Morgan Stanley Increases Astera Labs (NASDAQ:ALAB) Price Target to $155.00

Key Points

• Morgan Stanley has raised the price target for Astera Labs (ALAB) from $125.00 to $155.00, maintaining an "overweight" rating on the stock, which implies a potential downside of 11.61% from its current pricing.
• Astera Labs' share price surged to $175.37 during trading, with a market capitalization of approximately $28.92 billion and earnings per share (EPS) reported at $0.44 for the last quarter, exceeding analyst expectations.
• Insider selling has been observed, with significant transactions including a 17.93% decrease in holdings by insider Sanjay Gajendra, who sold 165,000 shares valued at over $11 million.

Astera Labs (NASDAQ:ALAB - Get Free Report) had its target price hoisted by Morgan Stanley from $125.00 to $155.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Morgan Stanley's target price points to a potential downside of 11.61% from the company's current price.

A number of other brokerages have also commented on ALAB. Northland Capmk lowered Astera Labs from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 22nd. Roth Capital set a $100.00 price target on Astera Labs and gave the company a "buy" rating in a report on Wednesday, May 7th. Barclays raised their target price on Astera Labs from $70.00 to $75.00 and gave the company an "overweight" rating in a research note on Wednesday, May 7th. Jefferies Financial Group raised their target price on Astera Labs from $95.00 to $130.00 and gave the company a "buy" rating in a research note on Tuesday, July 22nd. Finally, Citigroup decreased their target price on Astera Labs from $120.00 to $100.00 and set a "buy" rating for the company in a research note on Monday, April 14th. Four research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $120.80.

Astera Labs Price Performance

Shares of ALAB traded up $39.83 during trading hours on Wednesday, reaching $175.37. 14,232,356 shares of the company's stock traded hands, compared to its average volume of 4,911,777. The firm has a market capitalization of $28.92 billion, a price-to-earnings ratio of 798.57, a P/E/G ratio of 6.47 and a beta of 1.39. Astera Labs has a twelve month low of $36.22 and a twelve month high of $183.62. The business's fifty day simple moving average is $101.12 and its two-hundred day simple moving average is $86.12.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.11. The company had revenue of $191.93 million for the quarter, compared to analyst estimates of $172.46 million. Astera Labs had a return on equity of 2.57% and a net margin of 8.44%. The company's quarterly revenue was up 149.5% compared to the same quarter last year. During the same period last year, the company earned $0.13 earnings per share. On average, equities research analysts expect that Astera Labs will post 0.34 EPS for the current year.

Insider Activity at Astera Labs

In related news, insider Sanjay Gajendra sold 165,000 shares of the firm's stock in a transaction that occurred on Thursday, May 8th. The stock was sold at an average price of $71.76, for a total value of $11,840,400.00. Following the transaction, the insider directly owned 755,000 shares of the company's stock, valued at approximately $54,178,800. This trade represents a 17.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Jitendra Mohan sold 128,250 shares of the firm's stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $90.02, for a total value of $11,545,065.00. Following the completion of the transaction, the chief executive officer directly owned 541,125 shares in the company, valued at $48,712,072.50. The trade was a 19.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,181,759 shares of company stock valued at $200,883,431.

Institutional Trading of Astera Labs

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ALAB. Oliver Lagore Vanvalin Investment Group acquired a new stake in Astera Labs in the 2nd quarter valued at approximately $29,000. Bernard Wealth Management Corp. acquired a new stake in Astera Labs in the 2nd quarter valued at approximately $36,000. Sound Income Strategies LLC grew its holdings in Astera Labs by 34.7% in the 1st quarter. Sound Income Strategies LLC now owns 792 shares of the company's stock valued at $47,000 after buying an additional 204 shares during the last quarter. GAMMA Investing LLC grew its holdings in Astera Labs by 55.7% in the 1st quarter. GAMMA Investing LLC now owns 794 shares of the company's stock valued at $47,000 after buying an additional 284 shares during the last quarter. Finally, Harbour Investments Inc. grew its holdings in Astera Labs by 351.7% in the 1st quarter. Harbour Investments Inc. now owns 795 shares of the company's stock valued at $47,000 after buying an additional 619 shares during the last quarter. Institutional investors and hedge funds own 60.47% of the company's stock.

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.

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