Astera Labs (NASDAQ:ALAB) Shares Up 6.8% – Should You Buy?

Astera Labs, Inc. (NASDAQ:ALAB) rose 6.8% on Wednesday. The company traded as high as $237.76 and last traded at $230.91. 3,966,352 shares traded hands during mid-day trading, a decline of 23% from the average daily volume of 5,153,752 shares. The stock had previously closed at $216.18.

Wall Street Analyst Weigh In

ALAB has been the topic of several research reports. Zacks Research lowered Astera Labs from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Citigroup downgraded shares of Astera Labs from a “buy” rating to a “hold” rating in a report on Friday, October 9th. Barclays lifted their price objective on shares of Astera Labs from $200.00 to $325.00 and gave the stock an “equal weight” rating in a report on Monday, July 20th. BMO Capital Markets started coverage on shares of Astera Labs in a research note on Thursday, November 5th. They set an “outperform” rating and a $375.00 target price for the company. Finally, Needham & Company LLC dropped their target price on shares of Astera Labs from $425.00 to $300.00 and set a “buy” rating on the stock in a report on Wednesday, November 4th. Thirteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $320.85.

Astera Labs Stock Down 2.6%

The company has a market capitalization of $38.77 billion, a price-to-earnings ratio of 88.38 and a beta of 3.85. The stock has a 50 day simple moving average of $295.49 and a 200 day simple moving average of $256.83.

Astera Labs (NASDAQ:ALAB) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.13. The business had revenue of $584.90 million for the quarter, compared to the consensus estimate of $550.78 million. Astera Labs had a return on equity of 25.35% and a net margin of 29.64%. The business’s revenue was up 153.6% on a year-over-year basis. During the same quarter last year, the business posted $0.49 EPS. As a group, analysts forecast that Astera Labs, Inc. will post 2.99 EPS for the current year.

Insider Activity at Astera Labs

In other news, Director Stefan Dyckerhoff sold 8,994 shares of the company’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $376.06, for a total transaction of $3,382,283.64. Following the completion of the transaction, the director owned 2,648 shares in the company, valued at approximately $995,806.88. This represents a 77.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Manuel Alba sold 183,000 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $280.13, for a total transaction of $51,263,790.00. Following the completion of the sale, the director directly owned 253,863 shares in the company, valued at approximately $71,114,642.19. This trade represents a 41.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 408,558 shares of company stock valued at $126,050,884. Company insiders own 10.40% of the company’s stock.

Institutional Investors Weigh In On Astera Labs

Several large investors have recently made changes to their positions in the company. State Board of Administration of Florida Retirement System raised its holdings in shares of Astera Labs by 7.5% during the third quarter. State Board of Administration of Florida Retirement System now owns 141,360 shares of the company’s stock valued at $50,320,000 after buying an additional 9,846 shares during the last quarter. HighVista Strategies LLC grew its holdings in Astera Labs by 79.0% in the 3rd quarter. HighVista Strategies LLC now owns 5,723 shares of the company’s stock worth $2,037,000 after buying an additional 2,525 shares in the last quarter. Polymer Capital Management US LLC increased its position in Astera Labs by 1,509.6% in the 3rd quarter. Polymer Capital Management US LLC now owns 15,500 shares of the company’s stock valued at $5,518,000 after acquiring an additional 14,537 shares during the period. Meeder Advisory Services Inc. increased its position in Astera Labs by 15.7% in the 3rd quarter. Meeder Advisory Services Inc. now owns 2,555 shares of the company’s stock valued at $910,000 after acquiring an additional 347 shares during the period. Finally, First Trust Advisors LP increased its position in Astera Labs by 0.6% in the 3rd quarter. First Trust Advisors LP now owns 583,944 shares of the company’s stock valued at $207,867,000 after acquiring an additional 3,256 shares during the period. Institutional investors and hedge funds own 60.47% of the company’s stock.

Astera Labs Company Profile

Astera Labs, Inc. is a fabless semiconductor company that develops connectivity solutions for cloud and artificial intelligence infrastructure. Its products are designed to help move data among processors, accelerators, memory and other components in high-performance computing systems. The company’s portfolio includes Aries PCIe and CXL retimers, Taurus Ethernet smart cable modules, Scorpio fabric switches and Leo CXL memory connectivity controllers. Astera Labs also offers software tools to help customers configure and monitor its connectivity products.