Astera Labs (NASDAQ:ALAB) Raised to "Buy" at Wall Street Zen

Key Points

• Astera Labs has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, reflecting positive sentiment from analysts.
• The company's recent quarterly earnings surpassed expectations, reporting $0.44 EPS against a consensus estimate of $0.33, alongside a significant year-over-year revenue increase of 149.5%.
• Astera Labs has seen insider sales totaling approximately $273 million over the last three months, indicating active management movement within the company.

Astera Labs (NASDAQ:ALAB - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

Other equities research analysts have also recently issued research reports about the company. Needham & Company LLC raised their price objective on Astera Labs from $100.00 to $170.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Morgan Stanley boosted their price objective on Astera Labs from $125.00 to $155.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Northland Securities lowered Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 target price for the company. in a report on Tuesday, July 22nd. Evercore ISI boosted their price objective on Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. Finally, Jefferies Financial Group boosted their price target on shares of Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Three equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Astera Labs currently has an average rating of "Moderate Buy" and a consensus price target of $129.13.

Astera Labs Trading Down 5.2%

ALAB traded down $9.63 on Friday, hitting $176.80. 1,686,080 shares of the company were exchanged, compared to its average volume of 4,950,669. Astera Labs has a twelve month low of $36.85 and a twelve month high of $199.47. The company has a market cap of $29.39 billion, a price-to-earnings ratio of 316.43, a price-to-earnings-growth ratio of 4.71 and a beta of 1.39. The firm has a 50-day moving average price of $117.37 and a two-hundred day moving average price of $90.72.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.33 by $0.11. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%. The firm had revenue of $191.93 million during the quarter, compared to the consensus estimate of $172.46 million. During the same period in the prior year, the business earned $0.13 EPS. The firm's revenue was up 149.5% compared to the same quarter last year. Equities analysts expect that Astera Labs will post 0.34 EPS for the current year.

Insiders Place Their Bets

In other Astera Labs news, CEO Jitendra Mohan sold 152,517 shares of Astera Labs stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $170.33, for a total transaction of $25,978,220.61. Following the sale, the chief executive officer owned 450,001 shares in the company, valued at $76,648,670.33. The trade was a 25.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Sanjay Gajendra sold 280,000 shares of Astera Labs stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $170.02, for a total value of $47,605,600.00. Following the transaction, the chief operating officer directly owned 5,525,545 shares of the company's stock, valued at approximately $939,453,160.90. The trade was a 4.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,176,436 shares of company stock valued at $259,714,061 in the last 90 days. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

Several institutional investors and hedge funds have recently modified their holdings of ALAB. Oliver Lagore Vanvalin Investment Group acquired a new position in Astera Labs during the 2nd quarter worth approximately $29,000. Bernard Wealth Management Corp. acquired a new stake in shares of Astera Labs during the second quarter worth $36,000. Clearstead Trust LLC lifted its holdings in shares of Astera Labs by 46,100.0% during the second quarter. Clearstead Trust LLC now owns 462 shares of the company's stock worth $42,000 after buying an additional 461 shares in the last quarter. NewEdge Advisors LLC bought a new position in shares of Astera Labs in the fourth quarter worth $63,000. Finally, Advisors Asset Management Inc. increased its position 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 worth $43,000 after purchasing an additional 194 shares during the period. 60.47% of the stock is currently owned by institutional investors and hedge funds.

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.