Astera Labs (NASDAQ:ALAB) Posts Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• Astera Labs reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.33 by $0.04, while providing updated Q3 2025 guidance of 0.380-0.390 EPS.
• Following the earnings announcement, shares of Astera Labs fell 1.7% during mid-day trading, with a notable trading volume significantly above its average.
• Multiple analysts have changed their ratings, with Stifel Nicolaus maintaining a "buy" rating and raising the target price to $145, while Needham reduced its target from $140 to $100, reflecting mixed sentiments among market experts.

Astera Labs (NASDAQ:ALAB - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.33 by ($0.04), Zacks reports. Astera Labs had a net margin of 8.44% and a return on equity of 2.57%. Astera Labs updated its Q3 2025 guidance to 0.380-0.390 EPS.

Astera Labs Trading Down 1.7%

Shares of NASDAQ ALAB traded down $2.39 during mid-day trading on Tuesday, hitting $135.54. The company had a trading volume of 6,764,598 shares, compared to its average volume of 4,848,466. The company has a market capitalization of $22.35 billion, a price-to-earnings ratio of 616.12, a P/E/G ratio of 6.15 and a beta of 1.39. Astera Labs has a 1 year low of $36.22 and a 1 year high of $147.39. The stock's 50-day moving average price is $100.36 and its 200-day moving average price is $85.78.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Stifel Nicolaus reaffirmed a "buy" rating and set a $145.00 target price (up previously from $110.00) on shares of Astera Labs in a research note on Monday. Needham & Company LLC reduced their price objective on Astera Labs from $140.00 to $100.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. Northland Securities cut Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective for the company. in a research note on Tuesday, July 22nd. Susquehanna began coverage on Astera Labs in a research note on Friday, May 16th. They issued a "neutral" rating and a $80.00 price objective for the company. Finally, Barclays raised their price objective on Astera Labs from $70.00 to $75.00 and gave the company an "overweight" rating in a research note on Wednesday, May 7th. Four analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $106.73.

Insider Activity

In related news, insider Sanjay Gajendra sold 165,000 shares of the business's stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $71.76, for a total transaction of $11,840,400.00. Following the completion of the transaction, the insider directly owned 755,000 shares in the company, valued at $54,178,800. The trade was a 17.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Michael Truett Tate sold 500,000 shares of the business's stock in a transaction dated 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 transaction, the chief financial officer owned 618,996 shares of the company's stock, valued at approximately $55,852,009.08. The trade was a 44.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 2,181,759 shares of company stock worth $200,883,431.

Institutional Investors Weigh In On Astera Labs

Several hedge funds have recently added to or reduced their stakes in ALAB. Empowered Funds LLC lifted its stake in Astera Labs by 917.3% during the first quarter. Empowered Funds LLC now owns 4,639 shares of the company's stock worth $277,000 after purchasing an additional 4,183 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Astera Labs by 213.4% in the 1st quarter. AQR Capital Management LLC now owns 11,391 shares of the company's stock valued at $680,000 after acquiring an additional 7,756 shares during the last quarter. Finally, Royal Bank of Canada lifted its stake in shares of Astera Labs by 167.3% in the 1st quarter. Royal Bank of Canada now owns 152,453 shares of the company's stock valued at $9,097,000 after acquiring an additional 95,409 shares during the last quarter. Institutional investors 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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