Astera Labs (NASDAQ:ALAB) Shares Gap Up - Still a Buy?

Key Points

• Astera Labs shares gapped up from a previous close of $197.78 to an opening price of $208.22, with a last traded price of $205.74 and a significant trading volume of over 1.3 million shares.
• Analysts have widely upgraded their price targets for Astera Labs, with Evercore ISI increasing their target to $215.00 and Citigroup raising theirs to $275.00, both maintaining a "buy" rating.
• The company reported a 149.5% year-over-year increase in revenue, with Q2 earnings per share (EPS) beating estimates at $0.44, compared to the consensus of $0.33.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $197.78, but opened at $208.22. Astera Labs shares last traded at $205.74, with a volume of 1,302,316 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts recently commented on ALAB shares. Evercore ISI raised their price target on shares of Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a report on Wednesday, August 6th. Needham & Company LLC increased their target price on Astera Labs from $100.00 to $170.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Stifel Nicolaus set a $145.00 target price on Astera Labs and gave the stock a "buy" rating in a research report on Monday, August 4th. Citigroup upped their target price on shares of Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a research note on Wednesday, September 17th. Finally, Barclays reissued an "overweight" rating and set a $155.00 price target (up from $75.00) on shares of Astera Labs in a report on Thursday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $152.94.

Astera Labs Stock Up 1.2%

The firm has a market capitalization of $33.26 billion, a price-to-earnings ratio of 357.58, a price-to-earnings-growth ratio of 5.02 and a beta of 1.46. The firm has a 50 day moving average of $181.88 and a two-hundred day moving average of $115.31.

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

Insider Buying and Selling

In related news, COO Sanjay Gajendra sold 280,000 shares of the business's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $170.02, for a total value of $47,605,600.00. Following the completion of the sale, the chief operating officer owned 5,525,545 shares in the company, valued at $939,453,160.90. The trade was a 4.82% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Manuel Alba sold 183,000 shares of the stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $173.27, for a total transaction of $31,708,410.00. Following the sale, the director directly owned 385,863 shares of the company's stock, valued at $66,858,482.01. The trade was a 32.17% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,576,027 shares of company stock worth $239,177,011 over the last quarter. 12.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC bought a new stake in shares of Astera Labs during the 2nd quarter valued at about $543,000. Osaic Holdings Inc. grew its stake in Astera Labs by 208.0% in the second quarter. Osaic Holdings Inc. now owns 60,787 shares of the company's stock worth $5,496,000 after purchasing an additional 41,051 shares during the period. China Universal Asset Management Co. Ltd. boosted its holdings in shares of Astera Labs by 175.7% during the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 10,200 shares of the company's stock valued at $922,000 after buying an additional 6,500 shares in the last quarter. Munro Partners purchased a new stake in shares of Astera Labs in the 2nd quarter worth about $2,355,000. Finally, Thrivent Financial for Lutherans bought a new position in shares of Astera Labs in the 2nd quarter worth about $592,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

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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