Astera Labs (NASDAQ:ALAB) Trading 3.4% Higher Following Analyst Upgrade

Key Points

• Astera Labs' stock price rose by 3.4% after Susquehanna upgraded its price target from $80.00 to $125.00, currently holding a neutral rating.
• Insider transactions revealed that CFO Michael Truett Tate sold 500,000 shares, reducing his holdings by nearly 45%, while COO Sanjay Gajendra sold 165,000 shares, representing an 18% decrease in his position.
• Astera Labs reported a quarterly earnings per share of $0.44, exceeding estimates, with revenue up 149.5% year-over-year, amounting to $191.93 million.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price shot up 3.4% during trading on Friday after Susquehanna raised their price target on the stock from $80.00 to $125.00. Susquehanna currently has a neutral rating on the stock. Astera Labs traded as high as $177.90 and last traded at $176.72. 3,184,278 shares were traded during mid-day trading, a decline of 36% from the average session volume of 4,946,215 shares. The stock had previously closed at $170.89.

ALAB has been the subject of several other research reports. Wall Street Zen lowered Astera Labs from a "buy" rating to a "hold" rating in a report on Saturday, July 12th. Evercore ISI lifted their target price on Astera Labs from $104.00 to $215.00 and gave the company an "outperform" rating in a report on Wednesday. Northland Securities lowered shares of Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective for the company. in a research report on Tuesday, July 22nd. Roth Capital set a $100.00 target price on shares of Astera Labs and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Finally, William Blair started coverage on shares of Astera Labs in a research report on Thursday, May 22nd. They set an "outperform" rating for the company. Four research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company's stock. Based on data from MarketBeat, Astera Labs currently has a consensus rating of "Moderate Buy" and a consensus price target of $129.13.

Insider Activity at Astera Labs

In related news, CFO Michael Truett Tate sold 500,000 shares of the stock in a transaction on Friday, May 30th. The shares were sold at an average price of $90.23, for a total transaction of $45,115,000.00. Following the transaction, the chief financial officer owned 618,996 shares of the company's stock, valued at approximately $55,852,009.08. This trade represents a 44.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Sanjay Gajendra sold 165,000 shares of Astera Labs stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $98.25, for a total transaction of $16,211,250.00. Following the completion of the transaction, the chief operating officer owned 735,000 shares in the company, valued at approximately $72,213,750. The trade was a 18.33% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,941,759 shares of company stock valued at $183,714,281.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Corebridge Financial Inc. boosted its holdings in Astera Labs by 359.9% during the 4th quarter. Corebridge Financial Inc. now owns 814 shares of the company's stock valued at $108,000 after acquiring an additional 637 shares during the period. National Bank of Canada FI lifted its position in Astera Labs by 121.7% in the fourth quarter. National Bank of Canada FI now owns 541 shares of the company's stock valued at $72,000 after purchasing an additional 297 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Astera Labs during the fourth quarter valued at approximately $202,000. Envestnet Asset Management Inc. grew its holdings in shares of Astera Labs by 204.3% in the fourth quarter. Envestnet Asset Management Inc. now owns 85,553 shares of the company's stock worth $11,331,000 after purchasing an additional 57,434 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its stake in shares of Astera Labs by 33,535.3% in the fourth quarter. Russell Investments Group Ltd. now owns 11,436 shares of the company's stock worth $1,517,000 after buying an additional 11,402 shares during the period. 60.47% of the stock is owned by institutional investors.

Astera Labs Trading Up 2.7%

The company has a market capitalization of $28.95 billion, a P/E ratio of 314.28, a price-to-earnings-growth ratio of 8.19 and a beta of 1.39. The stock's fifty day moving average is $104.16 and its 200 day moving average is $86.99.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.11. The firm had revenue of $191.93 million for the quarter, compared to analysts' expectations of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.95%. The company's revenue for the quarter was up 149.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.13 earnings per share. On average, analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

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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