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

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $68.57, but opened at $64.34. Astera Labs shares last traded at $65.11, with a volume of 788,125 shares trading hands.

Analyst Upgrades and Downgrades

ALAB has been the topic of several recent analyst reports. Stifel Nicolaus upped their price objective on shares of Astera Labs from $100.00 to $150.00 and gave the stock a "buy" rating in a report on Monday, January 6th. Northland Capmk upgraded Astera Labs from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, January 28th. Craig Hallum lifted their price objective on Astera Labs from $105.00 to $125.00 and gave the company a "buy" rating in a research note on Tuesday, February 11th. Citigroup assumed coverage on Astera Labs in a report on Monday, November 18th. They issued a "buy" rating and a $120.00 price objective on the stock. Finally, Northland Securities upgraded Astera Labs from a "market perform" rating to an "outperform" rating and set a $120.00 target price for the company in a report on Tuesday, January 28th. One equities 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 MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $115.33.

Astera Labs Price Performance

The company has a market cap of $10.00 billion and a PE ratio of -35.66. The business's 50 day moving average is $104.47 and its 200-day moving average is $87.77.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly earnings data on Monday, February 10th. The company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.16). Astera Labs had a negative return on equity of 10.40% and a negative net margin of 21.05%. As a group, sell-side analysts predict that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

Insider Activity

In related news, General Counsel Philip Mazzara sold 50,000 shares of Astera Labs stock in a transaction on Thursday, February 20th. The shares were sold at an average price of $87.46, for a total transaction of $4,373,000.00. Following the sale, the general counsel now directly owns 191,209 shares in the company, valued at $16,723,139.14. This trade represents a 20.73 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Michael Truett Tate sold 125,800 shares of the company's stock in a transaction on Wednesday, February 26th. The shares were sold at an average price of $82.53, for a total transaction of $10,382,274.00. Following the completion of the transaction, the chief financial officer now owns 244,242 shares of the company's stock, valued at $20,157,292.26. This represents a 34.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 570,990 shares of company stock worth $50,242,702.

Hedge Funds Weigh In On Astera Labs

Institutional investors have recently modified their holdings of the business. Whittier Trust Co. of Nevada Inc. purchased a new position in Astera Labs during the 4th quarter worth $25,000. Hollencrest Capital Management purchased a new position in shares of Astera Labs during the third quarter worth about $26,000. Steward Partners Investment Advisory LLC increased its position in Astera Labs by 99.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 199 shares of the company's stock valued at $26,000 after acquiring an additional 99 shares during the period. Kestra Investment Management LLC purchased a new stake in Astera Labs during the 4th quarter valued at approximately $28,000. Finally, Geneos Wealth Management Inc. acquired a new stake in Astera Labs during the 4th quarter worth approximately $36,000. 60.47% of the stock is owned by institutional investors and hedge funds.

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.