Astera Labs (NASDAQ:ALAB) Trading Down 2.7% - Should You Sell?

Key Points

• Astera Labs' stock (NASDAQ:ALAB) dropped by 2.7% during mid-day trading, with a notable trading volume of over 22 million shares.
• Analyst ratings for Astera Labs show a consensus of 15 buy ratings, with target prices from various brokerages ranging between $145.00 and $275.00.
• Insider selling has occurred recently, with CEO Jitendra Mohan and COO Sanjay Gajendra selling a significant number of shares, decreasing their ownership by 25.31% and 4.82%, respectively.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) dropped 2.7% during trading on Friday . The company traded as low as $231.18 and last traded at $245.20. Approximately 22,420,803 shares were traded during mid-day trading, an increase of 343% from the average daily volume of 5,056,494 shares. The stock had previously closed at $251.88.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Needham & Company LLC raised their target price on Astera Labs from $100.00 to $170.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Citigroup lifted their price objective on shares of Astera Labs from $160.00 to $275.00 and gave the stock a "buy" rating in a research note on Wednesday, September 17th. Wall Street Zen upgraded shares of Astera Labs from a "hold" rating to a "buy" rating in a report on Saturday, August 16th. Barclays reaffirmed an "overweight" rating and issued a $155.00 target price (up previously from $75.00) on shares of Astera Labs in a research note on Thursday, August 7th. Finally, Evercore ISI boosted their price target on shares of Astera Labs from $104.00 to $215.00 and gave the company an "outperform" rating in a report on Wednesday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $152.94.

Astera Labs Trading Down 3.2%

The stock's 50 day moving average is $169.95 and its two-hundred day moving average is $110.12. The stock has a market capitalization of $39.44 billion, a price-to-earnings ratio of 462.64, a price-to-earnings-growth ratio of 6.22 and a beta of 1.46.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 earnings per share for the quarter, topping 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 company had revenue of $191.93 million during the quarter, compared to analysts' expectations of $172.46 million. During the same period in the prior year, the firm earned $0.13 earnings per share. Astera Labs's revenue for the quarter 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, research analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other news, COO Sanjay Gajendra sold 91,441 shares of the business's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $183.51, for a total value of $16,780,337.91. Following the sale, the chief operating officer owned 2,170,877 shares of the company's stock, valued at $398,377,638.27. The trade was a 4.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Philip Mazzara sold 10,000 shares of the firm's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $188.70, for a total transaction of $1,887,000.00. Following the completion of 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. Insiders sold 1,576,713 shares of company stock valued at $239,237,016 over the last ninety days. Insiders own 12.50% of the company's stock.

Institutional Trading of Astera Labs

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cetera Investment Advisers acquired a new position in Astera Labs during the fourth quarter valued at approximately $460,000. Deutsche Bank AG increased its holdings in Astera Labs by 33.0% during the fourth quarter. Deutsche Bank AG now owns 7,695 shares of the company's stock worth $1,019,000 after buying an additional 1,909 shares during the last quarter. Quantinno Capital Management LP bought a new stake in Astera Labs during the fourth quarter worth $548,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Astera Labs by 2,824.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 154,524 shares of the company's stock worth $20,467,000 after acquiring an additional 149,240 shares in the last quarter. Finally, Public Employees Retirement System of Ohio lifted its stake in Astera Labs by 364.3% in the fourth quarter. Public Employees Retirement System of Ohio now owns 37,145 shares of the company's stock valued at $4,920,000 after acquiring an additional 29,145 shares during the last quarter. Institutional investors and hedge funds own 60.47% of the company's stock.

Astera Labs Company Profile

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.