Astera Labs (NASDAQ:ALAB) Trading 4.9% Higher - Time to Buy?

Key Points

• Astera Labs' stock experienced a 4.9% increase, closing at $187.95 after trading as high as $190.60, despite a significant drop in share volume compared to previous sessions.
• Wall Street analysts have shown overwhelming optimism, with a consensus rating of "Moderate Buy" and an average target price of $129.13, as several firms upgraded their ratings recently.
• The company's latest quarterly earnings surpassed expectations, reporting $0.44 EPS and a revenue growth of 149.5% year-over-year, indicating strong performance in the semiconductor sector.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price traded up 4.9% during trading on Thursday . The stock traded as high as $190.60 and last traded at $187.95. 2,144,734 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 4,920,340 shares. The stock had previously closed at $179.20.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Wall Street Zen upgraded shares of Astera Labs from a "hold" rating to a "buy" rating in a research note on Saturday, August 16th. Zacks Research upgraded shares of Astera Labs to a "strong-buy" rating in a research note on Tuesday, August 12th. Stifel Nicolaus set a $145.00 price objective on shares of Astera Labs and gave the company a "buy" rating in a research note on Monday, August 4th. William Blair initiated coverage on shares of Astera Labs in a research note on Thursday, May 22nd. They set an "outperform" rating on the stock. Finally, Barclays reiterated an "overweight" rating and set a $155.00 price objective (up previously from $75.00) on shares of Astera Labs in a research note on Thursday, August 7th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $129.13.

Astera Labs Stock Up 6.4%

The stock has a market cap of $31.69 billion, a price-to-earnings ratio of 340.25, a price-to-earnings-growth ratio of 4.53 and a beta of 1.39. The company's 50-day simple moving average is $128.86 and its 200-day simple moving average is $94.43.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.11. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The firm had revenue of $191.93 million during the quarter, compared to analyst estimates of $172.46 million. During the same quarter last year, the business posted $0.13 EPS. The company'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, analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Michael Truett Tate sold 500,000 shares of the firm's stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $90.23, for a total value of $45,115,000.00. Following the completion of 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 SEC, which is accessible through this hyperlink. Also, CEO Jitendra Mohan sold 152,517 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $170.33, for a total transaction of $25,978,220.61. Following the completion of the transaction, the chief executive officer directly owned 450,001 shares of the company's stock, valued at $76,648,670.33. This represents a 25.31% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,205,616 shares of company stock valued at $280,372,731. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

Institutional investors have recently modified their holdings of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Astera Labs by 2,824.4% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 154,524 shares of the company's stock valued at $20,467,000 after buying an additional 149,240 shares during the period. Aigen Investment Management LP boosted its stake in shares of Astera Labs by 50.9% during the 1st quarter. Aigen Investment Management LP now owns 17,920 shares of the company's stock valued at $1,069,000 after buying an additional 6,045 shares during the period. Pacific Point Advisors LLC boosted its stake in shares of Astera Labs by 75.0% during the 1st quarter. Pacific Point Advisors LLC now owns 7,000 shares of the company's stock valued at $418,000 after buying an additional 3,000 shares during the period. Oppenheimer Asset Management Inc. boosted its stake in shares of Astera Labs by 73.6% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 15,995 shares of the company's stock valued at $954,000 after buying an additional 6,783 shares during the period. Finally, Taylor Frigon Capital Management LLC acquired a new stake in shares of Astera Labs during the 1st quarter valued at $1,887,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.