Astera Labs (NASDAQ:ALAB) Stock Rating Lowered by Wall Street Zen

Key Points

• Astera Labs has been downgraded from a "buy" rating to a "hold" rating by analysts at Wall Street Zen.
• Despite the downgrade, analysts have varying views, with CICC Research giving an "outperform" rating and a target price of $190, while Citigroup raised its target price to $275 with a "buy" rating.
• Insider trading activity shows that both the COO and CEO sold significant shares on August 7, indicating a 4.82% and 25.31% decrease in their respective ownership after the sales.

Astera Labs (NASDAQ:ALAB - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Friday.

Several other analysts have also recently weighed in on the company. Cowen started coverage on Astera Labs in a report on Tuesday. They set a "hold" rating on the stock. CICC Research initiated coverage on Astera Labs in a report on Friday, August 29th. They issued an "outperform" rating and a $190.00 target price on the stock. Citigroup upped their target price on Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. 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. Finally, Susquehanna upped their target price on Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $159.83.

Astera Labs Stock Performance

Shares of NASDAQ:ALAB traded down $8.86 during midday trading on Friday, hitting $200.74. 5,183,840 shares of the stock were exchanged, compared to its average volume of 6,679,240. The stock has a market capitalization of $33.37 billion, a price-to-earnings ratio of 358.46, a P/E/G ratio of 5.32 and a beta of 1.43. The business's 50-day moving average price is $189.83 and its 200 day moving average price is $119.14. Astera Labs has a 12 month low of $47.13 and a 12 month high of $262.90.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly 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 company had revenue of $191.93 million for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same period in the previous year, the business posted $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, sell-side analysts expect that Astera Labs will post 0.34 EPS for the current year.

Insiders Place Their Bets

In other Astera Labs news, COO Sanjay Gajendra sold 280,000 shares of the stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $170.02, for a total transaction of $47,605,600.00. Following the transaction, the chief operating officer directly owned 5,525,545 shares in the company, valued at approximately $939,453,160.90. This represents a 4.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jitendra Mohan sold 152,517 shares of the stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $170.33, for a total value of $25,978,220.61. Following the transaction, the chief executive officer owned 450,001 shares in the company, valued at $76,648,670.33. The trade was a 25.31% 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 over the last 90 days. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Astera Labs by 29.6% during the second quarter. Vanguard Group Inc. now owns 12,049,223 shares of the company's stock worth $1,089,491,000 after purchasing an additional 2,751,747 shares during the period. Alliancebernstein L.P. lifted its stake in Astera Labs by 114.2% during the 1st quarter. Alliancebernstein L.P. now owns 8,401,019 shares of the company's stock valued at $501,289,000 after acquiring an additional 4,478,741 shares in the last quarter. Atreides Management LP lifted its stake in Astera Labs by 153.3% during the 1st quarter. Atreides Management LP now owns 4,652,264 shares of the company's stock valued at $277,601,000 after acquiring an additional 2,815,614 shares in the last quarter. State Street Corp lifted its stake in Astera Labs by 39.3% during the 2nd quarter. State Street Corp now owns 2,143,459 shares of the company's stock valued at $193,812,000 after acquiring an additional 604,363 shares in the last quarter. Finally, Fred Alger Management LLC lifted its stake in Astera Labs by 13.0% during the 1st quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company's stock valued at $93,087,000 after acquiring an additional 179,638 shares in the last quarter. 60.47% of the stock is owned by institutional investors and hedge funds.

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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