Astera Labs (NASDAQ:ALAB) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup has raised its price target for Astera Labs (NASDAQ:ALAB) from $160.00 to $275.00, indicating a potential upside of 12.27% from the stock's previous close.
• The company reported a significant earnings beat with $0.44 earnings per share for its last quarter, surpassing analyst estimates and showing a 149.5% year-over-year revenue increase.
• A majority of analysts maintain a positive outlook on Astera Labs, with one Strong Buy rating, 15 Buy ratings, and three Hold ratings, reflecting an overall average rating of "Moderate Buy".

Astera Labs (NASDAQ:ALAB - Get Free Report) had its price target raised by analysts at Citigroup from $160.00 to $275.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's price objective indicates a potential upside of 12.27% from the stock's previous close.

ALAB has been the topic of several other reports. Barclays reissued an "overweight" rating and issued a $155.00 price objective (up from $75.00) on shares of Astera Labs in a research report on Thursday, August 7th. Deutsche Bank Aktiengesellschaft raised their price objective on Astera Labs from $160.00 to $200.00 and gave the company a "buy" rating in a research report on Tuesday, September 2nd. Northland Capmk downgraded Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 22nd. Susquehanna boosted their target price on Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Finally, Zacks Research upgraded Astera Labs to a "strong-buy" rating in a research note on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Astera Labs presently has an average rating of "Moderate Buy" and an average target price of $152.94.

Astera Labs Stock Up 2.6%

Astera Labs stock traded up $6.15 during midday trading on Wednesday, reaching $244.94. The company's stock had a trading volume of 791,136 shares, compared to its average volume of 4,932,053. The business has a 50-day simple moving average of $160.88 and a 200-day simple moving average of $106.04. Astera Labs has a fifty-two week low of $46.06 and a fifty-two week high of $246.12. The company has a market cap of $40.71 billion, a P/E ratio of 436.35, a P/E/G ratio of 5.87 and a beta of 1.48.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly 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. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The company had revenue of $191.93 million during the quarter, compared to the consensus estimate of $172.46 million. During the same period in the previous year, the firm posted $0.13 EPS. Astera Labs's revenue was up 149.5% on a year-over-year basis. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, equities analysts forecast that Astera Labs will post 0.34 earnings per share for the current year.

Insider Activity

In other news, COO Sanjay Gajendra sold 91,441 shares of the firm's 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 $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. This trade represents a 4.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Manuel Alba sold 183,000 shares of the stock in a transaction on 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 completion of the sale, the director owned 385,863 shares in the company, valued at approximately $66,858,482.01. This trade represents a 32.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,649,606 shares of company stock valued at $246,588,601 over the last 90 days. Corporate insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Oliver Lagore Vanvalin Investment Group bought a new stake in shares of Astera Labs in the second quarter worth about $29,000. Bernard Wealth Management Corp. purchased a new stake in shares of Astera Labs during the 2nd quarter valued at about $36,000. Clearstead Trust LLC raised its position in Astera Labs by 46,100.0% in the 2nd quarter. Clearstead Trust LLC now owns 462 shares of the company's stock worth $42,000 after purchasing an additional 461 shares during the period. Advisors Asset Management Inc. boosted its stake in shares of Astera Labs by 68.6% during the second quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares in the last quarter. Finally, Manchester Capital Management LLC raised its holdings in shares of Astera Labs by 141.5% in the second quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock worth $44,000 after buying an additional 283 shares during the last quarter. 60.47% of the stock is owned by institutional investors.

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.

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