Astera Labs (NASDAQ:ALAB) Trading Down 3.2% - Here's What Happened

Key Points

• Astera Labs' stock (NASDAQ:ALAB) fell 3.2% during mid-day trading, with shares traded at approximately $237.30 after closing at $245.20.
• Brokerages have issued optimistic price targets for Astera Labs, with Citigroup raising its target from $160.00 to $275.00 and several others maintaining "buy" ratings.
• The company reported a significant revenue increase of 149.5% year-over-year, with earnings per share of $0.44, surpassing analysts' expectations.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) was down 3.2% on Monday . The stock traded as low as $232.00 and last traded at $237.30. Approximately 6,185,984 shares were traded during trading, an increase of 22% from the average daily volume of 5,072,348 shares. The stock had previously closed at $245.20.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on ALAB shares. Northland Securities downgraded Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price target for the company. in a report on Tuesday, July 22nd. Citigroup boosted their price target on shares of Astera Labs from $160.00 to $275.00 and gave the stock a "buy" rating in a research note on Wednesday, September 17th. Stifel Nicolaus set a $145.00 price target on shares of Astera Labs and gave the stock a "buy" rating in a research note on Monday, August 4th. Morgan Stanley boosted their price target on shares of Astera Labs from $155.00 to $200.00 and gave the stock an "overweight" rating in a research note on Friday, August 29th. Finally, Northland Capmk lowered shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 22nd. One equities research 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's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $152.94.

Astera Labs Stock Down 4.0%

The company has a market cap of $37.86 billion, a PE ratio of 406.69, a P/E/G ratio of 6.22 and a beta of 1.46. The firm's fifty day simple moving average is $172.89 and its 200-day simple moving average is $111.31.

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 (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 company had revenue of $191.93 million for the quarter, compared to the consensus estimate of $172.46 million. During the same quarter in the prior year, the firm earned $0.13 earnings per share. The company's revenue for the quarter 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 predict that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $173.27, for a total value of $31,708,410.00. Following the sale, the director owned 385,863 shares of the company's stock, valued at $66,858,482.01. This represents a 32.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jitendra Mohan sold 91,441 shares of the company's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $183.51, for a total transaction of $16,780,337.91. Following the completion of the sale, the chief executive officer directly owned 2,170,877 shares in the company, valued at $398,377,638.27. This trade represents a 4.04% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,576,027 shares of company stock valued at $239,177,011. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Astera Labs

Institutional investors and hedge funds have recently modified their holdings of the company. Fred Alger Management LLC lifted its stake 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 valued at $93,087,000 after buying an additional 179,638 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Astera Labs by 2,824.4% during the fourth 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. Hoey Investments Inc. lifted its stake in shares of Astera Labs by 22.4% during the second quarter. Hoey Investments Inc. now owns 6,121 shares of the company's stock valued at $553,000 after buying an additional 1,121 shares during the period. Aigen Investment Management LP lifted its stake in shares of Astera Labs by 50.9% during the first 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. Finally, Pacific Point Advisors LLC lifted its stake in shares of Astera Labs by 75.0% during the first 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. Hedge funds and other institutional investors 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.