Astera Labs (NASDAQ:ALAB) Trading Up 2.8% - Should You Buy?

Key Points

• Astera Labs' stock price increased by 2.8%, reaching $225.43, with trading volume declining by 10% from the average daily volume.
• Analysts have mixed ratings on Astera Labs; Needham & Company raised its price target to $170.00 and assigned a "buy" rating, while Zacks Research downgraded it to "hold."
• The company reported a revenue increase of 149.5% year-over-year, with earnings per share of $0.44, exceeding expectations by $0.11.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price was up 2.8% during trading on Thursday . The company traded as high as $229.75 and last traded at $225.43. Approximately 4,629,610 shares changed hands during trading, a decline of 10% from the average daily volume of 5,128,672 shares. The stock had previously closed at $219.36.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on ALAB shares. Needham & Company LLC raised their price objective on shares of Astera Labs from $100.00 to $170.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Astera Labs in a research report on Wednesday. TD Cowen initiated coverage on shares of Astera Labs in a research report on Wednesday, October 1st. They set a "hold" rating and a $200.00 target price for the company. Zacks Research cut shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a research report on Monday. Finally, Wall Street Zen cut shares of Astera Labs from a "buy" rating to a "hold" rating in a research report on Friday, October 3rd. Fifteen research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Astera Labs currently has an average rating of "Moderate Buy" and an average price target of $159.83.

Astera Labs Trading Up 2.8%

The company has a market cap of $37.47 billion, a P/E ratio of 402.55, a price-to-earnings-growth ratio of 5.47 and a beta of 1.43. The firm's 50 day moving average price is $197.22 and its 200-day moving average price is $123.25.

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, beating the consensus estimate of $0.33 by $0.11. The company had revenue of $191.93 million for 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%. The company's revenue for the quarter was up 149.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. Analysts predict that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Astera Labs

In related news, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $173.27, for a total transaction of $31,708,410.00. Following the completion of the transaction, the director owned 385,863 shares in the company, valued at approximately $66,858,482.01. The trade was a 32.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Michael Truett Tate sold 100,000 shares of the business's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $171.38, for a total transaction of $17,138,000.00. Following the transaction, the chief financial officer owned 518,996 shares of the company's stock, valued at approximately $88,945,534.48. This represents a 16.16% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,308,772 shares of company stock worth $214,482,678 over the last quarter. Company insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

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