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

Key Points

• Astera Labs shares gapped down from $136.73 to $126.57 before the market opened, reflecting a significant trading volume of 1,638,903 shares.
• Analysts have mixed views on the stock, with Citigroup lowering its price target from $120.00 to $100.00, while Morgan Stanley raised it from $99.00 to $125.00, indicating an overall consensus rating of "Moderate Buy."
• Insiders are actively selling shares, with CEO Jitendra Mohan and CFO Michael Truett Tate each reducing their stakes significantly, raising concerns about insider sentiment.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $136.73, but opened at $126.57. Astera Labs shares last traded at $127.65, with a volume of 1,638,903 shares traded.

Analyst Ratings Changes

A number of research firms recently weighed in on ALAB. Susquehanna began coverage on shares of Astera Labs in a research note on Friday, May 16th. They set a "neutral" rating and a $80.00 target price on the stock. Wall Street Zen lowered shares of Astera Labs from a "buy" rating to a "hold" rating in a research note on Saturday, July 12th. Roth Capital set a $100.00 price target on Astera Labs and gave the company a "buy" rating in a report on Wednesday, May 7th. Barclays upped their price target on Astera Labs from $70.00 to $75.00 and gave the company an "overweight" rating in a report on Wednesday, May 7th. Finally, Citigroup lowered their price target on Astera Labs from $120.00 to $100.00 and set a "buy" rating for the company in a report on Monday, April 14th. Four investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $104.40.

Astera Labs Stock Down 4.1%

The firm has a market capitalization of $21.62 billion, a price-to-earnings ratio of 595.94, a P/E/G ratio of 6.15 and a beta of 1.38. The company has a fifty day moving average price of $99.49 and a two-hundred day moving average price of $86.04.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.05. The firm had revenue of $159.44 million during the quarter, compared to the consensus estimate of $151.55 million. Astera Labs had a return on equity of 2.57% and a net margin of 8.44%. The company's revenue for the quarter was up 144.1% on a year-over-year basis. During the same period last year, the company earned $0.10 earnings per share. On average, equities analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Bethany Mayer sold 686 shares of the firm's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $87.47, for a total value of $60,004.42. Following the completion of the sale, the director owned 6,238 shares in the company, valued at approximately $545,637.86. This trade represents a 9.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Manuel Alba sold 13,259 shares of the firm's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $111.00, for a total transaction of $1,471,749.00. Following the completion of the sale, the director owned 1,874,498 shares of the company's stock, valued at $208,069,278. This trade represents a 0.70% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,181,759 shares of company stock worth $200,883,431 over the last quarter.

Institutional Trading of Astera Labs

Several hedge funds have recently made changes to their positions in ALAB. LPL Financial LLC raised its position in Astera Labs by 94.0% in the fourth quarter. LPL Financial LLC now owns 54,402 shares of the company's stock worth $7,205,000 after acquiring an additional 26,364 shares in the last quarter. Corebridge Financial Inc. raised its position in Astera Labs by 359.9% in the fourth quarter. Corebridge Financial Inc. now owns 814 shares of the company's stock worth $108,000 after acquiring an additional 637 shares in the last quarter. Prudential Financial Inc. purchased a new position in Astera Labs in the fourth quarter worth $632,000. Pictet Asset Management Holding SA purchased a new position in Astera Labs in the fourth quarter worth $782,000. Finally, Schroder Investment Management Group purchased a new position in Astera Labs in the fourth quarter worth $437,000. 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.