Astera Labs (NASDAQ:ALAB) Trading Up 10% - What's Next?

Key Points

• Astera Labs' stock price rose by 10% on Monday, reaching a high of $232.00 before closing at $220.81, with trading volume significantly increasing by 67% compared to the average.
• Analysts have shown mixed sentiments; Jefferies Financial Group upgraded the stock to a "buy" with a target price of $130, while Wall Street Zen downgraded it from "buy" to "hold."
• The company reported a 149.5% increase in year-over-year revenue, posting $191.93 million during the last quarter and exceeding analysts' estimates.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s share price traded up 10% during mid-day trading on Monday . The stock traded as high as $232.00 and last traded at $220.81. 8,576,151 shares changed hands during mid-day trading, an increase of 67% from the average session volume of 5,142,568 shares. The stock had previously closed at $200.74.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on ALAB. Wall Street Zen cut Astera Labs from a "buy" rating to a "hold" rating in a research note on Friday. Jefferies Financial Group increased their price objective on shares of Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Northland Securities cut shares of Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective on the stock. in a research report on Tuesday, July 22nd. TD Cowen began coverage on Astera Labs in a report on Wednesday, October 1st. They set a "hold" rating and a $200.00 target price for the company. Finally, Bank of America began coverage on Astera Labs in a report on Friday. They issued a "neutral" rating and a $230.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $159.83.

Astera Labs Stock Performance

The stock has a fifty day simple moving average of $191.76 and a two-hundred day simple moving average of $120.89. The stock has a market cap of $36.70 billion, a price-to-earnings ratio of 394.30, a P/E/G ratio of 5.09 and a beta of 1.43.

Astera Labs (NASDAQ:ALAB - Get Free Report) last announced 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 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 the consensus estimate of $172.46 million. During the same period in the prior year, the company earned $0.13 EPS. Astera Labs's revenue for the quarter was up 149.5% on a year-over-year basis. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. Equities analysts expect that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Jack R. Lazar sold 22,500 shares of the company'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 completion of the transaction, the director directly owned 97,351 shares in the company, valued at approximately $17,369,365.42. This represents a 18.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jitendra Mohan sold 91,441 shares of the business's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $183.51, for a total value of $16,780,337.91. Following the sale, the chief executive officer owned 2,170,877 shares in the company, 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 1,492,036 shares of company stock valued at $232,607,552. 12.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC bought a new stake in Astera Labs during the 4th quarter worth approximately $475,000. Rhumbline Advisers lifted its holdings in shares of Astera Labs by 4.4% during the first quarter. Rhumbline Advisers now owns 104,345 shares of the company's stock worth $6,226,000 after purchasing an additional 4,396 shares during the period. Farther Finance Advisors LLC grew its stake in shares of Astera Labs by 198.6% in the first quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock worth $80,000 after purchasing an additional 854 shares during the last quarter. Wealthcare Advisory Partners LLC increased its holdings in Astera Labs by 1.1% in the first quarter. Wealthcare Advisory Partners LLC now owns 28,939 shares of the company's stock valued at $1,727,000 after purchasing an additional 320 shares during the period. Finally, GAMMA Investing LLC raised its position in Astera Labs by 55.7% during the 1st quarter. GAMMA Investing LLC now owns 794 shares of the company's stock worth $47,000 after purchasing an additional 284 shares during the last quarter. 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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