Astera Labs Target of Unusually High Options Trading (NASDAQ:ALAB)

Key Points

• Unusually high options trading: Traders bought 39,591 call options on Astera Labs on Tuesday, about 33% above the average call volume of 29,801.
• Sharp intraday move and heavy volume: The stock fell $22.05 to $143.15 on volume of 16.6 million shares (vs. a 5.36M average), with a market cap of $24.18B and a P/E of ~129.
• Insider selling and mixed sentiment: CEO and COO each sold 90,459 shares (part of 403,936 shares sold by insiders this quarter), insiders own 12.5% while institutions own 60.47%, and analysts show a consensus "Moderate Buy" with a $187.06 target.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) saw unusually large options trading on Tuesday. Stock traders bought 39,591 call options on the company. This is an increase of approximately 33% compared to the average volume of 29,801 call options.

Astera Labs Stock Performance

Astera Labs stock traded down $22.05 during midday trading on Tuesday, reaching $143.15. 16,603,509 shares of the company's stock were exchanged, compared to its average volume of 5,363,433. The stock's 50-day simple moving average is $174.51 and its 200 day simple moving average is $149.83. The firm has a market cap of $24.18 billion, a price-to-earnings ratio of 128.96, a P/E/G ratio of 2.94 and a beta of 1.52. Astera Labs has a 52 week low of $47.13 and a 52 week high of $262.90.

Insiders Place Their Bets

In related news, CEO Jitendra Mohan sold 90,459 shares of the business's stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $144.69, for a total value of $13,088,512.71. Following the completion of the transaction, the chief executive officer directly owned 2,080,418 shares in the company, valued at approximately $301,015,680.42. The trade was a 4.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Sanjay Gajendra sold 90,459 shares of Astera Labs stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $144.69, for a total transaction of $13,088,512.71. Following the completion of the transaction, the chief operating officer directly owned 1,599,750 shares in the company, valued at approximately $231,467,827.50. The trade was a 5.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 403,936 shares of company stock worth $58,920,200. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Astera Labs

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Astera Labs by 14.1% in the third quarter. Vanguard Group Inc. now owns 13,743,141 shares of the company's stock valued at $2,690,907,000 after purchasing an additional 1,693,918 shares during the last quarter. Alliancebernstein L.P. boosted its holdings in shares of 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 buying an additional 4,478,741 shares during the period. Atreides Management LP grew its stake in Astera Labs by 153.3% in the 1st 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 during the last quarter. State Street Corp raised its holdings in Astera Labs by 9.1% in the 3rd quarter. State Street Corp now owns 2,339,451 shares of the company's stock valued at $458,065,000 after acquiring an additional 195,992 shares during the period. Finally, Fred Alger Management LLC raised its holdings in Astera Labs by 13.0% in the 1st quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company's stock valued at $93,087,000 after acquiring an additional 179,638 shares during the period. Institutional investors own 60.47% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on ALAB shares. Northland Capmk upgraded Astera Labs from a "hold" rating to a "strong-buy" rating in a report on Monday, November 17th. Morgan Stanley upped their price target on Astera Labs from $200.00 to $210.00 and gave the stock an "overweight" rating in a research report on Wednesday, November 5th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Astera Labs from $160.00 to $200.00 and gave the company a "buy" rating in a report on Tuesday, September 2nd. Raymond James Financial initiated coverage on shares of Astera Labs in a report on Friday, November 21st. They set a "hold" rating for the company. Finally, Cowen reiterated a "hold" rating on shares of Astera Labs in a research note on Wednesday, November 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $187.06.

About Astera Labs

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 reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.