Stifel Nicolaus Reaffirms Buy Rating for Astera Labs (NASDAQ:ALAB)

Key Points

• Stifel Nicolaus has reaffirmed a Buy rating for Astera Labs (NASDAQ:ALAB) and increased the target price from $110.00 to $145.00, indicating a potential upside of 2.21% from the previous close.
• Astera Labs reported strong earnings for the last quarter, with a $0.33 EPS, exceeding analysts' expectations, and a year-over-year revenue increase of 144.1%.
• Insider transactions have been notable, with key executives selling large volumes of shares, as insiders have sold over 2 million shares valued at approximately $200 million in the past three months.

Astera Labs (NASDAQ:ALAB - Get Free Report)'s stock had its "buy" rating restated by investment analysts at Stifel Nicolaus in a research report issued on Monday,Benzinga reports. They currently have a $145.00 target price on the stock, up from their previous target price of $110.00. Stifel Nicolaus' price objective points to a potential upside of 2.21% from the company's previous close.

A number of other equities analysts have also issued reports on the company. Jefferies Financial Group raised their target price on Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a research note on Tuesday, July 22nd. William Blair began coverage on Astera Labs in a report on Thursday, May 22nd. They set an "outperform" rating on the stock. Susquehanna began coverage on Astera Labs in a research report on Friday, May 16th. They issued a "neutral" rating and a $80.00 target price on the stock. Barclays boosted their target price on shares of Astera Labs from $70.00 to $75.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 7th. Finally, Northland Securities downgraded shares of Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 price objective for the company. in a research note on Tuesday, July 22nd. Four equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $106.73.

Astera Labs Stock Performance

Shares of Astera Labs stock traded up $10.77 during trading hours on Monday, hitting $141.87. The company's stock had a trading volume of 3,694,706 shares, compared to its average volume of 4,819,310. The business has a 50 day moving average price of $99.49 and a two-hundred day moving average price of $85.75. Astera Labs has a 12-month low of $36.22 and a 12-month high of $147.39. The company has a market cap of $23.40 billion, a PE ratio of 643.50, 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, topping analysts' consensus estimates of $0.28 by $0.05. Astera Labs had a return on equity of 2.57% and a net margin of 8.44%. The company had revenue of $159.44 million for the quarter, compared to the consensus estimate of $151.55 million. During the same period in the previous year, the business earned $0.10 earnings per share. The firm's revenue for the quarter was up 144.1% on a year-over-year basis. As a group, research analysts anticipate that Astera Labs will post 0.34 earnings per share for the current year.

Insider Activity

In other news, insider Sanjay Gajendra sold 165,000 shares of the stock in a transaction 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 sale, the insider directly owned 755,000 shares of the company's stock, valued at approximately $54,178,800. This represents a 17.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Michael Truett Tate sold 500,000 shares of the company's stock in a transaction on 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 transaction, the chief financial officer directly owned 618,996 shares in the company, valued at approximately $55,852,009.08. The trade was a 44.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, 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 bought and sold shares of ALAB. Oliver Lagore Vanvalin Investment Group bought a new position in Astera Labs during the second quarter valued at approximately $29,000. Bernard Wealth Management Corp. bought a new stake in shares of Astera Labs in the 2nd quarter valued at approximately $36,000. Sound Income Strategies LLC lifted its stake in shares of 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 purchasing an additional 204 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Astera Labs by 55.7% in the first quarter. GAMMA Investing LLC now owns 794 shares of the company's stock worth $47,000 after buying an additional 284 shares during the period. Finally, Harbour Investments Inc. raised its holdings in shares of Astera Labs by 351.7% in the first quarter. Harbour Investments Inc. now owns 795 shares of the company's stock worth $47,000 after buying an additional 619 shares during the period. Hedge funds and other institutional investors own 60.47% of the company's stock.

Astera Labs Company Profile

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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