Astera Labs (NASDAQ:ALAB) Shares Gap Down After Analyst Downgrade

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) shares gapped down prior to trading on Wednesday after Needham & Company LLC lowered their price target on the stock from $140.00 to $100.00. The stock had previously closed at $71.36, but opened at $67.36. Needham & Company LLC currently has a buy rating on the stock. Astera Labs shares last traded at $68.74, with a volume of 2,439,316 shares trading hands.

Several other research analysts have also issued reports on ALAB. Barclays upped their target price on shares of Astera Labs from $70.00 to $75.00 and gave the stock an "overweight" rating in a research report on Wednesday. Citigroup cut their price objective on Astera Labs from $120.00 to $100.00 and set a "buy" rating for the company in a report on Monday, April 14th. Northland Securities raised Astera Labs from a "market perform" rating to an "outperform" rating and set a $120.00 price objective on the stock in a report on Tuesday, January 28th. Northland Capmk upgraded shares of Astera Labs from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, January 28th. Finally, Stifel Nicolaus lowered their price objective on shares of Astera Labs from $150.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, April 17th. One research analyst has rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $100.92.

Insider Activity

In other news, CEO Jitendra Mohan sold 350,680 shares of Astera Labs stock in a transaction dated Wednesday, February 19th. The shares were sold at an average price of $89.51, for a total transaction of $31,389,366.80. Following the sale, the chief executive officer now owns 2,353,655 shares of the company's stock, valued at approximately $210,675,659.05. The trade was a 12.97 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Michael E. Hurlston sold 2,500 shares of the stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $92.08, for a total transaction of $230,200.00. Following the completion of the transaction, the director now directly owns 91,794 shares of the company's stock, valued at approximately $8,452,391.52. The trade was a 2.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 633,990 shares of company stock valued at $54,235,012.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ALAB. Whittier Trust Co. of Nevada Inc. purchased a new position in Astera Labs in the fourth quarter worth about $25,000. Steward Partners Investment Advisory LLC raised its holdings in Astera Labs by 99.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 199 shares of the company's stock worth $26,000 after acquiring an additional 99 shares during the last quarter. Kestra Investment Management LLC bought a new position in Astera Labs in the 4th quarter valued at approximately $28,000. Geneos Wealth Management Inc. purchased a new stake in Astera Labs during the 4th quarter valued at $36,000. Finally, Global Retirement Partners LLC increased its holdings in shares of Astera Labs by 3,155.6% in the 4th quarter. Global Retirement Partners LLC now owns 293 shares of the company's stock worth $39,000 after purchasing an additional 284 shares in the last quarter. 60.47% of the stock is currently owned by institutional investors.

Astera Labs Price Performance

The stock has a market cap of $11.33 billion, a PE ratio of -39.92, a PEG ratio of 6.18 and a beta of 0.32. The company has a 50 day moving average price of $64.27 and a two-hundred day moving average price of $91.51.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its earnings results on Tuesday, May 6th. The company reported $0.33 earnings per share for the quarter, topping analysts' consensus estimates of $0.28 by $0.05. The business had revenue of $159.44 million during the quarter, compared to analyst estimates of $151.55 million. Astera Labs had a negative return on equity of 10.40% and a negative net margin of 21.05%. Astera Labs's revenue was up 144.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.10 EPS. As a group, equities analysts predict that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

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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