Astera Labs (NASDAQ:ALAB) Shares Down 6.6% - Should You Sell?

Key Points

• Astera Labs shares fell 6.6% on Monday, closing at $320.09 after trading as low as $316.00. Trading volume was slightly below average.
• Despite the drop, the company reported better-than-expected quarterly results, with EPS of $0.61 versus $0.54 expected and revenue of $308.36 million versus $292.19 million estimated. Revenue jumped 93.5% year over year.
• Analysts remain mixed but generally constructive, with 12 Buy ratings and 11 Hold ratings and an average price target of $233.75. Meanwhile, insiders have sold heavily in recent months, including a large Rule 10b5-1 sale by the COO.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) fell 6.6% on Monday . The company traded as low as $316.00 and last traded at $320.09. 5,504,045 shares traded hands during trading, a decline of 1% from the average session volume of 5,547,917 shares. The stock had previously closed at $342.85.

Analysts Set New Price Targets

A number of brokerages have weighed in on ALAB. Rothschild & Co Redburn began coverage on Astera Labs in a research note on Friday, May 1st. They set a "neutral" rating and a $153.00 price objective for the company. Royal Bank Of Canada raised their price objective on Astera Labs from $250.00 to $270.00 and gave the company an "outperform" rating in a research note on Wednesday, May 6th. Citigroup lowered Astera Labs from a "buy" rating to a "market perform" rating in a research note on Tuesday, May 26th. Evercore restated an "outperform" rating and set a $297.00 price objective on shares of Astera Labs in a research note on Tuesday, May 19th. Finally, Weiss Ratings upgraded Astera Labs from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, May 21st. Twelve research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company's stock. According to data from MarketBeat.com, Astera Labs has an average rating of "Moderate Buy" and an average price target of $233.75.

Astera Labs Trading Down 6.6%

The company has a market cap of $54.87 billion, a price-to-earnings ratio of 216.28, a price-to-earnings-growth ratio of 4.54 and a beta of 3.94. The firm has a 50-day moving average price of $190.82 and a 200 day moving average price of $165.06.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $0.61 EPS for the quarter, topping the consensus estimate of $0.54 by $0.07. The company had revenue of $308.36 million during the quarter, compared to analyst estimates of $292.19 million. Astera Labs had a return on equity of 18.49% and a net margin of 26.72%.The business's revenue was up 93.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.33 EPS. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. Research analysts anticipate that Astera Labs, Inc. will post 1.84 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Sanjay Gajendra sold 400,000 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $290.30, for a total value of $116,120,000.00. Following the sale, the chief operating officer owned 5,064,213 shares of the company's stock, valued at approximately $1,470,141,033.90. This trade represents a 7.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Philip Mazzara sold 796 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $291.03, for a total value of $231,659.88. Following the completion of the sale, the general counsel directly owned 103,343 shares in the company, valued at approximately $30,075,913.29. This trade represents a 0.76% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 2,306,257 shares of company stock valued at $473,685,936. Insiders own 10.40% of the company's stock.

Institutional Trading of Astera Labs

Hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its position in shares of Astera Labs by 167.3% during the 1st quarter. Royal Bank of Canada now owns 152,453 shares of the company's stock valued at $9,097,000 after purchasing an additional 95,409 shares during the period. AQR Capital Management LLC increased its position in shares of Astera Labs by 213.4% during the 1st quarter. AQR Capital Management LLC now owns 11,391 shares of the company's stock valued at $680,000 after purchasing an additional 7,756 shares during the period. Empowered Funds LLC increased its position in shares of Astera Labs by 917.3% during the 1st quarter. Empowered Funds LLC now owns 4,639 shares of the company's stock valued at $277,000 after purchasing an additional 4,183 shares during the period. First Trust Advisors LP increased its position in shares of Astera Labs by 102.0% during the 2nd quarter. First Trust Advisors LP now owns 112,766 shares of the company's stock valued at $10,196,000 after purchasing an additional 56,952 shares during the period. Finally, Brown Advisory Inc. increased its position in shares of Astera Labs by 54.9% during the 2nd quarter. Brown Advisory Inc. now owns 5,581 shares of the company's stock valued at $505,000 after purchasing an additional 1,977 shares during the period. Institutional investors own 60.47% of the company's stock.

Astera Labs Company Profile

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company's product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.