Wealth Effects LLC Invests $1.62 Million in Astera Labs, Inc. $ALAB

Key Points

• Wealth Effects LLC opened a new position in Astera Labs during the first quarter, buying 14,765 shares valued at about $1.62 million.
• Astera Labs reported a strong quarter, with EPS of $0.61 beating estimates and revenue of $308.36 million, up 93.5% year over year.
• Analysts remain generally positive on the stock despite mixed views, with a consensus rating of Moderate Buy and a consensus target price of $254.75, while several firms recently raised their price targets.

Wealth Effects LLC bought a new position in shares of Astera Labs, Inc. (NASDAQ:ALAB - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 14,765 shares of the company's stock, valued at approximately $1,618,000.

Several other institutional investors also recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in Astera Labs by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 13,827,506 shares of the company's stock worth $2,300,344,000 after purchasing an additional 84,365 shares in the last quarter. State Street Corp grew its stake in shares of Astera Labs by 32.5% during the 4th quarter. State Street Corp now owns 3,099,809 shares of the company's stock worth $515,684,000 after purchasing an additional 760,358 shares during the period. Geode Capital Management LLC increased its holdings in shares of Astera Labs by 4.5% during the 4th quarter. Geode Capital Management LLC now owns 2,429,078 shares of the company's stock valued at $403,598,000 after purchasing an additional 104,935 shares in the last quarter. Fred Alger Management LLC increased its holdings in shares of Astera Labs by 25.5% during the 4th quarter. Fred Alger Management LLC now owns 1,934,688 shares of the company's stock valued at $321,855,000 after purchasing an additional 393,250 shares in the last quarter. Finally, Morgan Stanley lifted its stake in shares of Astera Labs by 33.0% in the 4th quarter. Morgan Stanley now owns 1,934,467 shares of the company's stock valued at $321,818,000 after purchasing an additional 480,009 shares during the period. 60.47% of the stock is currently owned by hedge funds and other institutional investors.

Astera Labs Stock Performance

Astera Labs stock opened at $391.74 on Friday. The company's fifty day moving average price is $289.20 and its 200 day moving average price is $196.09. Astera Labs, Inc. has a 1 year low of $85.85 and a 1 year high of $440.99. The stock has a market capitalization of $67.15 billion, a P/E ratio of 264.69, a P/E/G ratio of 4.57 and a beta of 3.95.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.61 earnings per share for the quarter, topping analysts' consensus estimates of $0.54 by $0.07. The company had revenue of $308.36 million during the quarter, compared to analysts' expectations of $292.19 million. Astera Labs had a net margin of 26.72% and a return on equity of 18.49%. The firm's revenue for the quarter was up 93.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.33 earnings per share. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. Sell-side analysts predict that Astera Labs, Inc. will post 1.84 EPS for the current year.

Analyst Upgrades and Downgrades

ALAB has been the topic of a number of recent analyst reports. Northland Securities downgraded shares of Astera Labs from an "outperform" rating to a "market perform" rating in a report on Tuesday, May 26th. Royal Bank Of Canada lifted their price objective on shares of Astera Labs from $250.00 to $270.00 and gave the company an "outperform" rating in a report on Wednesday, May 6th. Morgan Stanley upped their price objective on shares of Astera Labs from $210.00 to $240.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Stifel Nicolaus increased their target price on shares of Astera Labs from $260.00 to $460.00 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Bank of America raised their target price on Astera Labs from $240.00 to $450.00 and gave the company a "neutral" rating in a research report on Tuesday. Twelve analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $254.75.

Insider Buying and Selling at Astera Labs

In related news, Director Stefan A. Dyckerhoff sold 3,505 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $364.35, for a total transaction of $1,277,046.75. Following the completion of the transaction, the director owned 60,134 shares in the company, valued at $21,909,822.90. This represents a 5.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Philip Mazzara sold 796 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $291.03, for a total transaction of $231,659.88. Following the completion of the transaction, the general counsel directly owned 103,343 shares in the company, valued at $30,075,913.29. This represents a 0.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 2,161,942 shares of company stock valued at $460,115,294. Corporate insiders own 10.40% of the company's stock.

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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