Astera Labs (NASDAQ:ALAB) Shares Up 2% After Analyst Upgrade

Key Points

• Astera Labs' shares increased by 2% following an upgrade from Deutsche Bank, which raised its price target from $160 to $200 while maintaining a buy rating.
• The company reported a strong earnings performance, with $0.44 EPS for the quarter, exceeding analyst expectations and showcasing a significant year-over-year revenue increase of 149.5%.
• Insider sales have occurred, with CEO Jitendra Mohan and CFO Michael Truett Tate selling a combined total of over $43 million worth of shares recently, impacting their overall ownership percentages.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) rose 2% on Wednesday after Deutsche Bank Aktiengesellschaft raised their price target on the stock from $160.00 to $200.00. Deutsche Bank Aktiengesellschaft currently has a buy rating on the stock. Astera Labs traded as high as $179.72 and last traded at $177.79. Approximately 1,035,328 shares traded hands during trading, a decline of 79% from the average daily volume of 4,911,321 shares. The stock had previously closed at $174.24.

A number of other brokerages also recently commented on ALAB. CICC Research began coverage on shares of Astera Labs in a research report on Friday, August 29th. They issued an "outperform" rating and a $190.00 price objective on the stock. William Blair assumed coverage on Astera Labs in a research note on Thursday, May 22nd. They issued an "outperform" rating on the stock. Zacks Research raised Astera Labs to a "strong-buy" rating in a report on Tuesday, August 12th. Roth Capital set a $100.00 price objective on Astera Labs and gave the company a "buy" rating in a report on Wednesday, May 7th. Finally, Needham & Company LLC boosted their target price on Astera Labs from $100.00 to $170.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $142.00.

Insider Transactions at Astera Labs

In related news, 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 sale, the chief executive officer owned 450,001 shares in the company, valued at $76,648,670.33. This represents a 25.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Michael Truett Tate sold 100,000 shares of the stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $171.38, for a total transaction of $17,138,000.00. Following the sale, the chief financial officer owned 518,996 shares of the company's stock, valued at approximately $88,945,534.48. This represents a 16.16% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,649,489 shares of company stock worth $232,463,986. Insiders own 12.50% of the company's stock.

Institutional Trading of Astera Labs

Hedge funds have recently added to or reduced their stakes in the stock. Oliver Lagore Vanvalin Investment Group acquired a new position in shares of Astera Labs in the second quarter valued at approximately $29,000. Bernard Wealth Management Corp. acquired a new position in Astera Labs in the 2nd quarter valued at $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 worth $42,000 after acquiring an additional 461 shares during the period. Advisors Asset Management Inc. boosted its holdings in shares of Astera Labs by 68.6% in the second quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after acquiring an additional 194 shares in the last quarter. Finally, Manchester Capital Management LLC increased its stake in shares of Astera Labs by 141.5% during the second quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock worth $44,000 after acquiring an additional 283 shares during the period. 60.47% of the stock is owned by institutional investors and hedge funds.

Astera Labs Stock Up 2.0%

The stock has a market capitalization of $29.55 billion, a PE ratio of 317.48, a PEG ratio of 4.62 and a beta of 1.48. The firm's fifty day moving average is $136.10 and its 200-day moving average is $96.96.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 business posted $0.13 EPS. The company'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, analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current year.

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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