Astera Labs (NASDAQ:ALAB) Trading Up 1.3% - Should You Buy?

Key Points

• Astera Labs (NASDAQ:ALAB) stock rose by 1.3% to $163.55, with trading volume significantly increasing by 17% above the daily average.
• Analysts have mixed views with a consensus rating of "Moderate Buy" and an average price target of $159.83, while recent reports from Jefferies and Susquehanna set targets at $130.00 and $125.00, respectively.
• The company reported a 149.5% year-over-year revenue increase in its latest quarterly earnings, achieving earnings per share of $0.44, exceeding expectations.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) was up 1.3% during mid-day trading on Thursday . The company traded as high as $167.41 and last traded at $163.55. Approximately 6,100,571 shares traded hands during mid-day trading, an increase of 17% from the average daily volume of 5,233,370 shares. The stock had previously closed at $161.46.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on ALAB shares. Bank of America started coverage on shares of Astera Labs in a research report on Friday, October 3rd. They issued a "neutral" rating and a $230.00 price target on the stock. Jefferies Financial Group boosted their price target 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. Susquehanna boosted their price target on shares of Astera Labs from $80.00 to $125.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Cowen began coverage on shares of Astera Labs in a research report on Tuesday, September 30th. They issued a "hold" rating on the stock. Finally, Wall Street Zen lowered shares of Astera Labs from a "buy" rating to a "hold" rating in a research note on Friday, October 3rd. Fifteen analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $159.83.

Astera Labs Stock Performance

The firm has a market cap of $27.19 billion, a P/E ratio of 292.05, a price-to-earnings-growth ratio of 4.03 and a beta of 1.43. The stock's 50 day simple moving average is $200.21 and its 200 day simple moving average is $126.46.

Astera Labs (NASDAQ:ALAB - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.11. The business had revenue of $191.93 million during the quarter, compared to analyst estimates of $172.46 million. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. Astera Labs's quarterly revenue was up 149.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, analysts forecast that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

Insider Buying and Selling at Astera Labs

In other Astera Labs news, Director Jack R. Lazar sold 22,500 shares of the business'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 sale, the director owned 97,351 shares in the company, valued at approximately $17,369,365.42. The trade was a 18.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Sanjay Gajendra sold 91,441 shares of the business'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 operating officer owned 2,170,877 shares of the company's stock, valued at $398,377,638.27. This trade represents a 4.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,228,269 shares of company stock worth $206,885,610 in the last ninety days. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Astera Labs by 29.6% during the 2nd quarter. Vanguard Group Inc. now owns 12,049,223 shares of the company's stock worth $1,089,491,000 after acquiring an additional 2,751,747 shares during the last quarter. Alliancebernstein L.P. boosted its holdings in Astera Labs by 114.2% during the 1st 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 during the last quarter. Atreides Management LP boosted its holdings in Astera Labs by 153.3% during the 1st 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 during the last quarter. State Street Corp boosted its holdings in Astera Labs by 39.3% during the 2nd 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 during the last quarter. Finally, Fred Alger Management LLC boosted its holdings in Astera Labs by 13.0% during the 1st quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company's stock worth $93,087,000 after acquiring an additional 179,638 shares during the last quarter. 60.47% of the stock is owned by hedge funds and other institutional investors.

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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