Astera Labs (NASDAQ:ALAB) Shares Down 19.2% Following Analyst Downgrade

Astera Labs, Inc. (NASDAQ:ALAB)’s stock price traded down 19.2% during mid-day trading on Thursday after TD Cowen lowered their price target on the stock from $300.00 to $225.00. TD Cowen currently has a hold rating on the stock. Astera Labs traded as low as $180.11 and last traded at $180.4430. Approximately 3,260,599 shares were traded during trading, a decline of 36% from the average session volume of 5,100,226 shares. The stock had previously closed at $223.27.

Other analysts have also issued reports about the stock. Barclays increased their target price on shares of Astera Labs from $200.00 to $325.00 and gave the company an “equal weight” rating in a research note on Monday, July 20th. Susquehanna dropped their price target on Astera Labs from $310.00 to $258.00 and set a “neutral” rating on the stock in a report on Wednesday. Citigroup downgraded Astera Labs from a “buy” rating to a “hold” rating in a research report on Friday, October 9th. Needham & Company LLC reduced their price objective on Astera Labs from $425.00 to $300.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Royal Bank Of Canada decreased their target price on Astera Labs from $500.00 to $400.00 and set an “outperform” rating on the stock in a report on Wednesday. Thirteen equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, Astera Labs presently has an average rating of “Moderate Buy” and an average price target of $320.85.

Insider Buying and Selling

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $280.13, for a total value of $51,263,790.00. Following the completion of the transaction, the director directly owned 253,863 shares in the company, valued at $71,114,642.19. This trade represents a 41.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Philip Mazzara sold 6,801 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $340.50, for a total transaction of $2,315,740.50. Following the sale, the general counsel owned 96,542 shares in the company, valued at $32,872,551. This represents a 6.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 396,059 shares of company stock valued at $123,408,470. Company insiders own 10.40% of the company’s stock.

Astera Labs News Roundup

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

• Positive Sentiment: Astera reported Q3 revenue of $584.9 million, up 154% year over year, and EPS of $1.32 versus the $1.19 consensus. Scorpio fabric switches were the largest product family, supporting the strong results. Management forecast Q4 revenue of $730 million to $750 million and pointed to opportunities in optical connectivity, memory and rack-scale AI. Astera Labs Q3 results
• Positive Sentiment: BMO Capital Markets initiated coverage with an Outperform rating and a $375 price target. Northland Securities also upgraded ALAB to Outperform, with a $315 target. BMO rating Northland rating
• Neutral Sentiment: Analyst views are divided. Morgan Stanley raised its target to $389 and RBC maintained Outperform while cutting its target to $400; TD Cowen and Susquehanna lowered targets, with Hold and Neutral ratings, respectively.
• Negative Sentiment: The earnings beat has not overcome concern that ALAB’s valuation remains rich. Coverage also cites competitive threats, customer concentration and rising costs as risks; some analysts have cut forecasts after the results. ALAB valuation concerns

Institutional Trading of Astera Labs

Hedge funds have recently modified their holdings of the business. Greenleaf Trust lifted its stake in Astera Labs by 1.8% in the 2nd quarter. Greenleaf Trust now owns 2,000 shares of the company’s stock worth $966,000 after acquiring an additional 36 shares in the last quarter. Parkside Financial Bank & Trust grew its stake in Astera Labs by 74.5% during the 2nd quarter. Parkside Financial Bank & Trust now owns 96 shares of the company’s stock valued at $46,000 after acquiring an additional 41 shares in the last quarter. Integrated Advisors Network LLC grew its stake in Astera Labs by 4.8% during the 3rd quarter. Integrated Advisors Network LLC now owns 983 shares of the company’s stock valued at $350,000 after acquiring an additional 45 shares in the last quarter. Interchange Capital Partners LLC increased its holdings in shares of Astera Labs by 4.4% in the 3rd quarter. Interchange Capital Partners LLC now owns 1,187 shares of the company’s stock valued at $423,000 after purchasing an additional 50 shares during the period. Finally, Glenmede Trust Co. NA increased its holdings in shares of Astera Labs by 2.7% in the 1st quarter. Glenmede Trust Co. NA now owns 1,909 shares of the company’s stock valued at $209,000 after purchasing an additional 51 shares during the period. Hedge funds and other institutional investors own 60.47% of the company’s stock.

Astera Labs Stock Down 15.2%

The business’s 50-day moving average price is $304.94 and its 200-day moving average price is $255.78. The firm has a market capitalization of $32.83 billion, a PE ratio of 73.31 and a beta of 3.85.

Astera Labs (NASDAQ:ALAB) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.13. The firm had revenue of $584.90 million for the quarter, compared to analyst estimates of $550.78 million. Astera Labs had a net margin of 29.64% and a return on equity of 27.30%. The company’s revenue for the quarter was up 153.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.49 earnings per share. On average, analysts anticipate that Astera Labs, Inc. will post 2.71 EPS for the current fiscal year.

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.