Astera Labs (NASDAQ:ALAB) Sets New 52-Week High Following Earnings Beat

Key Points

• Astera Labs (NASDAQ:ALAB) achieved a new 52-week high of $166.86 after reporting earnings of $0.44 EPS, exceeding analysts' expectations of $0.33.
• The company experienced a substantial revenue growth of 149.5% year-over-year, with quarterly revenue of $191.93 million compared to a consensus estimate of $172.46 million.
• Analyst ratings vary, with an average target price of $118.80 and several firms offering mixed evaluations, including a price objective increase to $215.00 by Evercore ISI.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $164.80 and last traded at $166.86, with a volume of 365872 shares. The stock had previously closed at $135.54.

The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.33 by $0.11. Astera Labs had a return on equity of 9.95% and a net margin of 16.54%. The company had revenue of $191.93 million for the quarter, compared to analysts' expectations of $172.46 million. During the same quarter in the prior year, the business earned $0.13 earnings per share. The business's revenue for the quarter was up 149.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on ALAB. Jefferies Financial Group increased their price target on Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a report on Tuesday, July 22nd. Wall Street Zen lowered shares of Astera Labs from a "buy" rating to a "hold" rating in a report on Saturday, July 12th. Susquehanna boosted their price objective on shares of Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a research report on Thursday. William Blair began coverage on Astera Labs in a report on Thursday, May 22nd. They set an "outperform" rating for the company. Finally, Northland Securities downgraded Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective for the company. in a report on Tuesday, July 22nd. Four research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $129.13.

Insider Buying and Selling at Astera Labs

In other Astera Labs news, CFO Michael Truett Tate sold 500,000 shares of Astera Labs stock in a transaction on Friday, May 30th. The stock was sold at an average price of $90.23, for a total value of $45,115,000.00. Following the completion of the sale, the chief financial officer owned 618,996 shares of the company's stock, valued at approximately $55,852,009.08. This trade represents a 44.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jitendra Mohan sold 128,250 shares of the business's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $90.02, for a total value of $11,545,065.00. Following the completion of the transaction, the chief executive officer directly owned 541,125 shares of the company's stock, valued at approximately $48,712,072.50. This trade represents a 19.16% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,941,759 shares of company stock worth $183,714,281.

Institutional Investors Weigh In On Astera Labs

Hedge funds have recently modified their holdings of the business. Straight Path Wealth Management lifted its stake in Astera Labs by 1.5% in the 2nd quarter. Straight Path Wealth Management now owns 6,850 shares of the company's stock worth $619,000 after purchasing an additional 100 shares in the last quarter. First Horizon Advisors Inc. lifted its position in Astera Labs by 12.4% in the second quarter. First Horizon Advisors Inc. now owns 982 shares of the company's stock worth $89,000 after buying an additional 108 shares during the last quarter. Hoey Investments Inc. grew its holdings in Astera Labs by 4.2% during the 1st quarter. Hoey Investments Inc. now owns 5,000 shares of the company's stock valued at $298,000 after purchasing an additional 200 shares during the last quarter. Sound Income Strategies LLC raised its holdings in shares of Astera Labs by 34.7% in the first quarter. Sound Income Strategies LLC now owns 792 shares of the company's stock worth $47,000 after buying an additional 204 shares during the period. Finally, Wealthcare Advisory Partners LLC grew its holdings in shares of Astera Labs by 0.8% in the second quarter. Wealthcare Advisory Partners LLC now owns 29,160 shares of the company's stock worth $2,637,000 after purchasing an additional 221 shares during the last quarter. Institutional investors own 60.47% of the company's stock.

Astera Labs Stock Performance

The stock's 50 day simple moving average is $104.16 and its 200 day simple moving average is $86.99. The firm has a market capitalization of $28.18 billion, a P/E ratio of 305.16, a P/E/G ratio of 8.19 and a beta of 1.39.

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.