Astera Labs (NASDAQ:ALAB) Trading Up 3.4% - What's Next?

Key Points

• Astera Labs (NASDAQ:ALAB) shares increased by 3.4% on Wednesday, reaching a last trading price of $219.36 despite a 31% decline in trading volume compared to the average.
• Bank of America and TD Cowen have initiated coverage with target prices of $230.00 and $200.00, respectively, while Zacks downgraded the stock to a "hold" rating.
• Astera Labs reported a significant revenue increase of 149.5% year-over-year, with earnings per share of $0.44 for the last quarter, surpassing analysts' expectations.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) shares shot up 3.4% during trading on Wednesday . The company traded as high as $219.68 and last traded at $219.36. 3,527,752 shares were traded during trading, a decline of 31% from the average session volume of 5,129,065 shares. The stock had previously closed at $212.10.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ALAB. Bank of America initiated coverage on Astera Labs in a research report on Friday, October 3rd. They set a "neutral" rating and a $230.00 target price for the company. Evercore ISI lifted their price objective on Astera Labs from $104.00 to $215.00 and gave the company an "outperform" rating in a report on Wednesday, August 6th. Zacks Research downgraded shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a report on Monday. TD Cowen started coverage on shares of Astera Labs in a report on Wednesday, October 1st. They set a "hold" rating and a $200.00 price target for the company. Finally, Wall Street Zen downgraded shares of Astera Labs from a "buy" rating to a "hold" rating in a 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, Astera Labs presently has an average rating of "Moderate Buy" and an average price target of $159.83.

Astera Labs Stock Up 3.4%

The stock has a fifty day moving average of $193.63 and a 200-day moving average of $121.53. The firm has a market capitalization of $36.46 billion, a P/E ratio of 391.71, a PEG ratio of 5.50 and a beta of 1.43.

Astera Labs (NASDAQ:ALAB - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.33 by $0.11. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The company had revenue of $191.93 million during the quarter, compared to the consensus estimate of $172.46 million. During the same period in the previous year, the firm posted $0.13 earnings per share. The company's revenue was up 149.5% on a year-over-year basis. 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 Activity at Astera Labs

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $173.27, for a total transaction of $31,708,410.00. Following the completion of the sale, the director directly owned 385,863 shares of the company's stock, valued at approximately $66,858,482.01. The trade was a 32.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Michael Truett Tate sold 100,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $191.19, for a total value of $19,119,000.00. Following the sale, the chief financial officer directly owned 401,496 shares of the company's stock, valued at $76,762,020.24. This represents a 19.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,320,054 shares of company stock worth $215,638,632. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

A number of institutional investors and hedge funds have recently modified their holdings of the business. Teamwork Financial Advisors LLC raised its stake in shares of Astera Labs by 142.1% during the third quarter. Teamwork Financial Advisors LLC now owns 6,041 shares of the company's stock worth $1,183,000 after buying an additional 3,546 shares during the last quarter. Wedmont Private Capital bought a new stake in shares of Astera Labs during the 3rd quarter valued at $327,000. ST Germain D J Co. Inc. bought a new stake in Astera Labs in the third quarter valued at about $188,000. Salem Investment Counselors Inc. increased its holdings in Astera Labs by 4.5% in the third quarter. Salem Investment Counselors Inc. now owns 183,728 shares of the company's stock valued at $35,974,000 after purchasing an additional 7,884 shares during the last quarter. Finally, Union Bancaire Privee UBP SA bought a new stake in Astera Labs in the third quarter valued at about $7,247,000. 60.47% of the stock is owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.