Astera Labs (NASDAQ:ALAB) Stock Price Down 3.9% - Here's What Happened

Key Points

• Astera Labs' stock decreased by 3.9%, trading at $212.10 after hitting a low of $205.92 during mid-day trading, with a significant drop in trading volume.
• Analysts have shown confidence in Astera Labs, with multiple firms adjusting their price targets upward, including a boost from Needham & Company from $100 to $170.
• Insider trading activity includes significant sales, with CEO Jitendra Mohan selling over 152,000 shares, reducing his stake by 25.31%, which raises concerns among investors.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price was down 3.9% during mid-day trading on Tuesday . The stock traded as low as $205.92 and last traded at $212.10. Approximately 4,764,708 shares were traded during mid-day trading, a decline of 7% from the average daily volume of 5,141,414 shares. The stock had previously closed at $220.81.

Analyst Ratings Changes

ALAB has been the topic of several analyst reports. Needham & Company LLC boosted their price target on shares of Astera Labs from $100.00 to $170.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Deutsche Bank Aktiengesellschaft increased 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. Stifel Nicolaus set a $145.00 price objective on shares of Astera Labs and gave the company a "buy" rating in a report on Monday, August 4th. Jefferies Financial Group upped their price objective on shares of Astera Labs from $95.00 to $130.00 and gave the company a "buy" rating in a research report on Tuesday, July 22nd. Finally, Morgan Stanley raised their price objective on shares of Astera Labs from $155.00 to $200.00 and gave the stock an "overweight" rating in a report on Friday, August 29th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, Astera Labs presently has an average rating of "Moderate Buy" and a consensus target price of $159.83.

Astera Labs Stock Performance

The stock has a market cap of $35.26 billion, a price-to-earnings ratio of 378.75, a P/E/G ratio of 5.09 and a beta of 1.43. The stock has a fifty day simple moving average of $191.76 and a two-hundred day simple moving average of $120.89.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.44 EPS 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 the consensus estimate of $172.46 million. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The business's quarterly revenue was up 149.5% on a year-over-year basis. During the same period last year, the company earned $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. Equities analysts expect that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Jitendra Mohan sold 152,517 shares of Astera Labs stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 450,001 shares in the company, valued at approximately $76,648,670.33. The trade was a 25.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Sanjay Gajendra sold 280,000 shares of the business's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $170.02, for a total transaction of $47,605,600.00. Following the transaction, the chief operating officer owned 5,525,545 shares of the company's stock, valued at $939,453,160.90. This trade represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,492,036 shares of company stock valued at $232,607,552 in the last three months. 12.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Astera Labs

Large investors have recently modified their holdings of the stock. Oliver Lagore Vanvalin Investment Group bought a new position in Astera Labs in the 2nd quarter worth about $29,000. Grove Bank & Trust purchased a new stake in Astera Labs during the 3rd quarter valued at approximately $68,000. Bernard Wealth Management Corp. bought a new position in Astera Labs during the second quarter valued at approximately $36,000. Clearstead Trust LLC raised its stake in Astera Labs by 46,100.0% during the second quarter. Clearstead Trust LLC now owns 462 shares of the company's stock valued at $42,000 after purchasing an additional 461 shares in the last quarter. Finally, Advisors Asset Management Inc. lifted its stake in shares of Astera Labs by 68.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares during the last quarter. Institutional investors 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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