Astera Labs (NASDAQ:ALAB) Shares Down 19% - What's Next?

Key Points

• Astera Labs' stock plummeted by 19% on Tuesday, closing at $161.55 after reaching a low of $160.12 amidst increased trading volume.
• Analysts have mixed views, with some downgrading the stock to a "hold," while others raised their price targets significantly; the average price target now stands at $159.83.
• Despite the recent downturn, Astera Labs reported a strong earnings performance with earnings per share of $0.44, exceeding market expectations and highlighting a 149.5% year-over-year revenue increase.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price traded down 19% on Tuesday . The company traded as low as $160.12 and last traded at $161.55. 17,365,953 shares traded hands during mid-day trading, an increase of 233% from the average session volume of 5,215,828 shares. The stock had previously closed at $199.53.

Analyst Ratings Changes

Several brokerages recently commented on ALAB. Wall Street Zen downgraded Astera Labs from a "buy" rating to a "hold" rating in a research note on Friday, October 3rd. Morgan Stanley raised their price objective on shares of Astera Labs from $155.00 to $200.00 and gave the stock an "overweight" rating in a report on Friday, August 29th. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a report on Tuesday, September 2nd. Citigroup lifted their price target on Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a research note on Wednesday, September 17th. Finally, Bank of America started coverage on Astera Labs in a research note on Friday, October 3rd. They issued a "neutral" rating and a $230.00 price target on the stock. Fifteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, Astera Labs currently has an average rating of "Moderate Buy" and a consensus price target of $159.83.

Astera Labs Trading Down 19.0%

The firm has a market cap of $26.85 billion, a price-to-earnings ratio of 288.48, a price-to-earnings-growth ratio of 5.14 and a beta of 1.43. The stock's 50 day moving average is $199.95 and its 200 day moving average is $125.97.

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. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The firm had revenue of $191.93 million for the quarter, compared to analyst estimates of $172.46 million. During the same quarter in the prior year, the business posted $0.13 EPS. The business's revenue was up 149.5% compared to the same quarter last year. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. On average, equities research analysts predict that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insider Buying and Selling at Astera Labs

In related news, General Counsel Philip Mazzara sold 10,000 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $192.16, for a total transaction of $1,921,600.00. Following the sale, the general counsel owned 151,573 shares of the company's stock, valued at $29,126,267.68. This represents a 6.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Manuel Alba sold 183,000 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $173.27, for a total value of $31,708,410.00. Following the sale, the director directly owned 385,863 shares in the company, valued at approximately $66,858,482.01. This trade represents a 32.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,308,772 shares of company stock valued at $214,482,678 over the last ninety days. 12.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Astera Labs

Large investors have recently bought and sold shares of the company. Oliver Lagore Vanvalin Investment Group acquired a new stake in shares of 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 2nd quarter worth approximately $36,000. Clearstead Trust LLC boosted its holdings in shares of Astera Labs by 46,100.0% in the 2nd quarter. Clearstead Trust LLC now owns 462 shares of the company's stock valued at $42,000 after purchasing an additional 461 shares in the last quarter. Advisors Asset Management Inc. boosted its holdings in shares of Astera Labs by 68.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares in the last quarter. Finally, Manchester Capital Management LLC boosted its holdings in shares of Astera Labs by 141.5% in the 2nd quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock valued at $44,000 after purchasing an additional 283 shares in the last quarter. 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.

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