Astera Labs (NASDAQ:ALAB) Trading Down 10.8% - Here's Why

Key Points

• Astera Labs' stock dropped by 10.8% during mid-day trading, reaching a low of $195.68, after closing at $230.11 the previous day.
• Multiple analysts have upgraded their ratings on Astera Labs, with price targets ranging from $160 to $215, indicating strong market interest despite recent price declines.
• Insider trading activity included significant sales by top executives, with the CFO selling 100,000 shares worth over $17 million, raising concerns about insider sentiment.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) fell 10.8% during mid-day trading on Wednesday . The stock traded as low as $195.68 and last traded at $205.27. 13,203,025 shares were traded during trading, an increase of 158% from the average session volume of 5,123,897 shares. The stock had previously closed at $230.11.

Analyst Upgrades and Downgrades

Several research firms have issued reports on ALAB. Deutsche Bank Aktiengesellschaft upped their price target on shares of Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, September 2nd. Zacks Research upgraded shares of Astera Labs to a "strong-buy" rating in a report on Tuesday, August 12th. Evercore ISI upped their price objective on shares of Astera Labs from $104.00 to $215.00 and gave the company an "outperform" rating in a report on Wednesday, August 6th. Northland Securities downgraded shares of Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective on the stock. in a report on Tuesday, July 22nd. Finally, CICC Research initiated coverage on shares of Astera Labs in a report on Friday, August 29th. They issued an "outperform" rating and a $190.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $152.94.

Astera Labs Stock Down 10.8%

The company's 50 day moving average is $175.65 and its 200 day moving average is $112.14. The firm has a market capitalization of $34.12 billion, a price-to-earnings ratio of 366.61, a P/E/G ratio of 6.02 and a beta of 1.48.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released 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. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The business had revenue of $191.93 million for the quarter, compared to the consensus estimate of $172.46 million. During the same period in the prior year, the company posted $0.13 earnings per share. Astera Labs'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. On average, analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insider Buying and Selling at Astera Labs

In related news, CFO Michael Truett Tate sold 100,000 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $171.38, for a total value of $17,138,000.00. Following the completion of the transaction, the chief financial officer owned 518,996 shares in the company, valued at $88,945,534.48. This trade represents a 16.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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 shares were 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 owned 450,001 shares of the company's stock, valued at approximately $76,648,670.33. This trade represents a 25.31% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,576,027 shares of company stock worth $239,177,011 in the last 90 days. Corporate insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Oliver Lagore Vanvalin Investment Group acquired a new stake in Astera Labs in the 2nd quarter valued at $29,000. Bernard Wealth Management Corp. acquired a new stake in Astera Labs in the 2nd quarter valued at $36,000. Clearstead Trust LLC grew its position in Astera Labs by 46,100.0% in the 2nd quarter. Clearstead Trust LLC now owns 462 shares of the company's stock valued at $42,000 after purchasing an additional 461 shares during the period. Advisors Asset Management Inc. grew its position in Astera Labs by 68.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares during the period. Finally, Manchester Capital Management LLC boosted its holdings in Astera Labs by 141.5% during the 2nd quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock worth $44,000 after acquiring an additional 283 shares during the last quarter. Institutional investors own 60.47% of the company's stock.

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.

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.