Astera Labs (NASDAQ:ALAB) Shares Down 3% - Here's What Happened

Key Points

• Astera Labs' shares declined by 3% during trading on Tuesday, with trading volumes increasing by 20% compared to the average session.
• Analysts currently have a consensus rating of "Moderate Buy" for Astera Labs, with target prices ranging widely from $155.00 to $215.00.
• The company reported impressive quarterly earnings, beating estimates with $0.44 EPS and experiencing a 149.5% increase in revenue compared to the same quarter last year.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) fell 3% during trading on Tuesday . The company traded as low as $219.25 and last traded at $230.11. 6,118,650 shares traded hands during mid-day trading, an increase of 20% from the average session volume of 5,079,139 shares. The stock had previously closed at $237.30.

Wall Street Analyst Weigh In

A number of brokerages recently commented on ALAB. CICC Research began coverage on Astera Labs in a research report on Friday, August 29th. They issued an "outperform" rating and a $190.00 price objective for the company. Morgan Stanley lifted their price objective on Astera Labs from $155.00 to $200.00 and gave the stock an "overweight" rating in a research report on Friday, August 29th. Zacks Research upgraded Astera Labs to a "strong-buy" rating in a research report on Tuesday, August 12th. Barclays restated an "overweight" rating and set a $155.00 target price (up from $75.00) on shares of Astera Labs in a research report on Thursday, August 7th. Finally, Evercore ISI boosted their target price on Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, Astera Labs presently has a consensus rating of "Moderate Buy" and a consensus target price of $152.94.

Astera Labs Stock Performance

The company has a 50-day moving average of $172.89 and a 200-day moving average of $111.31. The firm has a market capitalization of $38.25 billion, a price-to-earnings ratio of 410.91, a price-to-earnings-growth ratio of 6.22 and a beta of 1.46.

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

Insiders Place Their Bets

In related news, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 385,863 shares in the company, valued at approximately $66,858,482.01. The trade was a 32.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jitendra Mohan sold 152,517 shares of the business's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $170.33, for a total value of $25,978,220.61. Following the completion of the transaction, the chief executive officer owned 450,001 shares of the company's stock, valued at $76,648,670.33. This represents a 25.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,576,027 shares of company stock valued at $239,177,011 over the last 90 days. 12.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Astera Labs

Several institutional investors have recently bought and sold shares of ALAB. Cetera Investment Advisers bought a new stake in shares of Astera Labs during the 4th quarter worth approximately $460,000. Deutsche Bank AG raised its stake in shares of Astera Labs by 33.0% during the 4th quarter. Deutsche Bank AG now owns 7,695 shares of the company's stock worth $1,019,000 after purchasing an additional 1,909 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Astera Labs by 2,824.4% during 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 worth $20,467,000 after purchasing an additional 149,240 shares in the last quarter. Public Employees Retirement System of Ohio raised its stake in shares of Astera Labs by 364.3% during the 4th quarter. Public Employees Retirement System of Ohio now owns 37,145 shares of the company's stock worth $4,920,000 after purchasing an additional 29,145 shares in the last quarter. Finally, GF Fund Management CO. LTD. bought a new stake in shares of Astera Labs during the 4th quarter worth approximately $265,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.