Astera Labs (NASDAQ:ALAB) Trading 6.8% Higher - Still a Buy?

Key Points

• Astera Labs shares rose 6.8%, trading at $207.64, with a significant decrease in trading volume of about 76% from the average.
• Analysts have varied ratings on the stock, with Citigroup upgrading its target price to $275.00 and maintaining a "buy" rating, while Northland Securities downgraded it to a "market perform" with a target of $120.00.
• The company reported a 149.5% year-over-year revenue increase, reaching $191.93 million, with earnings per share of $0.44, surpassing expectations.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s share price traded up 6.8% during mid-day trading on Thursday . The stock traded as high as $203.76 and last traded at $207.64. 1,207,553 shares changed hands during trading, a decline of 76% from the average session volume of 5,090,916 shares. The stock had previously closed at $194.50.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Citigroup boosted their target price on shares of Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. CICC Research started coverage on shares of Astera Labs in a research report on Friday, August 29th. They set an "outperform" rating and a $190.00 price target on the stock. Susquehanna increased their price objective on Astera Labs from $80.00 to $125.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Northland Securities cut Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 target price for the company. in a research note on Tuesday, July 22nd. Finally, TD Cowen began coverage on Astera Labs in a research note on Wednesday. They issued a "hold" rating and a $200.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Astera Labs presently has an average rating of "Moderate Buy" and a consensus price target of $155.71.

Astera Labs Stock Up 7.3%

The stock has a 50-day moving average price of $186.50 and a 200 day moving average price of $117.29. The firm has a market capitalization of $34.69 billion, a price-to-earnings ratio of 373.53, a P/E/G ratio of 4.97 and a beta of 1.43.

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

Insider Buying and Selling at Astera Labs

In other news, Director Jack R. Lazar sold 22,500 shares of the company's stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $178.42, for a total transaction of $4,014,450.00. Following the completion of the transaction, the director directly owned 97,351 shares of the company's stock, valued at approximately $17,369,365.42. This represents a 18.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Jitendra Mohan sold 91,441 shares of the stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $183.51, for a total value of $16,780,337.91. Following the completion of the transaction, the chief executive officer owned 2,170,877 shares in the company, valued at approximately $398,377,638.27. The trade was a 4.04% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,482,036 shares of company stock worth $230,685,952. 12.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Astera Labs

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in shares of Astera Labs by 29.6% during the 2nd quarter. Vanguard Group Inc. now owns 12,049,223 shares of the company's stock worth $1,089,491,000 after buying an additional 2,751,747 shares during the last quarter. Alliancebernstein L.P. raised 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 worth $501,289,000 after acquiring an additional 4,478,741 shares in the last quarter. Atreides Management LP lifted its position in Astera Labs by 153.3% in the first 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 during the last quarter. State Street Corp boosted its stake in Astera Labs by 39.3% in the second 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 grew its holdings in shares of Astera Labs by 13.0% during the first quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company's stock worth $93,087,000 after purchasing an additional 179,638 shares during the last quarter. 60.47% of the stock is currently owned by hedge funds and other institutional investors.

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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