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

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

Analyst Upgrades and Downgrades

A number of brokerages have commented on ALAB. Needham & Company LLC dropped their price objective on shares of Astera Labs from $425.00 to $300.00 and set a “buy” rating on the stock in a research report on Wednesday, November 4th. UBS Group lowered their target price on shares of Astera Labs from $300.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, November 4th. Zacks Research downgraded shares of Astera Labs from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Royal Bank Of Canada dropped 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, November 4th. Finally, Citigroup cut Astera Labs from a “buy” rating to a “hold” rating in a research note on Friday, October 9th. Thirteen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $320.85.

Astera Labs Price Performance

The company has a market capitalization of $38.77 billion, a PE ratio of 88.38 and a beta of 3.85. The company’s 50 day simple moving average is $295.49 and its 200 day simple moving average is $256.83.

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, topping the consensus estimate of $1.19 by $0.13. The business had revenue of $584.90 million during the quarter, compared to the consensus estimate of $550.78 million. Astera Labs had a net margin of 29.64% and a return on equity of 25.35%. The company’s revenue was up 153.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.49 EPS. On average, equities analysts forecast that Astera Labs, Inc. will post 2.99 EPS for the current year.

Insider Activity at Astera Labs

In other Astera Labs news, CEO Jitendra Mohan sold 90,630 shares of the firm’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $340.35, for a total transaction of $30,845,920.50. Following the transaction, the chief executive officer owned 1,266,665 shares of the company’s stock, valued at approximately $431,109,432.75. This trade represents a 6.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Manuel Alba sold 183,000 shares of Astera Labs stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $280.13, for a total value of $51,263,790.00. Following the sale, the director owned 253,863 shares in the company, valued at $71,114,642.19. This trade represents a 41.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 408,558 shares of company stock valued at $126,050,884. Corporate insiders own 10.40% of the company’s stock.

Institutional Investors Weigh In On Astera Labs

A number of institutional investors and hedge funds have recently made changes to their positions in ALAB. BlackRock Inc. acquired a new stake in Astera Labs during the 2nd quarter worth approximately $6,609,581,000. ABS Investment Management LLC acquired a new position in shares of Astera Labs in the second quarter valued at approximately $1,980,382,000. Van ECK Associates Corp raised its stake in shares of Astera Labs by 20.0% during the second 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 last quarter. Bank of America Corp DE purchased a new stake in shares of Astera Labs during the second quarter worth approximately $1,061,791,000. Finally, Atreides Management LP acquired a new stake in shares of Astera Labs during the second quarter worth $587,736,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

Astera Labs Company Profile

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.