Astera Labs (NASDAQ:ALAB) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Astera Labs has been upgraded to a "strong-buy" rating by Zacks Research, reflecting positive market sentiment for the company.
• Analysts have mixed price targets for Astera Labs, with estimates ranging from $100.00 to $145.00, indicating varying expectations about its future performance.
• Astera Labs reported a significant increase in quarterly revenue, rising by 149.5% year-over-year, and beat earnings estimates with $0.44 earnings per share compared to the expected $0.33.

Astera Labs (NASDAQ:ALAB - Get Free Report) was upgraded by Zacks Research to a "strong-buy" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

A number of other analysts also recently commented on the company. Susquehanna upped their target price on Astera Labs from $80.00 to $125.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Northland Securities lowered shares of 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. Citigroup lowered their price target on shares of Astera Labs from $120.00 to $100.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Roth Capital set a $100.00 target price on shares of Astera Labs and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Finally, Stifel Nicolaus set a $145.00 price target on Astera Labs and gave the company a "buy" rating in a research note on Monday, August 4th. Four research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $129.13.

Astera Labs Stock Down 1.5%

Shares of ALAB opened at $190.69 on Tuesday. The company has a 50 day moving average of $113.59 and a two-hundred day moving average of $89.51. 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 $31.70 billion, a price-to-earnings ratio of 340.52, a price-to-earnings-growth ratio of 4.91 and a beta of 1.39.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share 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 business had revenue of $191.93 million for the quarter, compared to the consensus estimate of $172.46 million. During the same quarter in the previous year, the business earned $0.13 EPS. The company's quarterly revenue was up 149.5% compared to the same quarter last year. On average, sell-side analysts expect that Astera Labs will post 0.34 EPS for the current year.

Insider Activity

In related news, CEO Jitendra Mohan sold 152,517 shares of the business's 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 completion of the transaction, the chief executive officer owned 450,001 shares in the company, valued at approximately $76,648,670.33. The trade was a 25.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Stefan A. Dyckerhoff sold 25,000 shares of the stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $173.42, for a total value of $4,335,500.00. Following the completion of the transaction, the director owned 99,154 shares in the company, valued at approximately $17,195,286.68. The trade was a 20.14% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 2,329,686 shares of company stock valued at $273,512,376. 12.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

Several hedge funds have recently made changes to their positions in ALAB. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Astera Labs by 2,824.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 154,524 shares of the company's stock valued at $20,467,000 after purchasing an additional 149,240 shares during the period. Pacific Point Advisors LLC grew its position in shares of Astera Labs by 75.0% during the first quarter. Pacific Point Advisors LLC now owns 7,000 shares of the company's stock worth $418,000 after acquiring an additional 3,000 shares during the last quarter. Aigen Investment Management LP increased its holdings in shares of Astera Labs by 50.9% in the 1st quarter. Aigen Investment Management LP now owns 17,920 shares of the company's stock valued at $1,069,000 after acquiring an additional 6,045 shares during the period. Oppenheimer Asset Management Inc. increased its holdings in shares of Astera Labs by 73.6% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 15,995 shares of the company's stock valued at $954,000 after acquiring an additional 6,783 shares during the period. Finally, Taylor Frigon Capital Management LLC purchased a new stake in Astera Labs in the 1st quarter valued at $1,887,000. Hedge funds and other 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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