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

Key Points

• Astera Labs has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, joining other analysts who have similarly adjusted their ratings.
• The company reported a substantial revenue increase of 149.5% year-over-year, with earnings per share of $0.44, surpassing estimates of $0.33.
• A significant insider activity was noted as CEO Jitendra Mohan sold 91,441 shares of stock, reducing his ownership by 4.04% and indicating potential shifts in confidence.

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

Other research analysts also recently issued reports about the company. Barclays reissued an "overweight" rating and issued a $155.00 price objective (up from $75.00) on shares of Astera Labs in a research note on Thursday, August 7th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Astera Labs in a research report on Saturday, September 27th. Northland Capmk downgraded Astera Labs from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 22nd. Wall Street Zen downgraded Astera Labs from a "buy" rating to a "hold" rating in a research report on Friday, October 3rd. Finally, Jefferies Financial Group lifted their price target on Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Fifteen research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Astera Labs currently has an average rating of "Moderate Buy" and an average target price of $159.83.

Astera Labs Price Performance

Shares of Astera Labs stock opened at $212.10 on Monday. The firm has a market cap of $35.26 billion, a price-to-earnings ratio of 378.75, a P/E/G ratio of 5.50 and a beta of 1.43. Astera Labs has a 52-week low of $47.13 and a 52-week high of $262.90. The stock has a 50-day simple moving average of $193.63 and a 200-day simple moving average of $121.53.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.33 by $0.11. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The business had revenue of $191.93 million for the quarter, compared to the consensus estimate of $172.46 million. During the same period last year, the business earned $0.13 EPS. The firm's revenue was up 149.5% compared to the same quarter last year. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, equities research analysts predict that Astera Labs will post 0.34 earnings per share for the current year.

Insider Activity at Astera Labs

In other news, CEO Jitendra Mohan sold 91,441 shares of the stock in a transaction on Monday, August 18th. The stock was sold at an average price of $183.51, for a total transaction of $16,780,337.91. Following the sale, the chief executive officer owned 2,170,877 shares in the company, valued at approximately $398,377,638.27. This represents a 4.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Sanjay Gajendra sold 91,441 shares of the firm's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $183.51, for a total value of $16,780,337.91. Following the completion of the transaction, the chief operating officer owned 2,170,877 shares in the company, valued at approximately $398,377,638.27. This represents a 4.04% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,320,054 shares of company stock valued at $215,638,632. 12.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Astera Labs

Hedge funds have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC bought a new position in shares of Astera Labs during the fourth quarter worth about $475,000. Rhumbline Advisers increased its holdings in Astera Labs by 4.4% in the 1st quarter. Rhumbline Advisers now owns 104,345 shares of the company's stock worth $6,226,000 after purchasing an additional 4,396 shares in the last quarter. Farther Finance Advisors LLC increased its stake in shares of Astera Labs by 198.6% in the first quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock valued at $80,000 after buying an additional 854 shares during the period. Wealthcare Advisory Partners LLC boosted its position in shares of Astera Labs by 1.1% during the 1st quarter. Wealthcare Advisory Partners LLC now owns 28,939 shares of the company's stock valued at $1,727,000 after purchasing an additional 320 shares in the last quarter. Finally, GAMMA Investing LLC boosted its holdings in Astera Labs by 55.7% in the first quarter. GAMMA Investing LLC now owns 794 shares of the company's stock worth $47,000 after acquiring an additional 284 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.

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