Astera Labs (NASDAQ:ALAB) Stock Price Down 2.6% – Here’s Why

Astera Labs, Inc. (NASDAQ:ALAB)’s share price traded down 2.6% during trading on Friday. The company traded as low as $209.49 and last traded at $221.83. 4,068,200 shares traded hands during trading, a decline of 21% from the average session volume of 5,141,032 shares. The stock had previously closed at $227.79.

Analysts Set New Price Targets

Several analysts have recently commented on ALAB shares. Citigroup cut shares of Astera Labs from a “buy” rating to a “hold” rating in a research note on Friday, October 9th. Royal Bank Of Canada dropped their price target on shares of Astera Labs from $500.00 to $400.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 4th. Jefferies Financial Group increased their price target on shares of Astera Labs from $270.00 to $450.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Northland Securities upgraded shares of Astera Labs from a “market perform” rating to an “outperform” rating and set a $315.00 price objective for the company in a research report on Wednesday, November 4th. Finally, BMO Capital Markets started coverage on Astera Labs in a report on Thursday, November 5th. They issued an “outperform” rating and a $375.00 price objective on the stock. Thirteen equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Astera Labs has a consensus rating of “Moderate Buy” and an average price target of $320.85.

Astera Labs Stock Down 2.6%

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

Astera Labs (NASDAQ:ALAB) last issued its earnings results on Tuesday, November 3rd. The company reported $1.32 EPS for the quarter, topping the consensus estimate of $1.19 by $0.13. The company 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 25.35%. The business’s revenue was up 153.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.49 EPS. Equities analysts anticipate that Astera Labs, Inc. will post 2.99 EPS for the current fiscal year.

Insider Activity at Astera Labs

In other Astera Labs news, Director Stefan Dyckerhoff sold 8,994 shares of the stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $376.06, for a total value of $3,382,283.64. Following the completion of the transaction, the director directly owned 2,648 shares of the company’s stock, valued at approximately $995,806.88. This trade represents a 77.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Philip Mazzara sold 6,801 shares of Astera Labs 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 of the company’s stock, valued at approximately $32,872,551. The trade was a 6.58% decrease in their ownership of the stock. 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. Insiders sold a total of 408,558 shares of company stock valued at $126,050,884 in the last ninety days. Company insiders own 10.40% of the company’s stock.

Hedge Funds Weigh In On Astera Labs

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Astera Labs in the 2nd quarter worth about $6,609,581,000. Atreides Management LP grew its holdings in shares of Astera Labs by 108.9% during the 1st quarter. Atreides Management LP now owns 3,365,787 shares of the company’s stock worth $368,890,000 after purchasing an additional 1,754,593 shares during the period. Van ECK Associates Corp grew its holdings in shares of Astera Labs by 20.0% during the 2nd quarter. Van ECK Associates Corp now owns 2,237,961 shares of the company’s stock worth $1,080,980,000 after purchasing an additional 373,545 shares during the period. Bank of America Corp DE purchased a new stake in shares of Astera Labs during the 2nd quarter worth about $1,061,791,000. Finally, Amundi increased its position in Astera Labs by 77.9% during the 1st quarter. Amundi now owns 1,880,830 shares of the company’s stock worth $206,139,000 after purchasing an additional 823,477 shares in the last quarter. 60.47% of the stock is owned by hedge funds and other institutional investors.

About Astera Labs

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.