Astera Labs (NASDAQ:ALAB) Stock Price Down 2.7% - Should You Sell?

Key Points

• Astera Labs' stock fell 3.8%, with trading volumes dropping significantly to 1,332,164 shares, down 73%% from the average.
• Wall Street analysts have a generally positive outlook on Astera Labs, with a consensus average price target of $152.94 and multiple analysts rating it as a "Buy".
• Astera Labs reported a 149.5% year-over-year revenue growth, reaching $191.93 million for the recent quarter, exceeding analyst expectations by nearly $20 million.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) fell 2.7% on Friday . The company traded as low as $231.18 and last traded at $245.20. 22,420,803 shares were traded during trading, an increase of 343% from the average session volume of 5,056,494 shares. The stock had previously closed at $251.88.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Zacks Research upgraded Astera Labs to a "strong-buy" rating in a report on Tuesday, August 12th. Citigroup lifted 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. CICC Research began coverage on shares of Astera Labs in a research note on Friday, August 29th. They set an "outperform" rating and a $190.00 price objective on the stock. Evercore ISI boosted their target price 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. Finally, Stifel Nicolaus set a $145.00 target price on shares of Astera Labs and gave the company a "buy" rating in a research note on Monday, August 4th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $152.94.

Astera Labs Trading Down 3.2%

The stock's 50-day moving average price is $169.95 and its 200-day moving average price is $110.12. The company has a market capitalization of $39.44 billion, a P/E ratio of 423.75, a P/E/G ratio of 6.22 and a beta of 1.46.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 earnings per share 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 firm had revenue of $191.93 million for the quarter, compared to analyst estimates of $172.46 million. During the same quarter in the prior year, the business earned $0.13 earnings per share. Astera Labs's quarterly 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. Sell-side analysts expect that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the firm's 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 sale, the director directly owned 385,863 shares in the company, valued at approximately $66,858,482.01. This trade represents a 32.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, COO Sanjay Gajendra 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 transaction, the chief operating officer owned 2,170,877 shares of the company's stock, valued at $398,377,638.27. This represents a 4.04% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,576,713 shares of company stock worth $239,237,016. 12.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ALAB. Osaic Holdings Inc. increased its stake 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 valued at $5,496,000 after purchasing an additional 41,051 shares during the period. China Universal Asset Management Co. Ltd. grew its position in Astera Labs by 175.7% in the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 10,200 shares of the company's stock valued at $922,000 after buying an additional 6,500 shares in the last quarter. Munro Partners acquired a new position in Astera Labs during the 2nd quarter valued at about $2,355,000. Thrivent Financial for Lutherans bought a new stake in shares of Astera Labs during the 2nd quarter worth about $592,000. Finally, Marex Group plc acquired a new stake in shares of Astera Labs in the 2nd quarter worth approximately $2,197,000. 60.47% of the stock is owned by institutional investors and hedge funds.

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.