Astera Labs (NASDAQ:ALAB) Hits New 1-Year High - Still a Buy?

Key Points

• Astera Labs shares reached a new 52-week high of $239.86, with a recent trading price of $238.93 and a volume of 547,388 shares exchanged.
• Analysts are bullish on Astera Labs, with Barclays raising its price target to $155, while Jefferies and Stifel Nicolaus set targets of $130 and $145 respectively, signifying strong investor confidence in the company's growth potential.
• Astera Labs reported impressive Q2 earnings with a 149.5% increase in revenue year-over-year, and it surpassed EPS expectations with $0.44 compared to the consensus estimate of $0.33.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday . The company traded as high as $239.86 and last traded at $238.93, with a volume of 547388 shares changing hands. The stock had previously closed at $231.29.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Barclays reiterated an "overweight" rating and issued a $155.00 price objective (up previously from $75.00) on shares of Astera Labs in a research note on Thursday, August 7th. Jefferies Financial Group lifted their price objective on Astera Labs from $95.00 to $130.00 and gave the company a "buy" rating in a research note on Tuesday, July 22nd. Stifel Nicolaus set a $145.00 price objective on Astera Labs and gave the company a "buy" rating in a research note on Monday, August 4th. CICC Research assumed coverage on Astera Labs in a research note on Friday, August 29th. They issued an "outperform" rating and a $190.00 price objective for the company. Finally, Zacks Research upgraded Astera Labs to a "strong-buy" rating in a research note on Tuesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Astera Labs currently has a consensus rating of "Moderate Buy" and a consensus price target of $142.00.

Astera Labs Stock Up 2.6%

The company has a market cap of $39.44 billion, a price-to-earnings ratio of 423.85, a price-to-earnings-growth ratio of 5.82 and a beta of 1.46. The firm has a 50-day simple moving average of $157.95 and a 200 day simple moving average of $105.12.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 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 analyst estimates of $172.46 million. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The firm's revenue was up 149.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, research analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insider Buying and Selling

In other news, CFO Michael Truett Tate sold 100,000 shares of the business's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $171.38, for a total value of $17,138,000.00. Following the transaction, the chief financial officer owned 518,996 shares of the company's stock, valued at approximately $88,945,534.48. The trade was a 16.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $173.27, for a total value of $31,708,410.00. Following the completion of the transaction, the director directly owned 385,863 shares in the company, valued at approximately $66,858,482.01. The trade was a 32.17% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,725,979 shares of company stock worth $254,102,940. 12.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Oliver Lagore Vanvalin Investment Group acquired a new position in shares of Astera Labs in the second quarter valued at approximately $29,000. Bernard Wealth Management Corp. acquired a new position in shares of Astera Labs in the second quarter valued at approximately $36,000. Clearstead Trust LLC increased 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 during the period. Advisors Asset Management Inc. increased its holdings in shares of Astera Labs by 68.6% in the second quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares during the period. Finally, Manchester Capital Management LLC increased its holdings in shares of Astera Labs by 141.5% in the second quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock valued at $44,000 after purchasing an additional 283 shares during the period. Institutional investors and hedge funds own 60.47% of the company's stock.

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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