Astera Labs (NASDAQ:ALAB) Shares Gap Up - Should You Buy?

Key Points

• Astera Labs shares experienced a notable increase, opening at $170.57 after closing at $161.55 and last trading at $166.73 with significant volume of 1,431,922 shares.
• Wall Street analysts show a mixed outlook for Astera Labs, with various ratings including a "hold" recommendation from Northland Capital and a "buy" from Citigroup, which raised its price target to $275.00.
• Astera Labs reported strong quarterly earnings with a 149.5% increase in revenue year-over-year, highlighting $191.93 million in revenue and earnings per share of $0.44, exceeding expectations.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $161.55, but opened at $170.57. Astera Labs shares last traded at $166.73, with a volume of 1,431,922 shares.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on ALAB shares. Northland Capmk downgraded Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 22nd. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Astera Labs in a report on Wednesday, October 8th. Cowen initiated coverage on Astera Labs in a report on Tuesday, September 30th. They issued a "hold" rating on the stock. Susquehanna upped their price objective on Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. Finally, Citigroup upped their price objective on Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. Fifteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $159.83.

Astera Labs Trading Up 0.5%

The firm has a market capitalization of $27.00 billion, a P/E ratio of 289.59, a P/E/G ratio of 4.97 and a beta of 1.43. The firm has a 50-day moving average of $200.47 and a two-hundred day moving average of $126.22.

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

Insider Buying and Selling at Astera Labs

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the 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 completion of the transaction, the director directly owned 385,863 shares in the company, valued at approximately $66,858,482.01. This trade represents a 32.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Michael Truett Tate sold 18,861 shares of the stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $183.51, for a total value of $3,461,182.11. Following the completion of the transaction, the chief financial officer owned 259,512 shares of the company's stock, valued at $47,623,047.12. This represents a 6.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,308,772 shares of company stock worth $214,482,678 over the last quarter. 12.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Astera Labs

Large investors have recently bought and sold shares of the company. Fred Alger Management LLC raised its position in Astera Labs by 13.0% in the first quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company's stock valued at $93,087,000 after purchasing an additional 179,638 shares during the last quarter. Hoey Investments Inc. increased its stake in shares of Astera Labs by 22.4% in the second quarter. Hoey Investments Inc. now owns 6,121 shares of the company's stock valued at $553,000 after buying an additional 1,121 shares during the period. Wealth Effects LLC acquired a new stake in shares of Astera Labs in the second quarter valued at about $242,000. Maryland State Retirement & Pension System increased its stake in shares of Astera Labs by 37.7% in the second quarter. Maryland State Retirement & Pension System now owns 6,960 shares of the company's stock valued at $629,000 after buying an additional 1,906 shares during the period. Finally, Realta Investment Advisors acquired a new stake in shares of Astera Labs in the second quarter valued at about $214,000. 60.47% of the stock is currently owned by institutional investors.

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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