Astera Labs (NASDAQ:ALAB) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley has raised its target price for Astera Labs (NASDAQ:ALAB) from $99.00 to $125.00, maintaining an "overweight" rating, indicating a potential upside of 5.57%.
• Astera Labs recently reported earnings of $0.33 per share, surpassing expectations, with revenues up 144.1% compared to the same quarter last year.
• Insider selling has been notable, with CFO Michael Truett Tate selling 500,000 shares, significantly reducing his ownership by 44.68%.

Astera Labs (NASDAQ:ALAB - Free Report) had its price objective raised by Morgan Stanley from $99.00 to $125.00 in a research note published on Wednesday morning,Benzinga reports. Morgan Stanley currently has an overweight rating on the stock.

A number of other analysts also recently issued reports on ALAB. Roth Capital set a $100.00 price target on Astera Labs and gave the stock a "buy" rating in a research report on Wednesday, May 7th. Susquehanna initiated coverage on Astera Labs in a research report on Friday, May 16th. They issued a "neutral" rating and a $80.00 price target for the company. William Blair assumed coverage on Astera Labs in a research report on Thursday, May 22nd. They issued an "outperform" rating for the company. Northland Securities lowered Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 target price on the stock. in a research note on Tuesday, July 22nd. Finally, Evercore ISI increased their target price on Astera Labs from $87.00 to $104.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 21st. Four investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $104.40.

Astera Labs Stock Performance

ALAB traded down $5.63 during trading on Wednesday, reaching $131.10. 6,935,750 shares of the company traded hands, compared to its average volume of 5,661,288. Astera Labs has a 12-month low of $36.22 and a 12-month high of $147.39. The firm has a fifty day simple moving average of $99.49 and a 200 day simple moving average of $85.75. The company has a market cap of $21.62 billion, a P/E ratio of 595.94, a PEG ratio of 6.15 and a beta of 1.39.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its earnings results on Tuesday, May 6th. The company reported $0.33 EPS for the quarter, beating analysts' consensus estimates of $0.28 by $0.05. The firm had revenue of $159.44 million during the quarter, compared to the consensus estimate of $151.55 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 144.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.10 EPS. As a group, sell-side analysts expect that Astera Labs will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Astera Labs

In other Astera Labs news, CEO Jitendra Mohan sold 128,250 shares of Astera Labs stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $90.02, for a total value of $11,545,065.00. Following the transaction, the chief executive officer 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Michael Truett Tate sold 500,000 shares of Astera Labs stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $90.23, for a total value of $45,115,000.00. Following the completion of the transaction, the chief financial officer owned 618,996 shares in the company, valued at $55,852,009.08. This trade represents a 44.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,181,759 shares of company stock worth $200,883,431 over the last quarter.

Hedge Funds Weigh In On Astera Labs

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Oliver Lagore Vanvalin Investment Group purchased a new stake in shares of Astera Labs during the second quarter worth about $29,000. Bernard Wealth Management Corp. purchased a new stake in shares of Astera Labs during the second quarter worth about $36,000. NewEdge Advisors LLC purchased a new stake in shares of Astera Labs during the fourth quarter worth about $63,000. National Bank of Canada FI grew its stake in shares of Astera Labs by 121.7% during the fourth quarter. National Bank of Canada FI now owns 541 shares of the company's stock worth $72,000 after acquiring an additional 297 shares during the last quarter. Finally, Banque Transatlantique SA purchased a new stake in shares of Astera Labs during the fourth quarter worth about $86,000. Hedge funds and other institutional investors 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.