Astera Labs (NASDAQ:ALAB) Shares Gap Up - Time to Buy?

Key Points

• Astera Labs' stock price surged from a previous close of $200.74 to an opening price of $228.56, with recent trading at $224.62 and a trading volume of nearly 2.8 million shares.
• Equities analysts have revised their price targets for Astera Labs, with Morgan Stanley and Deutsche Bank each increasing their targets to $200, while Jefferies raised its target to $130, reflecting positive growth expectations.
• Astera Labs reported a significant year-over-year revenue increase of 149.5%, with quarterly earnings of $0.44 per share, surpassing analysts' estimates of $0.33.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $200.74, but opened at $228.56. Astera Labs shares last traded at $224.62, with a volume of 2,791,794 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Morgan Stanley upped their price objective on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 29th. Jefferies Financial Group increased their price target on Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Deutsche Bank Aktiengesellschaft increased their price target on Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, September 2nd. Northland Securities downgraded Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price target on the stock. in a research report on Tuesday, July 22nd. Finally, TD Cowen initiated coverage on Astera Labs in a research report on Wednesday, October 1st. They set a "hold" rating and a $200.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $159.83.

Astera Labs Price Performance

The stock has a 50 day moving average price of $189.83 and a 200-day moving average price of $119.85. The stock has a market capitalization of $37.53 billion, a price-to-earnings ratio of 403.95, a price-to-earnings-growth ratio of 5.09 and a beta of 1.43.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 earnings per share for the quarter, topping 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 firm's revenue for the quarter was up 149.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, research analysts forecast that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other Astera Labs news, CFO Michael Truett Tate sold 100,000 shares of Astera Labs stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $171.38, for a total value of $17,138,000.00. Following the sale, the chief financial officer owned 518,996 shares in the company, valued at $88,945,534.48. The trade was a 16.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jitendra Mohan sold 152,517 shares of the company's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $170.33, for a total value of $25,978,220.61. Following the completion of the transaction, the chief executive officer directly owned 450,001 shares in the company, valued at approximately $76,648,670.33. This trade represents a 25.31% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,492,036 shares of company stock worth $232,607,552. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

Large investors have recently modified their holdings of the business. Fred Alger Management LLC lifted its stake in shares of Astera Labs by 13.0% in the 1st 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. raised its holdings in shares of Astera Labs by 22.4% in the 2nd 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 purchased a new stake in shares of Astera Labs in the 2nd quarter valued at $242,000. Realta Investment Advisors purchased a new stake in shares of Astera Labs in the 2nd quarter valued at $214,000. Finally, Sheets Smith Wealth Management purchased a new stake in shares of Astera Labs in the 2nd quarter valued at $481,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.