Astera Labs (NASDAQ:ALAB) Trading Down 3.2% - Time to Sell?

Key Points

• Astera Labs' stock price dropped 3.2% to $199.53 during trading, with trading volume increasing by 45% compared to the average session volume.
• Research firms have offered mixed ratings on Astera Labs, with Weiss Ratings maintaining a "hold" rating while Evercore ISI set a higher price target of $215 and categorized the stock as "outperform."
• Insider activity includes CEO Jitendra Mohan selling 91,441 shares for over $16 million, representing a 4.04% decrease in his position.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price fell 3.2% during trading on Monday . The stock traded as low as $196.00 and last traded at $199.53. 7,449,536 shares were traded during trading, an increase of 45% from the average session volume of 5,152,462 shares. The stock had previously closed at $206.21.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on ALAB. Weiss Ratings reissued a "hold (c-)" rating on shares of Astera Labs in a research report on Wednesday, October 8th. Evercore ISI upped their price objective on shares of Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. Zacks Research downgraded shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 6th. Cowen started coverage on shares of Astera Labs in a research report on Tuesday, September 30th. They issued a "hold" rating for the company. Finally, TD Cowen started coverage on shares of Astera Labs in a research report on Wednesday, October 1st. They issued a "hold" rating and a $200.00 price objective for the company. Fifteen research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, Astera Labs currently has an average rating of "Moderate Buy" and an average price target of $159.83.

Astera Labs Stock Performance

The firm has a market capitalization of $33.17 billion, a PE ratio of 356.30, a PEG ratio of 5.14 and a beta of 1.43. The company's 50 day simple moving average is $198.72 and its 200-day simple moving average is $125.00.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping 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 analysts' expectations of $172.46 million. During the same period in the prior year, the company posted $0.13 EPS. The business'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, equities research analysts forecast that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Jitendra Mohan sold 91,441 shares of the firm's stock in a transaction on 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 sale, the chief executive 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 position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Jack R. Lazar sold 22,500 shares of the firm's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $178.42, for a total transaction of $4,014,450.00. Following the sale, the director owned 97,351 shares in the company, valued at approximately $17,369,365.42. This trade represents a 18.77% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,308,772 shares of company stock worth $214,482,678. Corporate insiders own 12.50% of the company's stock.

Institutional Trading of Astera Labs

Several institutional investors and hedge funds have recently made changes to their positions in ALAB. Oliver Lagore Vanvalin Investment Group purchased a new stake in shares of Astera Labs during the 2nd quarter valued at $29,000. Bernard Wealth Management Corp. bought a new position in shares of Astera Labs during the 2nd quarter valued at $36,000. Clearstead Trust LLC grew its holdings in shares of Astera Labs by 46,100.0% during 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 last quarter. Advisors Asset Management Inc. grew its holdings in shares of Astera Labs by 68.6% during 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 last quarter. Finally, Manchester Capital Management LLC grew its holdings in shares of Astera Labs by 141.5% during the 2nd quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock valued at $44,000 after purchasing an additional 283 shares during the last quarter. Hedge funds and other 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.

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