Astera Labs (NASDAQ:ALAB) Shares Gap Down - What's Next?

Key Points

• Astera Labs shares gapped down opening at $155.01 after closing at $159.80, with a current trading volume of over 1.1 million shares.
• Analysts' ratings vary, with Wall Street Zen upgrading to "buy" while Zacks lowered to "hold," and Morgan Stanley raised its price target from $155 to $200.
• Astera Labs reported a significant year-over-year revenue increase of 149.5%, earning $0.44 per share, exceeding analyst expectations of $0.33.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $159.80, but opened at $155.01. Astera Labs shares last traded at $155.77, with a volume of 1,114,030 shares traded.

Wall Street Analysts Forecast Growth

ALAB has been the topic of a number of recent analyst reports. Wall Street Zen upgraded Astera Labs from a "hold" rating to a "buy" rating in a report on Saturday. Zacks Research cut Astera Labs from a "strong-buy" rating to a "hold" rating in a report on Monday, October 6th. Northland Securities cut Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective on the stock. in a report on Tuesday, July 22nd. Cowen assumed coverage on Astera Labs in a research note on Tuesday, September 30th. They issued a "hold" rating on the stock. Finally, Morgan Stanley boosted their target price on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a research note on Friday, August 29th. Fourteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $162.06.

Astera Labs Stock Down 2.2%

The firm has a 50 day moving average of $199.68 and a 200 day moving average of $128.80. The firm has a market cap of $25.98 billion, a price-to-earnings ratio of 279.09, a PEG ratio of 3.98 and a beta of 1.43.

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 analysts' consensus estimates of $0.33 by $0.11. The company had revenue of $191.93 million for 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%.The company's revenue for the quarter was up 149.5% on a year-over-year basis. During the same quarter last year, the company earned $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. Equities analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insider Buying and Selling

In related news, COO Sanjay Gajendra sold 280,000 shares of the business's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $170.02, for a total transaction of $47,605,600.00. Following the completion of the transaction, the chief operating officer directly owned 5,525,545 shares in the company, valued at $939,453,160.90. The trade was a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $173.27, for a total value of $31,708,410.00. Following the transaction, 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,092,997 shares of company stock valued at $192,231,120 in the last 90 days. Corporate insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

Hedge funds and other institutional investors have recently modified their holdings of the stock. Oliver Lagore Vanvalin Investment Group bought a new stake in shares of Astera Labs in the 2nd quarter valued at about $29,000. Bernard Wealth Management Corp. bought a new stake in shares of Astera Labs in the 2nd quarter valued at about $36,000. Clearstead Trust LLC lifted its stake in shares of Astera Labs by 46,100.0% in the 2nd quarter. Clearstead Trust LLC now owns 462 shares of the company's stock valued at $42,000 after acquiring an additional 461 shares during the last quarter. Advisors Asset Management Inc. raised its position in Astera Labs by 68.6% during the 2nd quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares during the last quarter. Finally, Manchester Capital Management LLC raised its position in Astera Labs by 141.5% during the 2nd quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock valued at $44,000 after purchasing an additional 283 shares during the last quarter. Institutional investors 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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