Astera Labs (NASDAQ:ALAB) Shares Down 1.6% on Insider Selling

Key Points

• Astera Labs shares fell by 1.6% after significant insider selling, with Director Manuel Alba selling 183,000 shares, reducing his stake by 32.17%.
• Despite the recent stock decline, several analysts have upgraded their ratings, with Morgan Stanley raising the price target from $155 to $200, indicating continued confidence in the company's growth prospects.
• Astera Labs reported a strong earnings performance, with a Q2 EPS of $0.44, exceeding analyst expectations and reflecting a year-over-year revenue increase of 149.5%.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s share price was down 1.6% on Friday after an insider sold shares in the company. The stock traded as low as $184.39 and last traded at $185.02. Approximately 3,213,161 shares changed hands during trading, a decline of 35% from the average daily volume of 4,923,885 shares. The stock had previously closed at $187.95.

Specifically, Director Manuel Alba sold 183,000 shares of the firm's stock in a transaction 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 of the company's stock, valued at $66,858,482.01. This trade represents a 32.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Philip Mazzara sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $188.70, for a total value of $1,887,000.00. Following the transaction, the general counsel directly owned 161,573 shares of the company's stock, valued at approximately $30,488,825.10. This trade represents a 5.83% decrease in their position. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on ALAB. Morgan Stanley increased their price objective on shares of Astera Labs from $155.00 to $200.00 and gave the stock an "overweight" rating in a research report on Friday, August 29th. Jefferies Financial Group upped their price objective 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. William Blair began coverage on shares of Astera Labs in a research report on Thursday, May 22nd. They set an "outperform" rating for the company. Northland Capmk cut shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 22nd. Finally, Susquehanna raised their price objective on shares of Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. One equities 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. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $142.00.

Astera Labs Stock Down 0.3%

The stock's 50-day moving average is $139.63 and its 200 day moving average is $98.20. The stock has a market capitalization of $31.16 billion, a PE ratio of 333.63, a P/E/G ratio of 4.48 and a beta of 1.48.

Astera Labs (NASDAQ:ALAB - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.11. The business had revenue of $191.93 million during the quarter, compared to analysts' expectations of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The firm's revenue for the quarter was up 149.5% on a year-over-year basis. During the same quarter last year, the company posted $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, equities research analysts forecast that Astera Labs, Inc. will post 0.34 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ALAB. Great Valley Advisor Group Inc. increased its position in Astera Labs by 2.2% during the 2nd quarter. Great Valley Advisor Group Inc. now owns 4,119 shares of the company's stock valued at $372,000 after purchasing an additional 90 shares during the period. Straight Path Wealth Management raised its holdings in Astera Labs by 1.5% during the second quarter. Straight Path Wealth Management now owns 6,850 shares of the company's stock valued at $619,000 after acquiring an additional 100 shares during the period. First Horizon Advisors Inc. raised its position in shares of Astera Labs by 12.4% during the second quarter. First Horizon Advisors Inc. now owns 982 shares of the company's stock valued at $89,000 after buying an additional 108 shares during the last quarter. Advisors Asset Management Inc. grew its position in 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 acquiring an additional 194 shares in the last quarter. Finally, Hoey Investments Inc. increased its position in Astera Labs by 4.2% during the first quarter. Hoey Investments Inc. now owns 5,000 shares of the company's stock valued at $298,000 after acquiring an additional 200 shares during the last quarter. 60.47% of the stock is currently owned by institutional investors.

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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