Weiss Ratings Reaffirms Hold (C-) Rating for Astera Labs (NASDAQ:ALAB)

Key Points

• Weiss Ratings has reiterated a "hold (C-)" rating for Astera Labs (NASDAQ:ALAB) amid positive sentiments from other research firms, with several increasing price targets significantly.
• Astera Labs reported impressive earnings, with a 149.5% increase in quarterly revenue compared to the same period last year, leading to an EPS of $0.44 that beat analysts' expectations.
• Insider trading activity was noted, with significant sales from top executives, including the CEO and General Counsel, indicating potential shifts in stakeholder confidence.

Astera Labs (NASDAQ:ALAB - Get Free Report)'s stock had its "hold (c-)" rating reiterated by Weiss Ratings in a research note issued on Wednesday,Weiss Ratings reports.

A number of other research firms also recently commented on ALAB. Jefferies Financial Group increased their target price on Astera Labs from $95.00 to $130.00 and gave the stock a "buy" rating in a report on Tuesday, July 22nd. Needham & Company LLC increased their price target on Astera Labs from $100.00 to $170.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Evercore ISI increased their price target on Astera Labs from $104.00 to $215.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 6th. Deutsche Bank Aktiengesellschaft increased their price target on Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, September 2nd. Finally, Bank of America began coverage on Astera Labs in a research report on Friday, October 3rd. They set a "neutral" rating and a $230.00 price target on the stock. Fifteen equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $159.83.

Astera Labs Stock Up 3.4%

NASDAQ:ALAB traded up $7.26 during trading hours on Wednesday, reaching $219.36. 3,660,196 shares of the stock were exchanged, compared to its average volume of 5,133,080. The firm has a 50 day simple moving average of $193.63 and a 200-day simple moving average of $121.53. Astera Labs has a 52 week low of $47.13 and a 52 week high of $262.90. The stock has a market capitalization of $36.46 billion, a P/E ratio of 391.71, a P/E/G ratio of 5.50 and a beta of 1.43.

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

Insider Transactions at Astera Labs

In related news, General Counsel Philip Mazzara sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $192.16, for a total value of $1,921,600.00. Following the sale, the general counsel directly owned 151,573 shares in the company, valued at $29,126,267.68. This trade represents a 6.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Jitendra Mohan sold 91,441 shares of the firm's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $183.51, for a total value of $16,780,337.91. Following the completion of the sale, the chief executive officer owned 2,170,877 shares in the company, valued at approximately $398,377,638.27. This represents a 4.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,320,054 shares of company stock worth $215,638,632 over the last quarter. Insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Astera Labs

Several hedge funds have recently modified their holdings of ALAB. Wealth Enhancement Advisory Services LLC acquired a new position in shares of Astera Labs during the 4th quarter valued at $475,000. Rhumbline Advisers increased its position in shares of Astera Labs by 4.4% during the 1st quarter. Rhumbline Advisers now owns 104,345 shares of the company's stock valued at $6,226,000 after purchasing an additional 4,396 shares during the period. Farther Finance Advisors LLC increased its position in shares of Astera Labs by 198.6% during the 1st quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock valued at $80,000 after purchasing an additional 854 shares during the period. Wealthcare Advisory Partners LLC increased its position in shares of Astera Labs by 1.1% during the 1st quarter. Wealthcare Advisory Partners LLC now owns 28,939 shares of the company's stock valued at $1,727,000 after purchasing an additional 320 shares during the period. Finally, GAMMA Investing LLC increased its position in shares of Astera Labs by 55.7% during the 1st quarter. GAMMA Investing LLC now owns 794 shares of the company's stock valued at $47,000 after purchasing an additional 284 shares during the period. 60.47% of the stock is currently owned by institutional investors and hedge funds.

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.

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