Astera Labs (NASDAQ:ALAB) Shares Gap Down Following Insider Selling

Key Points

• Astera Labs' shares opened at $185.00 after gapping down due to insider selling, with CFO Michael Truett Tate selling 100,000 shares at an average price of $191.19.
• Analysts have varied opinions on Astera Labs, with Stifel Nicolaus setting a target price of $145.00 and Barclays raising their price objective to $155.00, while several other firms have downgraded their ratings.
• The company reported a significant earnings increase, posting $0.44 earnings per share, beating estimates by $0.11, with revenue up 149.5% year-over-year.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $190.69, but opened at $185.00. Astera Labs shares last traded at $185.04, with a volume of 972,596 shares.

Specifically, CFO Michael Truett Tate sold 100,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $191.19, for a total transaction of $19,119,000.00. Following the transaction, the chief financial officer owned 401,496 shares of the company's stock, valued at approximately $76,762,020.24. This trade represents a 19.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Stefan A. Dyckerhoff sold 1,000 shares of the firm's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $173.42, for a total transaction of $173,420.00. Following the completion of the sale, the director owned 8,936 shares of the company's stock, valued at approximately $1,549,681.12. The trade was a 10.06% decrease in their position. The disclosure for this sale can be found here. In other news, Director Stefan A. Dyckerhoff sold 25,000 shares of Astera Labs stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $173.42, for a total transaction of $4,335,500.00. Following the completion of the sale, the director directly owned 99,154 shares in the company, valued at approximately $17,195,286.68. This trade represents a 20.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analyst Ratings Changes

Several analysts have commented on ALAB shares. Stifel Nicolaus set a $145.00 target price on shares of Astera Labs and gave the stock a "buy" rating in a research note on Monday, August 4th. Wall Street Zen lowered shares of Astera Labs from a "buy" rating to a "hold" rating in a research note on Saturday, July 12th. Barclays reaffirmed an "overweight" rating and set a $155.00 price objective (up previously from $75.00) on shares of Astera Labs in a research report on Thursday, August 7th. Northland Capmk cut shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 22nd. Finally, Roth Capital set a $100.00 price objective on shares of Astera Labs and gave the company a "buy" rating in a report on Wednesday, May 7th. Four research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $129.13.

Astera Labs Stock Down 2.6%

The firm has a market cap of $30.86 billion, a PE ratio of 331.05, a P/E/G ratio of 4.91 and a beta of 1.39. The firm has a 50-day moving average price of $113.59 and a two-hundred day moving average price of $89.51.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.11. The business had revenue of $191.93 million during the quarter, compared to the consensus estimate of $172.46 million. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%. The business's quarterly revenue was up 149.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.13 EPS. Research analysts forecast that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Straight Path Wealth Management lifted its position in Astera Labs by 1.5% during the 2nd quarter. Straight Path Wealth Management now owns 6,850 shares of the company's stock worth $619,000 after acquiring an additional 100 shares during the last quarter. First Horizon Advisors Inc. lifted its holdings in Astera Labs by 12.4% in the second quarter. First Horizon Advisors Inc. now owns 982 shares of the company's stock valued at $89,000 after buying an additional 108 shares during the period. Advisors Asset Management Inc. raised its holdings in shares of Astera Labs by 68.6% during the second quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock worth $43,000 after acquiring an additional 194 shares during the period. Hoey Investments Inc. grew its position in shares of Astera Labs by 4.2% in the 1st quarter. Hoey Investments Inc. now owns 5,000 shares of the company's stock valued at $298,000 after acquiring an additional 200 shares during the period. Finally, Berbice Capital Management LLC raised its stake in Astera Labs by 14.3% in the 2nd quarter. Berbice Capital Management LLC now owns 1,600 shares of the company's stock worth $145,000 after purchasing an additional 200 shares in the last quarter. Institutional investors and hedge funds 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.

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