Astera Labs (NASDAQ:ALAB) Shares Up 7.8% - Should You Buy?

Key Points

• Astera Labs shares surged 7.8% during trading, with a last trading price of $209.60 after closing at $194.50.
• Research analysts have provided a consensus rating of "Moderate Buy" for Astera Labs, with price targets ranging from $125.00 to $215.00 following recent coverage updates.
• The company reported earnings of $0.44 per share, exceeding expectations and marking a 149.5% year-over-year revenue increase for the quarter.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) shot up 7.8% during trading on Thursday . The company traded as high as $211.69 and last traded at $209.60. 6,575,490 shares changed hands during trading, an increase of 28% from the average session volume of 5,123,953 shares. The stock had previously closed at $194.50.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ALAB. TD Cowen began coverage on shares of Astera Labs in a research report on Wednesday. They set a "hold" rating and a $200.00 target price on the stock. Susquehanna lifted their price target on shares of Astera Labs from $80.00 to $125.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Zacks Research upgraded shares of Astera Labs to a "strong-buy" rating in a research note on Tuesday, August 12th. Evercore ISI lifted their price target on shares of Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 6th. Finally, CICC Research assumed coverage on shares of Astera Labs in a research note on Friday, August 29th. They issued an "outperform" rating and a $190.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Astera Labs presently has a consensus rating of "Moderate Buy" and a consensus price target of $155.71.

Astera Labs Stock Up 7.8%

The firm's 50 day simple moving average is $186.50 and its two-hundred day simple moving average is $117.29. The stock has a market cap of $34.84 billion, a P/E ratio of 374.29, a price-to-earnings-growth ratio of 4.97 and a beta of 1.43.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share 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 analyst estimates of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. 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 firm earned $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, equities analysts predict that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insider Activity

In other news, CEO Jitendra Mohan sold 152,517 shares of the company's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $170.33, for a total transaction of $25,978,220.61. Following the completion of the transaction, the chief executive officer owned 450,001 shares in the company, valued at approximately $76,648,670.33. This represents a 25.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Manuel Alba sold 183,000 shares of the company's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $173.27, for a total transaction of $31,708,410.00. Following the transaction, the director owned 385,863 shares of the company's stock, valued at $66,858,482.01. This represents a 32.17% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,482,036 shares of company stock worth $230,685,952 over the last ninety days. Insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

Several institutional investors have recently bought and sold shares of ALAB. Alliancebernstein L.P. lifted its holdings in Astera Labs by 114.2% in the first quarter. Alliancebernstein L.P. now owns 8,401,019 shares of the company's stock worth $501,289,000 after purchasing an additional 4,478,741 shares during the period. Atreides Management LP lifted its holdings in Astera Labs by 153.3% in the first quarter. Atreides Management LP now owns 4,652,264 shares of the company's stock worth $277,601,000 after purchasing an additional 2,815,614 shares during the period. Vanguard Group Inc. lifted its holdings in Astera Labs by 29.6% in the 2nd quarter. Vanguard Group Inc. now owns 12,049,223 shares of the company's stock valued at $1,089,491,000 after acquiring an additional 2,751,747 shares during the last quarter. FengHe Fund Management Pte. Ltd. acquired a new stake in Astera Labs in the 2nd quarter valued at about $106,772,000. Finally, Bank of Nova Scotia lifted its holdings in Astera Labs by 3,742.2% in the 1st quarter. Bank of Nova Scotia now owns 964,400 shares of the company's stock valued at $57,546,000 after acquiring an additional 939,300 shares during the last quarter. 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.

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