Astera Labs (NASDAQ:ALAB) Stock Price Up 4% - Time to Buy?

Key Points

• Astera Labs' stock price increased by 4% to $223.05, with trading volume dropping significantly to 2,028,802 shares, a 59% decrease from its average.
• Wall Street analysts are bullish on Astera Labs, with multiple upgrades: Susquehanna raised its price target to $125, while Zacks gave a "strong-buy" rating.
• Astera Labs reported a 149.5% increase in quarterly revenue year-over-year, with earnings of $0.44 per share, surpassing expectations by $0.11.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s share price rose 4% during mid-day trading on Wednesday . The stock traded as high as $227.32 and last traded at $223.05. 2,028,802 shares were traded during trading, a decline of 59% from the average session volume of 4,956,123 shares. The stock had previously closed at $214.49.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on ALAB shares. Susquehanna boosted their price objective on shares of Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. William Blair assumed coverage on Astera Labs in a report on Thursday, May 22nd. They issued an "outperform" rating for the company. Wall Street Zen raised Astera Labs from a "hold" rating to a "buy" rating in a research note on Saturday, August 16th. Zacks Research raised Astera Labs to a "strong-buy" rating in a research report on Tuesday, August 12th. Finally, CICC Research began coverage on Astera Labs in a research note on Friday, August 29th. They issued an "outperform" rating and a $190.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $142.00.

Astera Labs Trading Up 6.5%

The firm has a market capitalization of $37.98 billion, a price-to-earnings ratio of 407.79, a price-to-earnings-growth ratio of 5.48 and a beta of 1.48. The firm has a 50 day moving average price of $146.67 and a two-hundred day moving average price of $100.71.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly 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 for the quarter, compared to analyst estimates of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. Astera Labs's revenue for the quarter was up 149.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, research analysts forecast 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, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction dated 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 transaction, the director owned 385,863 shares in the company, valued at $66,858,482.01. The trade was a 32.17% 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 100,000 shares of the company's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $171.38, for a total value of $17,138,000.00. Following the completion of the sale, the chief financial officer directly owned 518,996 shares of the company's stock, valued at $88,945,534.48. The trade was a 16.16% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,832,489 shares of company stock worth $264,172,396. Insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors and hedge funds have recently bought and sold shares of ALAB. Great Valley Advisor Group Inc. raised its stake in shares of Astera Labs by 2.2% during the second quarter. Great Valley Advisor Group Inc. now owns 4,119 shares of the company's stock valued at $372,000 after purchasing an additional 90 shares during the period. Straight Path Wealth Management grew its holdings in Astera Labs by 1.5% during the 2nd quarter. Straight Path Wealth Management now owns 6,850 shares of the company's stock valued at $619,000 after purchasing an additional 100 shares in the last quarter. First Horizon Advisors Inc. increased its stake in Astera Labs by 12.4% during the 2nd quarter. First Horizon Advisors Inc. now owns 982 shares of the company's stock worth $89,000 after buying an additional 108 shares during the period. Advisors Asset Management Inc. lifted its holdings in Astera Labs by 68.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock worth $43,000 after buying an additional 194 shares in the last quarter. Finally, Hoey Investments Inc. boosted its position in Astera Labs by 4.2% in the 1st quarter. Hoey Investments Inc. now owns 5,000 shares of the company's stock valued at $298,000 after buying an additional 200 shares during the last quarter. Hedge funds and other 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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