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

Key Points

• Astera Labs shares gapped down significantly from $199.53 to $183.84 before closing at $173.27, indicating a 14.2% decline.
• Analysts have mixed views on the stock, with Jefferies raising its target price to $130 and others downgrading ratings to "hold," reflecting a consensus rating of "Moderate Buy".
• Insider trading activity reports show a notable sale by Director Manuel Alba, who sold 183,000 shares for approximately $31.7 million, reflecting a 32.17% decrease in his holdings.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $199.53, but opened at $183.84. Astera Labs shares last traded at $173.27, with a volume of 3,646,441 shares trading hands.

Analysts Set New Price Targets

Several analysts have commented on the stock. Cowen assumed coverage on shares of Astera Labs in a research note on Tuesday, September 30th. They set a "hold" rating for the company. Jefferies Financial Group lifted their price objective on shares of Astera Labs from $95.00 to $130.00 and gave the company a "buy" rating in a research note on Tuesday, July 22nd. Zacks Research cut shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 6th. Wall Street Zen cut shares of Astera Labs from a "buy" rating to a "hold" rating in a research note on Friday, October 3rd. Finally, CICC Research began coverage on shares of Astera Labs in a report on Friday, August 29th. They set an "outperform" rating and a $190.00 target price for the company. Fifteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $159.83.

Astera Labs Trading Down 14.2%

The stock has a market capitalization of $28.46 billion, a PE ratio of 305.76, a price-to-earnings-growth ratio of 5.14 and a beta of 1.43. The firm's fifty day moving average price is $199.95 and its two-hundred day moving average price is $125.97.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.33 by $0.11. The company had revenue of $191.93 million during the quarter, compared to analyst estimates of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The firm's revenue was up 149.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, sell-side analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $173.27, for a total value of $31,708,410.00. Following the completion of the sale, the director owned 385,863 shares of the company's stock, valued at approximately $66,858,482.01. The trade was a 32.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Jack R. Lazar sold 22,500 shares of the business's stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $178.42, for a total transaction of $4,014,450.00. Following the completion of the sale, the director directly owned 97,351 shares of the company's stock, valued at approximately $17,369,365.42. The trade was a 18.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,308,772 shares of company stock worth $214,482,678 in the last 90 days. 12.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Astera Labs

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Oliver Lagore Vanvalin Investment Group acquired a new stake in Astera Labs during the 2nd quarter worth $29,000. Bernard Wealth Management Corp. acquired a new stake in Astera Labs during the 2nd quarter worth $36,000. Clearstead Trust LLC boosted its stake in Astera Labs by 46,100.0% during the 2nd quarter. Clearstead Trust LLC now owns 462 shares of the company's stock worth $42,000 after purchasing an additional 461 shares during the last quarter. Advisors Asset Management Inc. boosted its stake in Astera Labs by 68.6% during the 2nd quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock worth $43,000 after purchasing an additional 194 shares during the last quarter. Finally, Manchester Capital Management LLC boosted its stake in Astera Labs by 141.5% during the 2nd quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock worth $44,000 after purchasing an additional 283 shares during the last quarter. Hedge funds and other institutional investors 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.

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