Astera Labs (NASDAQ:ALAB) Trading Down 8.5% - Here's Why

Key Points

• Astera Labs' shares fell by 8.5% during Friday's trading session, closing at $206.21 after previously trading as low as $205.82, with increased trading volume compared to average levels.
• The stock has received mixed analyst ratings, with price targets ranging from $120.00 to $275.00, leading to a consensus rating of "Moderate Buy" and an average price target of $159.83.
• In a strong quarterly performance, Astera Labs reported $0.44 EPS, significantly beating the consensus estimate of $0.33, along with a revenue increase of 149.5% year-over-year to $191.93 million.

Shares of Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) dropped 8.5% during trading on Friday . The stock traded as low as $205.82 and last traded at $206.21. Approximately 6,837,090 shares changed hands during trading, an increase of 33% from the average daily volume of 5,139,943 shares. The stock had previously closed at $225.43.

Wall Street Analyst Weigh In

ALAB has been the subject of a number of research reports. Evercore ISI raised their price target on shares of Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a report on Wednesday, August 6th. Citigroup lifted their price objective on shares of Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. Stifel Nicolaus set a $145.00 price objective on shares of Astera Labs and gave the company a "buy" rating in a report on Monday, August 4th. 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 research note on Tuesday, July 22nd. Finally, Susquehanna lifted their price target on Astera Labs from $80.00 to $125.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Fifteen analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, Astera Labs presently has an average rating of "Moderate Buy" and a consensus price target of $159.83.

Astera Labs Price Performance

The firm has a market capitalization of $34.28 billion, a PE ratio of 368.23, a P/E/G ratio of 5.47 and a beta of 1.43. The company's fifty day simple moving average is $197.22 and its 200 day simple moving average is $123.25.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.33 by $0.11. The business had revenue of $191.93 million for the quarter, compared to the consensus estimate of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The company's revenue was up 149.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.13 earnings per share. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. On average, analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Transactions at Astera Labs

In other Astera Labs news, COO Sanjay Gajendra sold 91,441 shares of the stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $183.51, for a total value of $16,780,337.91. Following the sale, the chief operating officer directly owned 2,170,877 shares in the company, valued at $398,377,638.27. This represents a 4.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel Philip Mazzara sold 10,000 shares of the stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $192.16, for a total value of $1,921,600.00. Following the completion of the sale, the general counsel owned 151,573 shares in the company, valued at $29,126,267.68. This trade represents a 6.19% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,308,772 shares of company stock valued at $214,482,678. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in shares of Astera Labs by 29.6% during the 2nd quarter. Vanguard Group Inc. now owns 12,049,223 shares of the company's stock valued at $1,089,491,000 after buying an additional 2,751,747 shares in the last quarter. Alliancebernstein L.P. raised its stake in shares of Astera Labs by 114.2% during the first quarter. Alliancebernstein L.P. now owns 8,401,019 shares of the company's stock worth $501,289,000 after acquiring an additional 4,478,741 shares in the last quarter. Atreides Management LP raised its stake in shares of Astera Labs by 153.3% during the first quarter. Atreides Management LP now owns 4,652,264 shares of the company's stock worth $277,601,000 after acquiring an additional 2,815,614 shares in the last quarter. State Street Corp raised its stake in shares of Astera Labs by 39.3% during the second quarter. State Street Corp now owns 2,143,459 shares of the company's stock worth $193,812,000 after acquiring an additional 604,363 shares in the last quarter. Finally, Fred Alger Management LLC raised its position in Astera Labs by 13.0% in the 1st quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company's stock worth $93,087,000 after purchasing an additional 179,638 shares during the period. 60.47% of the stock is owned by hedge funds and other 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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