Wall Street Zen Upgrades Astera Labs (NASDAQ:ALAB) to "Buy"

Key Points

• Astera Labs (NASDAQ:ALAB) has been upgraded to a "Buy" rating by Wall Street Zen, indicating a positive outlook from investment analysts.
• Multiple analysts have increased their price targets for Astera Labs, with Deutsche Bank raising it from $160 to $200 and Evercore ISI from $104 to $215.
• Astera Labs reported strong quarterly earnings with a revenue increase of 149.5% year-over-year, showcasing significant growth potential in the semiconductor market.

Astera Labs (NASDAQ:ALAB - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Other equities analysts have also recently issued reports about the company. Deutsche Bank Aktiengesellschaft upped their price objective on Astera Labs from $160.00 to $200.00 and gave the company a "buy" rating in a research report on Tuesday, September 2nd. Morgan Stanley upped their price objective on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 29th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Astera Labs in a research report on Wednesday, October 8th. Northland Capmk cut Astera Labs from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 22nd. Finally, Evercore ISI upped their price objective on Astera Labs from $104.00 to $215.00 and gave the company an "outperform" rating in a research report on Wednesday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat.com, Astera Labs has a consensus rating of "Moderate Buy" and an average price target of $162.06.

Astera Labs Stock Down 2.3%

Astera Labs stock opened at $159.80 on Friday. The company has a market capitalization of $26.56 billion, a P/E ratio of 285.36, a PEG ratio of 4.07 and a beta of 1.43. The stock's 50 day moving average is $199.68 and its 200 day moving average is $127.85. Astera Labs has a twelve month low of $47.13 and a twelve month high of $262.90.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.11. The company had revenue of $191.93 million for the quarter, compared to the consensus estimate of $172.46 million. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The firm's quarterly revenue was up 149.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.13 EPS. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. As a group, equities analysts expect that Astera Labs will post 0.34 EPS for the current year.

Insider Activity

In other news, CEO Jitendra Mohan sold 152,517 shares of the stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $170.33, for a total transaction of $25,978,220.61. Following the transaction, the chief executive officer directly owned 450,001 shares of the company's stock, valued at $76,648,670.33. This represents a 25.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Michael Truett Tate sold 100,000 shares of the stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $171.38, for a total value of $17,138,000.00. Following the transaction, the chief financial officer directly owned 518,996 shares in the company, valued at $88,945,534.48. The trade was a 16.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,182,514 shares of company stock worth $202,298,671. Insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors have recently bought and sold shares of the stock. Great Valley Advisor Group Inc. raised its holdings in Astera Labs by 2.2% in the 2nd quarter. Great Valley Advisor Group Inc. now owns 4,119 shares of the company's stock worth $372,000 after purchasing an additional 90 shares during the period. Straight Path Wealth Management raised its holdings in Astera Labs by 1.5% in the 2nd quarter. Straight Path Wealth Management now owns 6,850 shares of the company's stock worth $619,000 after purchasing an additional 100 shares during the period. First Horizon Advisors Inc. raised its holdings in Astera Labs by 12.4% in the 2nd quarter. First Horizon Advisors Inc. now owns 982 shares of the company's stock worth $89,000 after purchasing an additional 108 shares during the period. Advisors Asset Management Inc. raised its holdings in Astera Labs by 68.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 477 shares of the company's stock worth $43,000 after purchasing an additional 194 shares during the period. Finally, Berbice Capital Management LLC raised its holdings in Astera Labs by 14.3% in the 2nd quarter. Berbice Capital Management LLC now owns 1,600 shares of the company's stock worth $145,000 after purchasing an additional 200 shares during the period. 60.47% of the stock is owned by institutional investors.

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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