Astera Labs (NASDAQ:ALAB) Shares Down 1.4% - Here's What Happened

Key Points

• Astera Labs shares fell 1.4% to $227.79 in Thursday mid-day trading, with volume 35% below its average.
• The company beat quarterly estimates, reporting EPS of $1.32 versus $1.19 expected and revenue of $584.9 million versus $550.8 million; revenue grew 153.6% year over year.
• Analyst views were mixed, but the consensus remained Moderate Buy with a $320.85 price target. Insiders sold 408,558 shares worth about $126.1 million in the last quarter.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) traded down 1.4% during mid-day trading on Thursday. The company traded as low as $211.65 and last traded at $227.79. 3,364,644 shares changed hands during trading, a decline of 35% from the average daily volume of 5,145,822 shares. The stock had previously closed at $230.91.

Analyst Ratings Changes

Several research firms recently commented on ALAB. Citigroup lowered shares of Astera Labs from a "buy" rating to a "hold" rating in a research note on Friday, October 9th. Zacks Research downgraded shares of Astera Labs from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Northland Securities upgraded shares of Astera Labs from a "market perform" rating to an "outperform" rating and set a $315.00 target price for the company in a report on Wednesday, November 4th. Morgan Stanley boosted their price target on Astera Labs from $382.00 to $389.00 and gave the stock an "overweight" rating in a research report on Wednesday, November 4th. Finally, TD Cowen cut their price target on Astera Labs from $300.00 to $225.00 and set a "hold" rating on the stock in a research note on Wednesday, November 4th. Thirteen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Astera Labs currently has a consensus rating of "Moderate Buy" and a consensus target price of $320.85.

Astera Labs Stock Down 1.4%

The firm has a market capitalization of $39.81 billion, a PE ratio of 90.75 and a beta of 3.85. The firm's fifty day simple moving average is $296.41 and its 200-day simple moving average is $256.51.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.19 by $0.13. The firm had revenue of $584.90 million for the quarter, compared to analysts' expectations of $550.78 million. Astera Labs had a net margin of 29.64% and a return on equity of 25.35%. The business's revenue for the quarter was up 153.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.49 earnings per share. As a group, analysts predict that Astera Labs, Inc. will post 2.99 earnings per share for the current year.

Insider Buying and Selling at Astera Labs

In other Astera Labs news, CEO Jitendra Mohan sold 90,630 shares of Astera Labs stock in a transaction on Monday, August 17th. The stock was sold at an average price of $340.35, for a total value of $30,845,920.50. Following the completion of the sale, the chief executive officer 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Manuel Alba sold 183,000 shares of the business's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $280.13, for a total value of $51,263,790.00. Following the completion of the transaction, the director owned 253,863 shares of the company's stock, valued at $71,114,642.19. This represents a 41.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 408,558 shares of company stock worth $126,050,884. Insiders own 10.40% of the company's stock.

Institutional Investors Weigh In On Astera Labs

Several large investors have recently bought and sold shares of ALAB. Amazon Com Inc. purchased a new stake in Astera Labs in the second quarter worth approximately $134,172,000. Edgestream Partners L.P. purchased a new stake in Astera Labs during the 1st quarter valued at $1,891,000. Sanders Morris Harris LLC purchased a new stake in Astera Labs during the 3rd quarter valued at $4,821,000. Lido Advisors LLC lifted its holdings in shares of Astera Labs by 123.4% during the 1st quarter. Lido Advisors LLC now owns 27,477 shares of the company's stock valued at $3,012,000 after buying an additional 15,180 shares during the period. Finally, Silvant Capital Management LLC bought a new position in shares of Astera Labs during the 2nd quarter valued at $11,277,000. 60.47% of the stock is currently owned by institutional investors.

Astera Labs Company 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 move data among processors, accelerators, memory and other components in high-performance computing systems. The company's portfolio includes Aries PCIe and CXL retimers, Taurus Ethernet smart cable modules, Scorpio fabric switches and Leo CXL memory connectivity controllers. Astera Labs also offers software tools to help customers configure and monitor its connectivity products.

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