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

Key Points

• Astera Labs (NASDAQ:ALAB) shares gapped down significantly, opening at $212.00 after a previous close at $230.11, with last traded shares at $203.87.
• Analyst ratings for Astera Labs are mixed, with Northland Securities downgrading the stock from "outperform" to "market perform" with a price target of $120.00, while Citigroup raised its target from $160.00 to $275.00, maintaining a "buy" rating.
• Insider selling activity has been notable, with CEO Jitendra Mohan selling over 152,000 shares and CFO Michael Truett Tate selling 100,000 shares, collectively reducing their ownership stakes significantly.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $230.11, but opened at $212.00. Astera Labs shares last traded at $203.87, with a volume of 3,796,329 shares changing hands.

Analyst Upgrades and Downgrades

ALAB has been the subject of a number of recent analyst reports. Northland Securities lowered Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price target for the company. in a research report on Tuesday, July 22nd. Wall Street Zen raised Astera Labs from a "hold" rating to a "buy" rating in a research report on Saturday, August 16th. Citigroup upped their price target on Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a research report on Wednesday, September 17th. Morgan Stanley upped their price target on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 29th. Finally, Susquehanna raised their target price on Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $152.94.

Astera Labs Stock Down 8.6%

The company has a market cap of $34.95 billion, a P/E ratio of 375.29, a price-to-earnings-growth ratio of 6.02 and a beta of 1.48. The company has a fifty day moving average of $175.65 and a 200 day moving average of $112.14.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings data 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 return on equity of 9.53% and a net margin of 16.54%.Astera Labs's revenue was up 149.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, research analysts forecast that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Jitendra Mohan sold 152,517 shares of the business's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $170.33, for a total value of $25,978,220.61. Following the transaction, the chief executive officer directly owned 450,001 shares in the company, valued at $76,648,670.33. The trade was a 25.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Michael Truett Tate sold 100,000 shares of the business's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $171.38, for a total value of $17,138,000.00. Following the completion of the transaction, the chief financial officer owned 518,996 shares in the company, valued at $88,945,534.48. The trade was a 16.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,576,027 shares of company stock valued at $239,177,011 over the last three months. Insiders own 12.50% of the company's stock.

Institutional Trading of Astera Labs

A number of large investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. lifted its stake in shares of Astera Labs by 208.0% in the 2nd quarter. Osaic Holdings Inc. now owns 60,787 shares of the company's stock valued at $5,496,000 after purchasing an additional 41,051 shares during the last quarter. China Universal Asset Management Co. Ltd. lifted its stake in shares of Astera Labs by 175.7% in the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 10,200 shares of the company's stock valued at $922,000 after purchasing an additional 6,500 shares during the last quarter. Munro Partners bought a new stake in shares of Astera Labs in the 2nd quarter valued at approximately $2,355,000. Thrivent Financial for Lutherans bought a new stake in shares of Astera Labs in the 2nd quarter valued at approximately $592,000. Finally, Marex Group plc bought a new stake in shares of Astera Labs in the 2nd quarter valued at approximately $2,197,000. 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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