Bank of America Corp DE Takes $1.06 Billion Position in Astera Labs, Inc. $ALAB

Key Points

• Bank of America acquired a major Astera Labs stake, purchasing 2.20 million shares worth approximately $1.06 billion, or about 1.27% of the company. Institutional investors collectively own 60.47% of ALAB.
• Astera Labs reported strong quarterly results, with revenue rising 104.5% year over year to $392.4 million and EPS of $0.80, exceeding analysts’ $0.69 estimate. Despite the performance, the stock was down 11.7% and trading at $257.04.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $348.33, while insiders have sold nearly $210 million of stock over the past 90 days, including significant sales by the CEO and a director.

Bank of America Corp DE bought a new stake in Astera Labs, Inc. (NASDAQ:ALAB - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 2,198,235 shares of the company's stock, valued at approximately $1,061,791,000. Bank of America Corp DE owned about 1.27% of Astera Labs at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Glenmede Trust Co. NA grew its stake in Astera Labs by 2.7% during the 1st quarter. Glenmede Trust Co. NA now owns 1,909 shares of the company's stock worth $209,000 after buying an additional 51 shares during the last quarter. Keating Financial Advisory Services Inc. purchased a new position in shares of Astera Labs during the second quarter worth approximately $25,000. Lido Advisors LLC increased its holdings in shares of Astera Labs by 0.5% in the 4th quarter. Lido Advisors LLC now owns 12,297 shares of the company's stock valued at $2,046,000 after acquiring an additional 57 shares during the period. Goldstein Advisors LLC increased its holdings in shares of Astera Labs by 5.8% in the 4th quarter. Goldstein Advisors LLC now owns 1,611 shares of the company's stock valued at $268,000 after acquiring an additional 88 shares during the period. Finally, Johnson Financial Group Inc. purchased a new stake in Astera Labs in the 2nd quarter valued at $43,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

Astera Labs Stock Down 11.7%

Shares of NASDAQ:ALAB opened at $257.04 on Tuesday. The company has a market cap of $44.59 billion, a P/E ratio of 127.25 and a beta of 3.77. The business has a fifty day simple moving average of $313.08 and a 200-day simple moving average of $262.00. Astera Labs, Inc. has a 52 week low of $97.89 and a 52 week high of $499.48.

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, topping the consensus estimate of $0.69 by $0.11. Astera Labs had a net margin of 30.74% and a return on equity of 19.24%. The business had revenue of $392.40 million for the quarter, compared to analysts' expectations of $360.85 million. During the same period last year, the company earned $0.44 earnings per share. The company's quarterly 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. Sell-side analysts expect that Astera Labs, Inc. will post 2.7 earnings per share for the current fiscal year.

Analyst Ratings Changes

ALAB has been the subject of a number of research reports. Northland Securities raised shares of Astera Labs from a "market perform" rating to an "outperform" rating and set a $350.00 target price for the company in a report on Monday, August 17th. TD Cowen cut their price objective on Astera Labs from $425.00 to $375.00 and set a "hold" rating for the company in a research report on Wednesday, August 5th. Susquehanna raised their target price on Astera Labs from $230.00 to $275.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Morgan Stanley boosted their target price on shares of Astera Labs to $335.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Finally, Barclays upped their price target on shares of Astera Labs from $200.00 to $325.00 and gave the stock an "equal weight" rating in a research note on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, Astera Labs presently has a consensus rating of "Moderate Buy" and an average price target of $348.33.

Insiders Place Their Bets

In other Astera Labs news, Director Stefan A. Dyckerhoff sold 8,994 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $311.83, for a total transaction of $2,804,599.02. Following the completion of the sale, the director directly owned 3,970 shares in the company, valued at $1,237,965.10. This represents a 69.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jitendra Mohan sold 90,630 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $340.35, for a total transaction of $30,845,920.50. Following the sale, the chief executive officer directly owned 1,266,665 shares of the company's stock, valued at approximately $431,109,432.75. This trade represents a 6.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 592,244 shares of company stock worth $209,729,973. Corporate insiders own 10.40% of the company's stock.

Astera Labs Profile

Astera Labs, Inc is a fabless semiconductor company that develops connectivity solutions for cloud and artificial intelligence infrastructure. Its products are designed to help data-center operators, system manufacturers and other customers connect, expand and manage the high-speed components used in servers, storage systems and networking platforms.

The company's portfolio includes PCI Express (PCIe) retimers and fabric switches, Compute Express Link (CXL) memory connectivity products, and Ethernet connectivity solutions.

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