Sheets Smith Wealth Management Makes New Investment in Astera Labs, Inc. $ALAB

Key Points

• Sheets Smith Wealth Management acquired a new stake in Astera Labs, purchasing 5,316 shares worth approximately $481,000 in the second quarter of 2023.
• Analyst ratings for Astera Labs have improved, with Deutsche Bank raising its target price from $160 to $200 and several others boosting their projections, indicating a general trend of increased investor confidence in the stock.
• Astera Labs reported a significant 149.5% year-over-year increase in revenue for the latest quarter, with earnings per share hitting $0.44, exceeding expectations.

Sheets Smith Wealth Management bought a new stake in Astera Labs, Inc. (NASDAQ:ALAB - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 5,316 shares of the company's stock, valued at approximately $481,000.

A number of other large investors have also recently made changes to their positions in ALAB. Alliancebernstein L.P. raised its position in Astera Labs by 114.2% in the 1st quarter. Alliancebernstein L.P. now owns 8,401,019 shares of the company's stock worth $501,289,000 after purchasing an additional 4,478,741 shares during the period. Atreides Management LP raised its holdings in shares of Astera Labs by 153.3% in the first quarter. Atreides Management LP now owns 4,652,264 shares of the company's stock worth $277,601,000 after buying an additional 2,815,614 shares during the period. Bank of Nova Scotia lifted its stake in shares of Astera Labs by 3,742.2% during the 1st quarter. Bank of Nova Scotia now owns 964,400 shares of the company's stock worth $57,546,000 after acquiring an additional 939,300 shares during the last quarter. Jump Financial LLC purchased a new position in Astera Labs during the 1st quarter valued at $32,998,000. Finally, Pacer Advisors Inc. bought a new position in Astera Labs in the 1st quarter valued at $29,935,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft lifted their target price on Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, September 2nd. Needham & Company LLC boosted their price objective on shares of Astera Labs from $100.00 to $170.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Citigroup raised their target price on shares of Astera Labs from $160.00 to $275.00 and gave the stock a "buy" rating in a research report on Wednesday, September 17th. Northland Securities lowered Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price target for the company. in a report on Tuesday, July 22nd. Finally, CICC Research began coverage on Astera Labs in a report on Friday, August 29th. They set an "outperform" rating and a $190.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, Astera Labs currently has a consensus rating of "Moderate Buy" and an average target price of $152.94.

Astera Labs Trading Down 10.8%

Shares of ALAB opened at $205.27 on Thursday. The firm has a market cap of $34.12 billion, a PE ratio of 366.55, a P/E/G ratio of 5.84 and a beta of 1.48. The stock has a fifty day moving average price of $177.91 and a 200-day moving average price of $112.78. Astera Labs, Inc. has a 12 month low of $47.13 and a 12 month high of $262.90.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.11. Astera Labs had a net margin of 16.54% and a return on equity of 9.53%. The firm had revenue of $191.93 million for the quarter, compared to the consensus estimate of $172.46 million. During the same quarter in the prior year, the company posted $0.13 earnings per share. The company's revenue for the quarter was up 149.5% compared to the same quarter last year. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, research analysts forecast that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insider Transactions at Astera Labs

In other news, CFO Michael Truett Tate sold 100,000 shares of the firm's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $171.38, for a total value of $17,138,000.00. Following the completion of the transaction, the chief financial officer directly owned 518,996 shares in the company, valued at $88,945,534.48. This trade represents a 16.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Jitendra Mohan sold 152,517 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $170.33, for a total transaction of $25,978,220.61. Following the transaction, the chief executive officer directly owned 450,001 shares of the company's stock, valued at $76,648,670.33. This represents a 25.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,576,027 shares of company stock valued at $239,177,011 over the last three months. Company insiders own 12.50% of the company's stock.

Astera Labs 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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