Astera Labs (NASDAQ:ALAB) Trading Up 3.4% - Here's Why

Key Points

• Astera Labs shares rose by 3.4% during mid-day trading, reaching a last traded price of $180.03, despite a significant decline in trading volume.
• Analysts have been bullish on Astera Labs, with Evercore ISI raising its price target from $104 to $215 and a consensus recommendation of "Moderate Buy."
• The company reported a 149.5% year-over-year increase in revenue for the last quarter, achieving $191.93 million, and exceeding analyst expectations.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) shares were up 3.4% during mid-day trading on Tuesday . The stock traded as high as $180.43 and last traded at $180.03. Approximately 601,474 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 4,939,030 shares. The stock had previously closed at $174.15.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Evercore ISI raised their price target on shares of Astera Labs from $104.00 to $215.00 and gave the company an "outperform" rating in a research note on Wednesday, August 6th. Wall Street Zen upgraded shares of Astera Labs from a "hold" rating to a "buy" rating in a research note on Saturday, August 16th. Roth Capital set a $100.00 price target on shares of Astera Labs and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Jefferies Financial Group upped their target price on Astera Labs from $95.00 to $130.00 and gave the company a "buy" rating in a report on Tuesday, July 22nd. Finally, Zacks Research upgraded Astera Labs to a "strong-buy" rating in a research note on Tuesday, August 12th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $129.13.

Astera Labs Stock Performance

The stock's 50 day simple moving average is $125.55 and its 200 day simple moving average is $93.25. The firm has a market capitalization of $29.71 billion, a P/E ratio of 319.53, a P/E/G ratio of 4.54 and a beta of 1.39.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.33 by $0.11. The firm 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 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. On average, analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Activity at Astera Labs

In related news, CEO Jitendra Mohan sold 152,517 shares of the business's stock in a transaction 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 transaction, the chief executive officer directly owned 450,001 shares in the company, valued at $76,648,670.33. The trade was a 25.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Michael Truett Tate sold 500,000 shares of the company's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $90.23, for a total transaction of $45,115,000.00. Following the sale, the chief financial officer directly owned 618,996 shares of the company's stock, valued at $55,852,009.08. The trade was a 44.68% decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,220,416 shares of company stock worth $281,852,731 over the last three months. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

A number of hedge funds and other institutional investors have recently modified their holdings of ALAB. Oliver Lagore Vanvalin Investment Group acquired a new stake in Astera Labs during the second quarter worth approximately $29,000. Bernard Wealth Management Corp. acquired a new stake in shares of Astera Labs in the second quarter worth $36,000. Clearstead Trust LLC boosted its stake in shares of Astera Labs by 46,100.0% in the second quarter. Clearstead Trust LLC now owns 462 shares of the company's stock valued at $42,000 after purchasing an additional 461 shares during the period. Advisors Asset Management Inc. boosted its stake in shares of Astera Labs by 68.6% in the second quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock valued at $43,000 after purchasing an additional 194 shares during the period. Finally, Manchester Capital Management LLC boosted its stake in shares of Astera Labs by 141.5% in the second quarter. Manchester Capital Management LLC now owns 483 shares of the company's stock valued at $44,000 after purchasing an additional 283 shares during the period. 60.47% of the stock is currently owned by institutional investors and hedge funds.

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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