Astera Labs (NASDAQ:ALAB) Cut to Hold at Wall Street Zen

Wall Street Zen lowered shares of Astera Labs (NASDAQ:ALAB) from a buy rating to a hold rating in a research note released on Sunday morning.

ALAB has been the subject of a number of other research reports. Zacks Research downgraded shares of Astera Labs from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 6th. TD Cowen started coverage on shares of Astera Labs in a research note on Wednesday, October 1st. They set a “hold” rating and a $200.00 target price for the company. Jefferies Financial Group lifted their target price on shares of Astera Labs from $95.00 to $130.00 and gave the stock a “buy” rating in a research note on Tuesday, July 22nd. Citigroup lifted their target price on shares of Astera Labs from $160.00 to $275.00 and gave the stock a “buy” rating in a research note on Wednesday, September 17th. Finally, Northland Securities downgraded shares of Astera Labs from an “outperform” rating to a “market perform” rating and set a $120.00 target price for the company. in a research note on Tuesday, July 22nd. Fourteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, Astera Labs currently has a consensus rating of “Moderate Buy” and an average target price of $162.06.

Astera Labs Stock Performance

ALAB stock opened at $168.25 on Friday. The company has a fifty day moving average price of $196.41 and a 200-day moving average price of $133.93. The company has a market capitalization of $27.97 billion, a P/E ratio of 300.45, a PEG ratio of 4.24 and a beta of 1.43. Astera Labs has a 52-week low of $47.13 and a 52-week high of $262.90.

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

Insiders Place Their Bets

In other Astera Labs news, CFO Michael Truett Tate sold 18,861 shares of the firm’s stock in a transaction on Monday, August 18th. The shares were sold at an average price of $183.51, for a total value of $3,461,182.11. Following the completion of the sale, the chief financial officer directly owned 259,512 shares in the company, valued at approximately $47,623,047.12. This trade represents a 6.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Manuel Alba sold 183,000 shares of the business’s stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $173.27, for a total transaction of $31,708,410.00. Following the sale, the director directly owned 385,863 shares of the company’s stock, valued at approximately $66,858,482.01. The trade was a 32.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,092,997 shares of company stock valued at $192,231,120. 12.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Astera Labs

A number of institutional investors and hedge funds have recently made changes to their positions in ALAB. Fred Alger Management LLC boosted its holdings in Astera Labs by 13.0% during the first quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company’s stock worth $93,087,000 after purchasing an additional 179,638 shares during the last quarter. Hoey Investments Inc. boosted its holdings in Astera Labs by 22.4% during the second quarter. Hoey Investments Inc. now owns 6,121 shares of the company’s stock worth $553,000 after purchasing an additional 1,121 shares during the last quarter. Wealth Effects LLC purchased a new position in Astera Labs during the second quarter worth about $242,000. Maryland State Retirement & Pension System boosted its holdings in Astera Labs by 37.7% during the second quarter. Maryland State Retirement & Pension System now owns 6,960 shares of the company’s stock worth $629,000 after purchasing an additional 1,906 shares during the last quarter. Finally, Realta Investment Advisors purchased a new position in Astera Labs during the second quarter worth about $214,000. Institutional investors and hedge funds own 60.47% of the company’s stock.

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.