Astera Labs (NASDAQ:ALAB) Stock Price Down 2.3% - Here's What Happened

Key Points

• Astera Labs stock price decreased by 2.3%, closing at $159.80, with significant trading volume increasing by 11% compared to the average session.
• Analysts have updated their ratings on Astera Labs, with Stifel Nicolaus raising the target price to $185.00 and Morgan Stanley to $200.00, while others have downgraded their ratings.
• The company reported a 149.5% increase in revenue year-over-year for the last quarter, surpassing analyst expectations with earnings of $0.44 per share against an estimate of $0.33.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price fell 2.3% on Friday . The stock traded as low as $154.50 and last traded at $159.80. 5,822,778 shares changed hands during mid-day trading, an increase of 11% from the average session volume of 5,237,135 shares. The stock had previously closed at $163.55.

Analyst Ratings Changes

ALAB has been the subject of a number of analyst reports. Stifel Nicolaus boosted their price target on Astera Labs from $174.00 to $185.00 and gave the company a "buy" rating in a research note on Friday. Morgan Stanley upped their target price on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a report on Friday, August 29th. Wall Street Zen cut Astera Labs from a "buy" rating to a "hold" rating in a report on Friday, October 3rd. Bank of America began coverage on Astera Labs in a report on Friday, October 3rd. They issued a "neutral" rating and a $230.00 target price on the stock. Finally, Zacks Research lowered Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 6th. Fifteen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $162.06.

Astera Labs Trading Down 2.3%

The stock has a market cap of $26.56 billion, a PE ratio of 285.36, a PEG ratio of 4.02 and a beta of 1.43. The firm has a fifty day simple moving average of $200.07 and a two-hundred day simple moving average of $127.18.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.11. The business 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%.Astera Labs's revenue for the quarter was up 149.5% compared to the same quarter last year. During the same period last year, the company earned $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. Equities analysts forecast that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Activity at Astera Labs

In other Astera Labs news, COO Sanjay Gajendra sold 91,441 shares of the business's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $183.51, for a total transaction of $16,780,337.91. Following the completion of the sale, the chief operating officer owned 2,170,877 shares of the company's stock, valued at approximately $398,377,638.27. The trade was a 4.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Jitendra Mohan sold 91,441 shares of the company's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $183.51, for a total value of $16,780,337.91. Following the completion of the transaction, the chief executive officer directly owned 2,170,877 shares of the company's stock, valued at approximately $398,377,638.27. This trade represents a 4.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,182,514 shares of company stock valued at $202,298,671 in the last 90 days. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Warren Street Wealth Advisors LLC bought a new stake in Astera Labs during the 3rd quarter valued at $202,000. Perigon Wealth Management LLC purchased a new position in shares of Astera Labs in the 3rd quarter valued at about $231,000. Highland Capital Management LLC boosted its holdings in Astera Labs by 199.5% in the 3rd quarter. Highland Capital Management LLC now owns 12,581 shares of the company's stock worth $2,463,000 after buying an additional 8,381 shares during the last quarter. HBK Sorce Advisory LLC acquired a new stake in Astera Labs in the 3rd quarter worth about $260,000. Finally, Yeomans Consulting Group Inc. acquired a new position in shares of Astera Labs during the 3rd quarter worth approximately $488,000. 60.47% of the stock is currently owned by hedge funds and other 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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