Amazon Com Inc. Buys Shares of 277,777 Astera Labs, Inc. $ALAB

Key Points

• Amazon initiated a major position in Astera Labs, purchasing 277,777 shares worth approximately $134.2 million. The stake represents about 3% of Amazon’s portfolio and 0.16% of Astera Labs’ outstanding shares.
• Astera Labs reported strong quarterly results, with revenue rising 104.5% year over year to $392.4 million and EPS of $0.80, beating analyst estimates of $0.69. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $325.25.
• Institutional ownership stands at 60.47%, while insiders have sold 940,716 shares valued at roughly $292.4 million over the past three months. ALAB opened at $321.61 and trades at a high valuation, with a P/E ratio of 159.21.

Amazon Com Inc. bought a new position in Astera Labs, Inc. (NASDAQ:ALAB - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 277,777 shares of the company's stock, valued at approximately $134,172,000. Astera Labs comprises about 3.0% of Amazon Com Inc.'s investment portfolio, making the stock its 4th largest holding. Amazon Com Inc. owned about 0.16% of Astera Labs at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in ALAB. Reflection Asset Management bought a new position in shares of Astera Labs during the 4th quarter valued at $25,000. Trifecta Capital Advisors LLC bought a new stake in Astera Labs in the second quarter worth $79,000. CX Institutional boosted its holdings in Astera Labs by 1,330.8% in the second quarter. CX Institutional now owns 186 shares of the company's stock worth $90,000 after purchasing an additional 173 shares in the last quarter. Smartleaf Asset Management LLC boosted its holdings in Astera Labs by 422.2% in the fourth quarter. Smartleaf Asset Management LLC now owns 188 shares of the company's stock worth $32,000 after purchasing an additional 152 shares in the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA acquired a new position in Astera Labs during the fourth quarter worth $33,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

ALAB has been the topic of several recent research reports. Zacks Research upgraded Astera Labs from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. increased their price objective on Astera Labs from $205.00 to $280.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Stifel Nicolaus raised their price objective on Astera Labs from $260.00 to $460.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. UBS Group restated a "neutral" rating and issued a $425.00 target price on shares of Astera Labs in a report on Wednesday, August 5th. Finally, Evercore restated an "outperform" rating and issued a $297.00 target price on shares of Astera Labs in a report on Tuesday, May 19th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, Astera Labs currently has an average rating of "Moderate Buy" and a consensus target price of $325.25.

Astera Labs Stock Performance

NASDAQ ALAB opened at $321.61 on Monday. Astera Labs, Inc. has a twelve month low of $97.89 and a twelve month high of $499.48. The stock has a market capitalization of $55.80 billion, a PE ratio of 159.21 and a beta of 3.84. The stock has a 50-day simple moving average of $358.00 and a 200 day simple moving average of $240.74.

Astera Labs (NASDAQ:ALAB - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.11. Astera Labs had a return on equity of 19.24% and a net margin of 30.74%.The firm had revenue of $392.40 million for the quarter, compared to analyst estimates of $360.85 million. During the same quarter last year, the firm posted $0.44 EPS. The company's revenue was up 104.5% on a year-over-year basis. Astera Labs has set its Q3 2026 guidance at 1.160-1.210 EPS. As a group, equities research analysts forecast that Astera Labs, Inc. will post 2.7 EPS for the current fiscal year.

Insider Buying and Selling at Astera Labs

In other Astera Labs news, CEO Jitendra Mohan sold 28,737 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $249.62, for a total value of $7,173,329.94. Following the completion of the sale, the chief executive officer directly owned 3,789,232 shares of the company's stock, valued at $945,868,091.84. This represents a 0.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Sanjay Gajendra sold 400,000 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $290.30, for a total transaction of $116,120,000.00. Following the completion of the sale, the chief operating officer owned 5,064,213 shares in the company, valued at $1,470,141,033.90. This represents a 7.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 940,716 shares of company stock valued at $292,425,777 in the last three months. 10.40% of the stock is owned by insiders.

Astera Labs Company Profile

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company's product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.

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