Astera Labs (NASDAQ:ALAB) Trading 8.3% Higher Following Analyst Upgrade

Key Points

• Astera Labs' shares rose by 8.3% after Morgan Stanley upgraded its price target from $99.00 to $125.00.
• Insider trading activity showed significant sales, with the CFO selling 500,000 shares valued at approximately $45.1 million, leading to a 44.68% decrease in their ownership.
• Astera Labs reported a 144.1% year-over-year increase in quarterly revenue, posting $159.44 million compared to analysts' expectations of $151.55 million.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price was up 8.3% during trading on Wednesday after Morgan Stanley raised their price target on the stock from $99.00 to $125.00. Morgan Stanley currently has an overweight rating on the stock. Astera Labs traded as high as $129.20 and last traded at $128.23. Approximately 1,760,389 shares traded hands during trading, a decline of 63% from the average daily volume of 4,741,378 shares. The stock had previously closed at $118.41.

Other equities research analysts have also recently issued research reports about the stock. Evercore ISI lifted their price objective on shares of Astera Labs from $87.00 to $104.00 and gave the company an "outperform" rating in a research report on Wednesday, May 21st. Northland Securities cut shares of Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective on the stock. in a research note on Tuesday, July 22nd. Susquehanna started coverage on Astera Labs in a research report on Friday, May 16th. They set a "neutral" rating and a $80.00 target price on the stock. Wall Street Zen lowered Astera Labs from a "buy" rating to a "hold" rating in a report on Saturday, July 12th. Finally, Roth Capital set a $100.00 target price on Astera Labs and gave the company a "buy" rating in a research report on Wednesday, May 7th. Four equities research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $104.40.

Insider Activity

In other news, Director Bethany Mayer sold 686 shares of Astera Labs stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $87.47, for a total value of $60,004.42. Following the transaction, the director owned 6,238 shares of the company's stock, valued at $545,637.86. The trade was a 9.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Sanjay Gajendra sold 165,000 shares of the company's stock in a transaction on Wednesday, July 9th. The shares were sold at an average price of $98.61, for a total transaction of $16,270,650.00. Following the completion of the sale, the chief operating officer directly owned 695,000 shares in the company, valued at $68,533,950. This trade represents a 19.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,181,759 shares of company stock valued at $200,883,431.

Institutional Trading of Astera Labs

Several hedge funds have recently added to or reduced their stakes in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Astera Labs by 2,824.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 154,524 shares of the company's stock valued at $20,467,000 after purchasing an additional 149,240 shares during the last quarter. Pacific Point Advisors LLC raised its position in shares of Astera Labs by 75.0% during the 1st quarter. Pacific Point Advisors LLC now owns 7,000 shares of the company's stock valued at $418,000 after acquiring an additional 3,000 shares in the last quarter. Oppenheimer Asset Management Inc. increased its position in Astera Labs by 73.6% in the first quarter. Oppenheimer Asset Management Inc. now owns 15,995 shares of the company's stock worth $954,000 after buying an additional 6,783 shares during the period. Taylor Frigon Capital Management LLC acquired a new stake in Astera Labs in the first quarter worth $1,887,000. Finally, Cetera Investment Advisers acquired a new position in shares of Astera Labs during the fourth quarter valued at $460,000. Institutional investors and hedge funds own 60.47% of the company's stock.

Astera Labs Price Performance

The company has a market capitalization of $21.41 billion, a price-to-earnings ratio of 589.95, a price-to-earnings-growth ratio of 6.05 and a beta of 1.18. The business has a fifty day moving average price of $98.76 and a 200 day moving average price of $86.34.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings results on Tuesday, May 6th. The company reported $0.33 earnings per share for the quarter, topping analysts' consensus estimates of $0.28 by $0.05. Astera Labs had a return on equity of 2.57% and a net margin of 8.44%. The company had revenue of $159.44 million during the quarter, compared to the consensus estimate of $151.55 million. During the same period last year, the business earned $0.10 EPS. The business's quarterly revenue was up 144.1% on a year-over-year basis. Research analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

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.