Astera Labs (NASDAQ:ALAB) Trading Down 1.4% - Should You Sell?

Key Points

• Astera Labs' stock dropped 1.4% on Friday, trading between $193.25 and $197.78, with a significant decline in trading volume.
• Analysts have mixed ratings on Astera Labs, with one Strong Buy, fifteen Buy, and three Hold ratings, while a consensus target price stands at $152.94.
• Institutional investors own 60.47% of Astera Labs, with Vanguard Group significantly increasing its stake by 29.6% recently.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) dropped 1.4% during mid-day trading on Friday . The stock traded as low as $193.25 and last traded at $197.78. Approximately 3,309,038 shares traded hands during mid-day trading, a decline of 35% from the average daily volume of 5,120,711 shares. The stock had previously closed at $200.64.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. CICC Research began coverage on shares of Astera Labs in a report on Friday, August 29th. They set an "outperform" rating and a $190.00 price target on the stock. Northland Securities lowered Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 target price for the company. in a research report on Tuesday, July 22nd. Morgan Stanley upped their price target on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 29th. Deutsche Bank Aktiengesellschaft raised their price objective on Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, September 2nd. Finally, Needham & Company LLC lifted their price objective on Astera Labs from $100.00 to $170.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $152.94.

Astera Labs Price Performance

The stock has a fifty day simple moving average of $179.97 and a two-hundred day simple moving average of $113.74. The firm has a market capitalization of $32.87 billion, a P/E ratio of 353.18, a P/E/G ratio of 5.21 and a beta of 1.48.

Astera Labs (NASDAQ:ALAB - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.33 by $0.11. The company had revenue of $191.93 million during the quarter, compared to the consensus estimate of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The company's quarterly revenue was up 149.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, sell-side analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

Insider Transactions at Astera Labs

In related news, Director Manuel Alba sold 183,000 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $173.27, for a total value of $31,708,410.00. Following the transaction, the director directly owned 385,863 shares in the company, valued at $66,858,482.01. This trade represents a 32.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Michael Truett Tate sold 100,000 shares of Astera Labs stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $171.38, for a total transaction of $17,138,000.00. Following the completion of the sale, the chief financial officer directly owned 518,996 shares of the company's stock, valued at approximately $88,945,534.48. The trade was a 16.16% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,576,027 shares of company stock valued at $239,177,011 over the last ninety days. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

Several hedge funds and other institutional investors have recently made changes to their positions in ALAB. Vanguard Group Inc. lifted its position in Astera Labs by 29.6% in the 2nd quarter. Vanguard Group Inc. now owns 12,049,223 shares of the company's stock valued at $1,089,491,000 after acquiring an additional 2,751,747 shares in the last quarter. Alliancebernstein L.P. raised its stake in shares of Astera Labs by 114.2% in the first quarter. Alliancebernstein L.P. now owns 8,401,019 shares of the company's stock worth $501,289,000 after purchasing an additional 4,478,741 shares during the last quarter. Atreides Management LP lifted its holdings in shares of 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 purchasing an additional 2,815,614 shares in the last quarter. State Street Corp boosted its position in shares of Astera Labs by 39.3% during the second quarter. State Street Corp now owns 2,143,459 shares of the company's stock valued at $193,812,000 after buying an additional 604,363 shares during the last quarter. Finally, Fred Alger Management LLC grew its holdings in 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 buying an additional 179,638 shares in the last quarter. 60.47% of the stock is owned by institutional investors.

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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