finally, Aventura Private Wealth LLC acquired a new stake in Astera Labs during the 4th quarter valued at $33,000. 60.47% of the stock is owned by institutional investors.

Astera Labs Stock Performance

NASDAQ ALAB opened at $343.05 on Friday. The business has a 50 day simple moving average of $190.82 and a 200 day simple moving average of $165.12. Astera Labs has a 52-week low of $84.78 and a 52-week high of $354.53. The stock has a market cap of $58.80 billion, a price-to-earnings ratio of 231.79, a PEG ratio of 4.62 and a beta of 3.35.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.54 by $0.07. The business had revenue of $308.36 million during the quarter, compared to analysts' expectations of $292.19 million. Astera Labs had a return on equity of 18.49% and a net margin of 26.72%.Astera Labs's revenue for the quarter was up 93.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.33 EPS. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. On average, analysts predict that Astera Labs will post 1.84 EPS for the current year.

Astera Labs Company Profile

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company's product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.

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.