Astera Labs (NASDAQ:ALAB) Stock Price Up 12.4% - Still a Buy?

Key Points

• Astera Labs shares rose 12.4% to $214.33 in mid-day trading, though volume was 73% 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 increased 153.6% year over year.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $320.85, while insiders sold about $123.4 million in shares over the last quarter.

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) shares traded up 12.4% during mid-day trading on Monday. The company traded as high as $214.90 and last traded at $214.33. 1,401,966 shares were traded during trading, a decline of 73% from the average daily volume of 5,132,619 shares. The stock had previously closed at $190.71.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on ALAB shares. Barclays lifted their target price on Astera Labs from $200.00 to $325.00 and gave the company an "equal weight" rating in a report on Monday, July 20th. Citigroup downgraded shares of Astera Labs from a "buy" rating to a "hold" rating in a report on Friday, October 9th. UBS Group lowered their price target on shares of Astera Labs from $300.00 to $290.00 and set a "neutral" rating on the stock in a report on Wednesday, November 4th. Roth Capital restated a "buy" rating and issued a $450.00 price objective on shares of Astera Labs in a research report on Wednesday, August 5th. Finally, Morgan Stanley boosted their price objective on shares of Astera Labs from $382.00 to $389.00 and gave the company an "overweight" rating in a research note on Wednesday, November 4th. Thirteen equities research 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, Astera Labs presently has an average rating of "Moderate Buy" and an average price target of $320.85.

Astera Labs Price Performance

The firm has a 50-day moving average of $300.46 and a 200 day moving average of $255.80. The company has a market capitalization of $37.61 billion, a PE ratio of 85.97 and a beta of 3.86.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The company reported $1.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.13. The business 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% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.49 EPS. Equities analysts expect that Astera Labs, Inc. will post 2.71 EPS for the current year.

Insider Activity at Astera Labs

In related news, General Counsel Philip Mazzara sold 6,801 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $340.50, for a total transaction of $2,315,740.50. Following the transaction, the general counsel owned 96,542 shares in the company, valued at $32,872,551. This represents a 6.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Stefan Dyckerhoff sold 8,994 shares of the firm's stock in a transaction that occurred on Wednesday, October 7th. The stock was sold at an average price of $376.06, for a total transaction of $3,382,283.64. Following the completion of the sale, the director owned 2,648 shares in the company, valued at $995,806.88. This represents a 77.25% 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. Insiders have sold 396,059 shares of company stock valued at $123,408,470 over the last quarter. 10.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors and hedge funds have recently modified their holdings of ALAB. BlackRock Inc. bought a new position in Astera Labs in the second quarter valued at about $6,609,581,000. ABS Investment Management LLC bought a new stake in shares of Astera Labs during the 2nd quarter valued at about $1,980,382,000. Van ECK Associates Corp raised its holdings in shares of Astera Labs by 20.0% during the 2nd quarter. Van ECK Associates Corp now owns 2,237,961 shares of the company's stock worth $1,080,980,000 after acquiring an additional 373,545 shares in the last quarter. Bank of America Corp DE bought a new position in shares of Astera Labs during the 2nd quarter valued at approximately $1,061,791,000. Finally, Atreides Management LP purchased a new position in shares of Astera Labs in the second quarter valued at $587,736,000. 60.47% of the stock is currently owned by hedge funds and other 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.

Founded in 2017 and headquartered in Santa Clara, California, Astera Labs serves the global cloud and computing markets.

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