Astera Labs (NASDAQ:ALAB) Trading Down 5% - Here's What Happened

Key Points

• Astera Labs shares dropped 5% during mid-day trading, with a significant decline in trading volume, falling to $173.06 from a previous close of $182.20.
• Equities research analysts have a generally positive outlook on Astera Labs, with multiple ratings as "outperform," including a raised target price from Evercore ISI to $215.00.
• Key insiders sold large amounts of stock recently, including the CFO and CEO, reflecting a decrease in their ownership—by 16.16% and 25.31% respectively—amid overall robust earnings performance.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) dropped 5% during mid-day trading on Tuesday . The company traded as low as $172.51 and last traded at $173.06. Approximately 1,792,877 shares were traded during mid-day trading, a decline of 63% from the average daily volume of 4,909,599 shares. The stock had previously closed at $182.20.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on ALAB shares. William Blair assumed coverage on Astera Labs in a research note on Thursday, May 22nd. They set an "outperform" rating for the company. Evercore ISI boosted their target price on Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. Barclays reaffirmed an "overweight" rating and set a $155.00 target price (up previously from $75.00) on shares of Astera Labs in a research note on Thursday, August 7th. Roth Capital set a $100.00 price target on Astera Labs and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Finally, Northland Capmk downgraded Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $142.00.

Astera Labs Trading Down 5.2%

The stock has a fifty day moving average price of $134.36 and a 200-day moving average price of $96.42. The firm has a market capitalization of $28.72 billion, a price-to-earnings ratio of 308.38, a PEG ratio of 4.62 and a beta of 1.46.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.11. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The business had revenue of $191.93 million during the quarter, compared to analysts' expectations of $172.46 million. During the same period in the prior year, the firm posted $0.13 EPS. Astera Labs's quarterly revenue 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 analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Michael Truett Tate sold 100,000 shares of the business's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $171.38, for a total value of $17,138,000.00. Following the sale, the chief financial officer directly owned 518,996 shares in the company, valued at $88,945,534.48. The trade was a 16.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Jitendra Mohan sold 152,517 shares of Astera Labs stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $170.33, for a total transaction of $25,978,220.61. Following the completion of the sale, the chief executive officer owned 450,001 shares in the company, valued at $76,648,670.33. This trade represents a 25.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,728,116 shares of company stock worth $239,272,181. Corporate insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

A number of institutional investors have recently made changes to their positions in ALAB. China Universal Asset Management Co. Ltd. boosted its stake 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 valued at $922,000 after buying an additional 6,500 shares during the period. Munro Partners acquired a new stake in shares of Astera Labs in the 2nd quarter valued at approximately $2,355,000. Thrivent Financial for Lutherans acquired a new stake in shares of Astera Labs in the 2nd quarter valued at approximately $592,000. Marex Group plc acquired a new position in shares of Astera Labs during the second quarter worth $2,197,000. Finally, MRP Capital Investments LLC acquired a new position in shares of Astera Labs during the second quarter worth $318,000. 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.

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