Astera Labs (NASDAQ:ALAB) Shares Down 7.2% – Should You Sell?

Shares of Astera Labs, Inc. (NASDAQ:ALAB) dropped 7.2% during mid-day trading on Monday . The company traded as low as $104.10 and last traded at $104.4090. Approximately 566,620 shares were traded during trading, a decline of 89% from the average daily volume of 5,101,335 shares. The stock had previously closed at $112.47.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Weiss Ratings lowered shares of Astera Labs from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, February 23rd. Royal Bank Of Canada assumed coverage on shares of Astera Labs in a report on Wednesday, January 14th. They set an “outperform” rating and a $225.00 price target for the company. Citigroup dropped their price target on Astera Labs from $275.00 to $250.00 and set a “buy” rating for the company in a research note on Wednesday, February 11th. Morgan Stanley reissued an “overweight” rating and set a $210.00 price objective on shares of Astera Labs in a report on Wednesday, December 3rd. Finally, Loop Capital began coverage on Astera Labs in a report on Thursday, March 5th. They issued a “buy” rating and a $250.00 target price for the company. Fifteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Astera Labs presently has a consensus rating of “Moderate Buy” and an average target price of $202.22.

Astera Labs Price Performance

The firm has a market capitalization of $18.85 billion, a P/E ratio of 90.22, a PEG ratio of 1.97 and a beta of 1.74. The company has a fifty day moving average of $135.19 and a 200 day moving average of $161.12.

Astera Labs (NASDAQ:ALAB) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.07. Astera Labs had a net margin of 25.70% and a return on equity of 16.12%. The firm had revenue of $270.58 million during the quarter, compared to analyst estimates of $249.46 million. During the same quarter last year, the business earned $0.37 EPS. The company’s revenue was up 91.8% compared to the same quarter last year. Astera Labs has set its Q1 2026 guidance at 0.530-0.540 EPS. On average, sell-side analysts forecast that Astera Labs, Inc. will post 0.34 EPS for the current year.

Insiders Place Their Bets

In other news, COO Sanjay Gajendra sold 94,971 shares of the business’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $123.81, for a total value of $11,758,359.51. Following the transaction, the chief operating officer directly owned 1,531,301 shares of the company’s stock, valued at $189,590,376.81. The trade was a 5.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Jack R. Lazar sold 7,500 shares of the company’s stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $119.80, for a total value of $898,500.00. Following the sale, the director owned 87,351 shares in the company, valued at approximately $10,464,649.80. The trade was a 7.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 384,292 shares of company stock valued at $48,724,919 over the last quarter. Company insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Astera Labs

Several institutional investors have recently added to or reduced their stakes in ALAB. Vanguard Group Inc. grew its position in shares of Astera Labs by 14.1% during the 3rd quarter. Vanguard Group Inc. now owns 13,743,141 shares of the company’s stock worth $2,690,907,000 after buying an additional 1,693,918 shares during the period. Atreides Management LP boosted its stake in Astera Labs by 2,496.6% during the fourth quarter. Atreides Management LP now owns 1,611,194 shares of the company’s stock worth $268,038,000 after acquiring an additional 1,549,144 shares in the last quarter. Amundi boosted its stake in Astera Labs by 1,298.6% during the third quarter. Amundi now owns 1,421,263 shares of the company’s stock worth $278,283,000 after acquiring an additional 1,319,643 shares in the last quarter. Rafferty Asset Management LLC acquired a new stake in Astera Labs in the third quarter worth $209,599,000. Finally, BNP Paribas Financial Markets grew its holdings in Astera Labs by 577.3% in the third quarter. BNP Paribas Financial Markets now owns 1,127,340 shares of the company’s stock worth $220,733,000 after purchasing an additional 960,899 shares during the period. 60.47% of the stock is owned by institutional investors and hedge funds.

About Astera Labs

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company’s product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.