Morgan Stanley Issues Positive Forecast for Astera Labs (NASDAQ:ALAB) Stock Price

Astera Labs (NASDAQ:ALAB) had its target price upped by investment analysts at Morgan Stanley from $382.00 to $389.00 in a research note issued on Wednesday, Benzinga reports. The firm currently has an “overweight” rating on the stock. Morgan Stanley‘s price target would suggest a potential upside of 77.06% from the stock’s previous close.

A number of other brokerages have also weighed in on ALAB. Barclays raised their price objective on Astera Labs from $200.00 to $325.00 and gave the company an “equal weight” rating in a research report on Monday, July 20th. Weiss Ratings lowered shares of Astera Labs from a “buy (b-)” rating to a “hold (c)” rating in a research report on Friday, October 23rd. Northland Securities upgraded shares of Astera Labs from a “market perform” rating to an “outperform” rating and set a $315.00 target price on the stock in a research note on Wednesday. UBS Group reissued a “neutral” rating and issued a $290.00 price objective on shares of Astera Labs in a research note on Wednesday. Finally, Royal Bank Of Canada lowered their target price on shares of Astera Labs from $500.00 to $400.00 and set an “outperform” rating for the company in a research note on Wednesday. Twelve research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $321.95.

Astera Labs Trading Down 6.0%

Shares of ALAB stock traded down $13.92 during midday trading on Wednesday, reaching $219.70. 4,936,739 shares of the stock were exchanged, compared to its average volume of 5,097,504. The firm has a market cap of $38.12 billion, a PE ratio of 108.74 and a beta of 3.85. The company’s 50 day moving average is $306.13 and its two-hundred day moving average is $255.53. Astera Labs has a 1 year low of $97.89 and a 1 year high of $499.48.

Astera Labs (NASDAQ:ALAB) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $1.32 earnings per share for the quarter, beating analysts’ consensus estimates of $1.19 by $0.13. Astera Labs had a net margin of 30.74% and a return on equity of 19.24%. The business had revenue of $584.90 million during the quarter, compared to analyst estimates of $550.78 million. During the same period last year, the business earned $0.49 EPS. Astera Labs’s revenue was up 153.6% compared to the same quarter last year. As a group, equities analysts expect that Astera Labs will post 2.71 EPS for the current fiscal year.

Insider Activity

In other news, CEO Jitendra Mohan sold 90,630 shares of Astera Labs stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $340.35, for a total transaction of $30,845,920.50. Following the completion of the transaction, the chief executive officer directly owned 1,266,665 shares in the company, valued at $431,109,432.75. This trade represents a 6.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Sanjay Gajendra sold 90,630 shares of the 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 sale, the chief operating officer owned 1,119,038 shares in the company, valued at approximately $380,864,583.30. This represents a 7.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 408,558 shares of company stock worth $127,306,034. 10.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Astera Labs

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

Trending Headlines about Astera Labs

Here are the key news stories impacting Astera Labs this week:

• Positive Sentiment: Q3 revenue reached a record $584.9 million, up 154% year over year, while EPS of $1.32 topped the $1.19 consensus. Scorpio fabric switches became Astera’s largest product family, with volume production of the Scorpio X-Series driving growth. Astera Labs Q3 results
• Positive Sentiment: Management sees Q4 revenue of $730 million to $750 million and is pursuing additional growth in optical connectivity, memory and rack-scale AI systems. Northland Securities upgraded ALAB to “outperform” with a $315 target. Earnings call and growth highlights
• Neutral Sentiment: Analyst views diverged: Susquehanna cut its price target to $258 and kept a “neutral” rating, while Northland upgraded the shares. The split reflects uncertainty about the stock’s outlook even as business growth remains strong. Susquehanna rating
• Negative Sentiment: ALAB has fallen sharply from its 12-month high and recently broke below key technical levels. That momentum and the stock’s high valuation may help explain why investors have not fully rewarded the earnings and guidance beat. Recent share-price and technical weakness

Astera Labs Company Profile

Astera Labs, Inc is a semiconductor and connectivity solutions company that develops hardware and software for data centers, cloud computing, and artificial intelligence infrastructure. Its products are designed to help move data between processors, memory, storage, and networking components while addressing bandwidth, latency, and system-management requirements.

The company’s portfolio includes Aries PCI Express and Compute Express Link (CXL) Smart Retimers, Taurus Ethernet Smart Cable Modules, Scorpio Smart Fabric Switches, and Leo CXL Memory Connectivity Controllers.