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

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $71.20, but opened at $80.04. Astera Labs shares last traded at $78.03, with a volume of 1,201,479 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have recently commented on ALAB. Stifel Nicolaus lowered their price target on Astera Labs from $150.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, April 17th. Northland Securities upgraded shares of Astera Labs from a "market perform" rating to an "outperform" rating and set a $120.00 price target on the stock in a research report on Tuesday, January 28th. Northland Capmk upgraded shares of Astera Labs from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, January 28th. Roth Capital set a $100.00 target price on shares of Astera Labs and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Finally, Needham & Company LLC dropped their price objective on shares of Astera Labs from $140.00 to $100.00 and set a "buy" rating on the stock in a report on Wednesday, May 7th. Thirteen investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $99.69.

Astera Labs Trading Up 13.1%

The company has a fifty day moving average price of $64.32 and a two-hundred day moving average price of $91.73. The firm has a market capitalization of $13.28 billion, a PE ratio of -46.52, a P/E/G ratio of 6.18 and a beta of 0.33.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings results on Tuesday, May 6th. The company reported $0.33 EPS for the quarter, topping analysts' consensus estimates of $0.28 by $0.05. Astera Labs had a negative return on equity of 10.40% and a negative net margin of 21.05%. The business had revenue of $159.44 million during the quarter, compared to the consensus estimate of $151.55 million. During the same period last year, the firm earned $0.10 earnings per share. The company's revenue for the quarter was up 144.1% compared to the same quarter last year. As a group, equities research analysts predict that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Activity

In other Astera Labs news, CEO Jitendra Mohan sold 350,680 shares of the company's stock in a transaction dated Wednesday, February 19th. The shares were sold at an average price of $89.51, for a total transaction of $31,389,366.80. Following the sale, the chief executive officer now directly owns 2,353,655 shares of the company's stock, valued at approximately $210,675,659.05. This represents a 12.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Manuel Alba sold 63,000 shares of the stock in a transaction that occurred on Wednesday, April 2nd. The shares were sold at an average price of $63.37, for a total transaction of $3,992,310.00. Following the sale, the director now directly owns 444,863 shares in the company, valued at $28,190,968.31. This trade represents a 12.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 633,990 shares of company stock valued at $54,235,012.

Institutional Trading of Astera Labs

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of Astera Labs by 354.9% in the 4th quarter. Vanguard Group Inc. now owns 9,211,630 shares of the company's stock valued at $1,220,080,000 after buying an additional 7,186,582 shares in the last quarter. Alliancebernstein L.P. raised its holdings in Astera Labs by 2,328.5% during the fourth quarter. Alliancebernstein L.P. now owns 3,922,278 shares of the company's stock worth $519,506,000 after buying an additional 3,760,765 shares during the last quarter. Jennison Associates LLC purchased a new stake in Astera Labs during the fourth quarter worth about $229,991,000. Lord Abbett & CO. LLC increased its holdings in Astera Labs by 318.9% during the fourth quarter. Lord Abbett & CO. LLC now owns 1,818,600 shares of the company's stock worth $240,873,000 after buying an additional 1,384,498 shares during the last quarter. Finally, Norges Bank bought a new position in Astera Labs during the fourth quarter worth about $179,229,000. 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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