Astera Labs (NASDAQ:ALAB) Cut to Hold at Wall Street Zen

Key Points

• Astera Labs has been downgraded by Wall Street Zen from a "buy" to a "hold" rating, with similar downgrades from Zacks Research.
• The company's stock has a consensus rating of "Moderate Buy" with a target price of $162.06, despite a mix of ratings from analysts.
• Astera Labs recently reported strong earnings, with a significant revenue increase of 149.5% year-over-year and an EPS of $0.44, surpassing analysts' expectations.

Astera Labs (NASDAQ:ALAB - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

ALAB has been the topic of several other research reports. Zacks Research lowered Astera Labs from a "strong-buy" rating to a "hold" rating in a report on Monday, October 6th. Needham & Company LLC raised their target price on Astera Labs from $100.00 to $170.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Susquehanna boosted their target price on Astera Labs from $80.00 to $125.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Cowen initiated coverage on shares of Astera Labs in a research note on Tuesday, September 30th. They issued a "hold" rating on the stock. Finally, Barclays reissued an "equal weight" rating and set a $155.00 price objective on shares of Astera Labs in a report on Monday, October 20th. Fourteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $162.06.

Astera Labs Stock Performance

Shares of NASDAQ ALAB opened at $164.97 on Friday. Astera Labs has a 1 year low of $47.13 and a 1 year high of $262.90. The company's fifty day moving average price is $196.79 and its 200 day moving average price is $131.95. The company has a market capitalization of $27.42 billion, a PE ratio of 294.59, a price-to-earnings-growth ratio of 4.11 and a beta of 1.43.

Astera Labs (NASDAQ:ALAB - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.11. The company had revenue of $191.93 million for the quarter, compared to analysts' expectations of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The firm's quarterly revenue was up 149.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. On average, equities analysts expect that Astera Labs will post 0.34 EPS for the current year.

Insider Activity

In other Astera Labs news, CEO Jitendra Mohan sold 91,441 shares of the company's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $183.51, for a total transaction of $16,780,337.91. Following the completion of the sale, the chief executive officer directly owned 2,170,877 shares in the company, valued at $398,377,638.27. This represents a 4.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Michael Truett Tate sold 18,861 shares of the company's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $183.51, for a total transaction of $3,461,182.11. Following the transaction, the chief financial officer owned 259,512 shares of the company's stock, valued at approximately $47,623,047.12. The trade was a 6.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,092,997 shares of company stock valued at $192,231,120. Insiders own 12.50% of the company's stock.

Institutional Trading of Astera Labs

Large investors have recently bought and sold shares of the stock. Oliver Lagore Vanvalin Investment Group acquired a new stake in Astera Labs during the 2nd quarter worth $29,000. Bernard Wealth Management Corp. acquired a new stake in shares of Astera Labs in the 2nd quarter valued at about $36,000. Clearstead Trust LLC lifted its holdings in shares of Astera Labs by 46,100.0% in the second quarter. Clearstead Trust LLC now owns 462 shares of the company's stock valued at $42,000 after purchasing an additional 461 shares in the last quarter. Advisors Asset Management Inc. boosted its position in shares of Astera Labs by 68.6% during the second quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock worth $43,000 after buying an additional 194 shares during the period. Finally, Manchester Capital Management LLC lifted its stake in Astera Labs by 141.5% in the 2nd quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock valued at $44,000 after acquiring an additional 283 shares in the last quarter. 60.47% of the stock is currently owned by institutional investors.

Astera Labs Company Profile

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.

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