Astera Labs (NASDAQ:ALAB) Shares Up 13.3% – Still a Buy?

Astera Labs, Inc. (NASDAQ:ALAB)’s share price was up 13.3% during mid-day trading on Tuesday . The stock traded as high as $255.96 and last traded at $244.26. Approximately 9,386,312 shares changed hands during trading, an increase of 72% from the average daily volume of 5,445,108 shares. The stock had previously closed at $215.58.

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Barclays increased their price target on shares of Astera Labs from $165.00 to $200.00 and gave the company an “equal weight” rating in a research report on Thursday, May 7th. Morgan Stanley boosted their target price on shares of Astera Labs from $210.00 to $240.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. TD Cowen raised their price target on shares of Astera Labs from $140.00 to $225.00 and gave the stock a “hold” rating in a research note on Wednesday, May 6th. Susquehanna lifted their price target on shares of Astera Labs from $155.00 to $230.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Finally, Royal Bank Of Canada upped their price objective on Astera Labs from $250.00 to $270.00 and gave the company an “outperform” rating in a research note on Wednesday, May 6th. Fifteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, Astera Labs presently has a consensus rating of “Moderate Buy” and an average price target of $233.75.

Astera Labs Trading Up 13.3%

The firm has a market cap of $41.87 billion, a P/E ratio of 165.04, a PEG ratio of 3.08 and a beta of 3.35. The business’s fifty day simple moving average is $157.31 and its 200-day simple moving average is $156.64.

Astera Labs (NASDAQ:ALAB) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.61 EPS for the quarter, topping analysts’ consensus estimates of $0.54 by $0.07. Astera Labs had a return on equity of 18.49% and a net margin of 26.72%.The firm had revenue of $308.36 million during the quarter, compared to analyst estimates of $292.19 million. During the same period last year, the company earned $0.33 earnings per share. The business’s revenue for the quarter was up 93.5% on a year-over-year basis. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. As a group, research analysts expect that Astera Labs, Inc. will post 1.84 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Sanjay Gajendra sold 230,639 shares of the company’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $198.22, for a total transaction of $45,717,262.58. Following the sale, the chief operating officer directly owned 664,361 shares in the company, valued at $131,689,637.42. This represents a 25.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jitendra Mohan sold 325,693 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $172.14, for a total transaction of $56,064,793.02. Following the completion of the sale, the chief executive officer directly owned 4,079,322 shares in the company, valued at approximately $702,214,489.08. The trade was a 7.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,290,546 shares of company stock worth $211,225,088 over the last quarter. 12.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Assetmark Inc. lifted its stake in Astera Labs by 374.1% during the third quarter. Assetmark Inc. now owns 128 shares of the company’s stock worth $25,000 after purchasing an additional 101 shares during the last quarter. Reflection Asset Management bought a new position in shares of Astera Labs during the 4th quarter valued at about $25,000. Smartleaf Asset Management LLC increased its position in shares of Astera Labs by 422.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 188 shares of the company’s stock valued at $32,000 after purchasing an additional 152 shares during the last quarter. Hilltop National Bank raised its holdings in shares of Astera Labs by 100.0% during the 4th quarter. Hilltop National Bank now owns 200 shares of the company’s stock valued at $33,000 after buying an additional 100 shares in the last quarter. Finally, Aventura Private Wealth LLC bought a new stake in Astera Labs in the 4th quarter worth approximately $33,000. 60.47% of the stock is owned by institutional investors.

Astera Labs Company Profile

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.