Astera Labs (NASDAQ:ALAB) Shares Down 5.6% – What’s Next?

Astera Labs, Inc. (NASDAQ:ALAB)’s stock price dropped 5.6% during trading on Wednesday . The company traded as low as $174.34 and last traded at $173.4750. Approximately 1,976,846 shares traded hands during mid-day trading, a decline of 59% from the average daily volume of 4,872,902 shares. The stock had previously closed at $183.75.

Analyst Ratings Changes

A number of brokerages have commented on ALAB. Bank of America started coverage on shares of Astera Labs in a research report on Friday, October 3rd. They set a “neutral” rating and a $230.00 price target on the stock. BNP Paribas Exane began coverage on Astera Labs in a research report on Thursday, November 20th. They set an “outperform” rating and a $225.00 target price on the stock. Zacks Research downgraded Astera Labs from a “strong-buy” rating to a “hold” rating in a report on Monday, October 6th. Barclays set a $165.00 price target on Astera Labs in a research note on Thursday, January 15th. Finally, BNP Paribas initiated coverage on shares of Astera Labs in a research report on Thursday, November 20th. They set an “outperform” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $190.63.

Astera Labs Stock Performance

The firm has a market capitalization of $29.73 billion, a P/E ratio of 158.57, a PEG ratio of 2.48 and a beta of 1.50. The firm has a 50 day simple moving average of $160.29 and a two-hundred day simple moving average of $168.14.

Astera Labs (NASDAQ:ALAB) last released its earnings results on Tuesday, November 4th. The company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.10. The company had revenue of $230.58 million for the quarter, compared to analysts’ expectations of $206.42 million. Astera Labs had a return on equity of 13.48% and a net margin of 27.50%.The business’s revenue for the quarter was up 103.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.23 EPS. Astera Labs has set its Q4 2025 guidance at 0.50-0.510 EPS. Sell-side analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Activity at Astera Labs

In other Astera Labs news, CFO Michael Truett Tate sold 11,430 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $144.69, for a total value of $1,653,806.70. Following the completion of the transaction, the chief financial officer owned 192,297 shares of the company’s stock, valued at $27,823,452.93. The trade was a 5.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Manuel Alba sold 150,000 shares of the company’s stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $166.18, for a total value of $24,927,000.00. Following the completion of the transaction, the director owned 1,574,498 shares of the company’s stock, valued at $261,650,077.64. The trade was a 8.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 576,936 shares of company stock valued at $87,409,540 in the last ninety days. 12.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Perigon Wealth Management LLC lifted its stake in shares of Astera Labs by 6.2% in the 4th quarter. Perigon Wealth Management LLC now owns 1,252 shares of the company’s stock valued at $208,000 after acquiring an additional 73 shares during the last quarter. Clearstead Advisors LLC increased its stake in Astera Labs by 13.6% in the 3rd quarter. Clearstead Advisors LLC now owns 636 shares of the company’s stock worth $125,000 after purchasing an additional 76 shares during the period. Sound Income Strategies LLC lifted its position in Astera Labs by 9.2% in the fourth quarter. Sound Income Strategies LLC now owns 902 shares of the company’s stock valued at $164,000 after purchasing an additional 76 shares during the last quarter. Great Valley Advisor Group Inc. boosted its stake in shares of Astera Labs by 2.2% during the second quarter. Great Valley Advisor Group Inc. now owns 4,119 shares of the company’s stock valued at $372,000 after purchasing an additional 90 shares during the period. Finally, Straight Path Wealth Management boosted its stake in shares of Astera Labs by 1.5% during the second quarter. Straight Path Wealth Management now owns 6,850 shares of the company’s stock valued at $619,000 after purchasing an additional 100 shares during the period. 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.