Astera Labs (NASDAQ:ALAB) Sets New 12-Month High – Still a Buy?

Shares of Astera Labs, Inc. (NASDAQ:ALAB) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $398.37 and last traded at $405.2750, with a volume of 825886 shares. The stock had previously closed at $374.68.

Analyst Ratings Changes

ALAB has been the topic of a number of research reports. Weiss Ratings upgraded Astera Labs from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, May 21st. Northland Securities lowered Astera Labs from an “outperform” rating to a “market perform” rating in a research report on Tuesday, May 26th. Citigroup cut Astera Labs from a “buy” rating to a “market perform” rating in a research note on Tuesday, May 26th. Evercore reaffirmed an “outperform” rating and set a $297.00 price target on shares of Astera Labs in a research report on Tuesday, May 19th. Finally, 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. Twelve analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $233.75.

Astera Labs Stock Performance

The company has a market cap of $72.00 billion, a P/E ratio of 284.30, a PEG ratio of 4.79 and a beta of 3.95. The company has a fifty day moving average price of $252.64 and a two-hundred day moving average price of $183.89.

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

Insider Activity at Astera Labs

In related news, General Counsel Philip Mazzara sold 796 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $291.03, for a total transaction of $231,659.88. Following the transaction, the general counsel directly owned 103,343 shares in the company, valued at approximately $30,075,913.29. The trade was a 0.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jitendra Mohan sold 28,737 shares of the company’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $249.62, for a total transaction of $7,173,329.94. Following the sale, the chief executive officer directly owned 3,789,232 shares in the company, valued at $945,868,091.84. This trade represents a 0.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 2,161,256 shares of company stock worth $459,844,296. Insiders own 10.40% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Royal Bank of Canada raised its holdings in shares of Astera Labs by 167.3% in the 1st quarter. Royal Bank of Canada now owns 152,453 shares of the company’s stock valued at $9,097,000 after purchasing an additional 95,409 shares during the period. AQR Capital Management LLC grew its holdings in Astera Labs by 213.4% during the first quarter. AQR Capital Management LLC now owns 11,391 shares of the company’s stock worth $680,000 after purchasing an additional 7,756 shares during the period. Empowered Funds LLC increased its position in Astera Labs by 917.3% during the first quarter. Empowered Funds LLC now owns 4,639 shares of the company’s stock worth $277,000 after buying an additional 4,183 shares during the last quarter. First Trust Advisors LP raised its stake in Astera Labs by 102.0% in the second quarter. First Trust Advisors LP now owns 112,766 shares of the company’s stock valued at $10,196,000 after buying an additional 56,952 shares during the period. Finally, Brown Advisory Inc. raised its stake in Astera Labs by 54.9% in the second quarter. Brown Advisory Inc. now owns 5,581 shares of the company’s stock valued at $505,000 after buying an additional 1,977 shares during the period. 60.47% of the stock is currently owned by institutional investors and hedge funds.

About Astera Labs

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.