Astera Labs, Inc. (NASDAQ:ALAB) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Astera Labs, Inc. has received a consensus rating of "Moderate Buy" from 17 analysts, with an average 12-month price target of $104.40.
• Recent insider trading saw COO Sanjay Gajendra sell 165,000 shares and CEO Jitendra Mohan sell 76,258 shares, indicating a decrease in their respective ownership positions.
• The company reported a 144.1% year-over-year increase in revenue for the last quarter, with earnings of $0.33 per share, surpassing analyst expectations of $0.28.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) have been assigned an average rating of "Moderate Buy" from the seventeen ratings firms that are currently covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation and fourteen have given a buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $106.7333.

A number of research firms recently commented on ALAB. Roth Capital set a $100.00 price objective on shares of Astera Labs and gave the stock a "buy" rating in a report on Wednesday, May 7th. Barclays boosted their price objective on shares of Astera Labs from $70.00 to $75.00 and gave the stock an "overweight" rating in a report on Wednesday, May 7th. William Blair initiated coverage on shares of Astera Labs in a report on Thursday, May 22nd. They issued an "outperform" rating on the stock. Needham & Company LLC reduced their price target on shares of Astera Labs from $140.00 to $100.00 and set a "buy" rating on the stock in a report on Wednesday, May 7th. Finally, Northland Securities downgraded shares of Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price target on the stock. in a report on Tuesday, July 22nd.

Astera Labs Trading Up 5.2%

Shares of Astera Labs stock traded up $6.83 on Friday, reaching $137.93. 5,924,361 shares of the stock were exchanged, compared to its average volume of 4,835,478. Astera Labs has a 1-year low of $36.22 and a 1-year high of $147.39. The business has a fifty day moving average price of $99.49 and a two-hundred day moving average price of $85.75. The firm has a market capitalization of $22.75 billion, a PE ratio of 626.98, a PEG ratio of 6.15 and a beta of 1.39.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The company reported $0.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.28 by $0.05. Astera Labs had a net margin of 8.44% and a return on equity of 2.57%. The business had revenue of $159.44 million for the quarter, compared to analyst estimates of $151.55 million. During the same period in the previous year, the business posted $0.10 earnings per share. The business's revenue was up 144.1% compared to the same quarter last year. Research analysts expect that Astera Labs will post 0.34 EPS for the current year.

Insider Transactions at Astera Labs

In related news, insider Sanjay Gajendra sold 165,000 shares of Astera Labs stock in a transaction dated Thursday, May 8th. The shares were sold at an average price of $71.76, for a total value of $11,840,400.00. Following the sale, the insider directly owned 755,000 shares in the company, valued at $54,178,800. This trade represents a 17.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Jitendra Mohan sold 128,250 shares of Astera Labs stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $90.02, for a total transaction of $11,545,065.00. Following the completion of the sale, the chief executive officer owned 541,125 shares in the company, valued at approximately $48,712,072.50. This represents a 19.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 2,181,759 shares of company stock worth $200,883,431.

Hedge Funds Weigh In On Astera Labs

Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in Astera Labs by 0.9% during the 1st quarter. Vanguard Group Inc. now owns 9,297,476 shares of the company's stock valued at $554,780,000 after buying an additional 85,846 shares during the period. Alliancebernstein L.P. increased its position in shares of Astera Labs by 114.2% in the first quarter. Alliancebernstein L.P. now owns 8,401,019 shares of the company's stock worth $501,289,000 after acquiring an additional 4,478,741 shares in the last quarter. Atreides Management LP increased its position in shares of Astera Labs by 153.3% in the first quarter. Atreides Management LP now owns 4,652,264 shares of the company's stock worth $277,601,000 after acquiring an additional 2,815,614 shares in the last quarter. Lord Abbett & CO. LLC increased its position in shares of Astera Labs by 318.9% in the fourth quarter. Lord Abbett & CO. LLC now owns 1,818,600 shares of the company's stock worth $240,873,000 after acquiring an additional 1,384,498 shares in the last quarter. Finally, Fred Alger Management LLC increased its position in shares of Astera Labs by 13.0% in the first quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company's stock worth $93,087,000 after acquiring an additional 179,638 shares in the last quarter. Institutional investors and hedge funds own 60.47% of the company's stock.

About Astera Labs

Astera Labs, Inc designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale.