Astera Labs (NASDAQ:ALAB) Trading Down 1.5% - What's Next?

Key Points

• Astera Labs' stock experienced a decline of 1.5% on Tuesday, trading at $195.80 after hitting a low of $189.28, with a notable trading volume increase to approximately 5.47 million shares.
• Analysts have mixed views on Astera Labs, with a price target set as high as $145.00 from Stifel Nicolaus and a consensus target price of around $152.94, reflecting a predominance of buy ratings.
• In its latest quarterly earnings report, Astera Labs posted earnings per share of $0.44, surpassing estimates and showcasing a remarkable 149.5% year-over-year revenue growth to $191.93 million.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price was down 1.5% on Tuesday . The stock traded as low as $189.28 and last traded at $195.80. Approximately 5,474,560 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 5,117,214 shares. The stock had previously closed at $198.80.

Wall Street Analyst Weigh In

A number of analysts have commented on ALAB shares. Stifel Nicolaus set a $145.00 price target on shares of Astera Labs and gave the company a "buy" rating in a research note on Monday, August 4th. Northland Securities lowered shares of Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price target for the company. in a research note on Tuesday, July 22nd. Zacks Research upgraded shares of Astera Labs to a "strong-buy" rating in a research note on Tuesday, August 12th. Susquehanna boosted their price target on shares of Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Finally, Cowen started coverage on shares of Astera Labs in a research note on Tuesday. They set a "hold" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Astera Labs has an average rating of "Moderate Buy" and a consensus target price of $152.94.

Astera Labs Stock Down 1.5%

The company has a 50-day moving average price of $183.42 and a two-hundred day moving average price of $116.20. The stock has a market capitalization of $32.55 billion, a P/E ratio of 349.64, a PEG ratio of 5.02 and a beta of 1.46.

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

Insider Activity

In other news, CEO Jitendra Mohan sold 91,441 shares of the company's stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $183.51, for a total transaction of $16,780,337.91. Following the sale, the chief executive officer directly owned 2,170,877 shares in the company, valued at $398,377,638.27. This represents a 4.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, COO Sanjay Gajendra sold 91,441 shares of the company's stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $183.51, for a total transaction of $16,780,337.91. Following the completion of the transaction, the chief operating officer owned 2,170,877 shares in the company, valued at approximately $398,377,638.27. This trade represents a 4.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,576,027 shares of company stock valued at $239,177,011. 12.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Corient Private Wealth LLC bought a new position in shares of Astera Labs in the second quarter worth approximately $543,000. Osaic Holdings Inc. increased its position in shares of Astera Labs by 208.0% in the second quarter. Osaic Holdings Inc. now owns 60,787 shares of the company's stock worth $5,496,000 after purchasing an additional 41,051 shares during the last quarter. China Universal Asset Management Co. Ltd. increased its position in shares of Astera Labs by 175.7% in the second quarter. China Universal Asset Management Co. Ltd. now owns 10,200 shares of the company's stock worth $922,000 after purchasing an additional 6,500 shares during the last quarter. Munro Partners bought a new position in shares of Astera Labs in the second quarter worth approximately $2,355,000. Finally, Thrivent Financial for Lutherans bought a new position in Astera Labs during the second quarter valued at approximately $592,000. 60.47% of the stock is currently owned by 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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