Astera Labs (NASDAQ:ALAB) Stock Price Down 1.7% - What's Next?

Key Points

• Astera Labs' stock (NASDAQ: ALAB) fell 1.7% to $154.85 during trading, with analysts maintaining a Moderate Buy consensus rating and a price target averaging $162.06.
• Analysts have raised their price objectives significantly, with Deutsche Bank targeting $200.00, Citigroup at $275.00, and Evercore ISI suggesting $215.00 for the stock.
• Astera Labs reported a 149.5% increase in year-over-year revenue, posting $191.93 million with earnings per share of $0.44, outperforming analyst expectations.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) dropped 1.7% during mid-day trading on Wednesday . The company traded as low as $148.51 and last traded at $154.85. Approximately 5,265,340 shares changed hands during trading, an increase of 1% from the average daily volume of 5,236,648 shares. The stock had previously closed at $157.51.

Wall Street Analysts Forecast Growth

ALAB has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a report on Tuesday, September 2nd. Evercore ISI raised their price objective 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. Citigroup raised their price objective on shares of Astera Labs from $160.00 to $275.00 and gave the stock a "buy" rating in a report on Wednesday, September 17th. Susquehanna raised their price objective on shares of Astera Labs from $80.00 to $125.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. Finally, CICC Research initiated coverage on shares of Astera Labs in a report on Friday, August 29th. They set an "outperform" rating and a $190.00 price objective for the company. Fourteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $162.06.

Astera Labs Price Performance

The stock has a market cap of $25.74 billion, a PE ratio of 276.52, a P/E/G ratio of 3.89 and a beta of 1.43. The firm's 50 day moving average price is $198.53 and its two-hundred day moving average price is $129.72.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.11. The firm had revenue of $191.93 million during the quarter, compared to the consensus estimate 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 quarter last year, the company earned $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. Analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling at Astera Labs

In other Astera Labs news, General Counsel Philip Mazzara sold 10,000 shares of Astera Labs stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $192.16, for a total transaction of $1,921,600.00. Following the completion of the sale, the general counsel directly owned 151,573 shares in the company, valued at $29,126,267.68. The trade was a 6.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Michael Truett Tate sold 18,861 shares of Astera Labs stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $183.51, for a total transaction of $3,461,182.11. Following the sale, the chief financial officer owned 259,512 shares of the company's stock, valued at approximately $47,623,047.12. The trade was a 6.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,092,997 shares of company stock valued at $192,231,120 over the last quarter. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

A number of hedge funds have recently made changes to their positions in ALAB. GAMMA Investing LLC lifted its holdings in shares of Astera Labs by 55.7% in the 1st quarter. GAMMA Investing LLC now owns 794 shares of the company's stock worth $47,000 after acquiring an additional 284 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in shares of Astera Labs by 9.4% in the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 4,946 shares of the company's stock worth $295,000 after acquiring an additional 426 shares during the last quarter. Cambridge Investment Research Advisors Inc. lifted its holdings in shares of Astera Labs by 63.8% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 13,906 shares of the company's stock worth $830,000 after acquiring an additional 5,416 shares during the last quarter. Oppenheimer Asset Management Inc. lifted its holdings in shares of Astera Labs by 73.6% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 15,995 shares of the company's stock worth $954,000 after acquiring an additional 6,783 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Astera Labs by 25.3% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 12,157 shares of the company's stock worth $725,000 after acquiring an additional 2,458 shares during the last quarter. 60.47% of the stock is currently owned by institutional investors.

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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