Astera Labs (NASDAQ:ALAB) Shares Gap Down – Here’s Why

Astera Labs, Inc. (NASDAQ:ALAB)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $172.62, but opened at $166.75. Astera Labs shares last traded at $166.49, with a volume of 448,751 shares.

Wall Street Analyst Weigh In

ALAB has been the topic of several recent research reports. Bank of America started coverage on Astera Labs in a report on Friday, October 3rd. They set a “neutral” rating and a $230.00 target price on the stock. Northland Capmk upgraded Astera Labs from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 17th. Wall Street Zen lowered Astera Labs from a “buy” rating to a “hold” rating in a research note on Tuesday, November 11th. Needham & Company LLC increased their target price on shares of Astera Labs from $205.00 to $220.00 and gave the company a “buy” rating in a research report on Wednesday, November 5th. Finally, Citigroup restated an “outperform” rating on shares of Astera Labs in a report on Tuesday, December 9th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $188.17.

Astera Labs Price Performance

The stock has a fifty day simple moving average of $159.50 and a two-hundred day simple moving average of $157.12. The firm has a market capitalization of $28.68 billion, a P/E ratio of 152.98, a P/E/G ratio of 3.15 and a beta of 1.51.

Astera Labs (NASDAQ:ALAB) last posted its quarterly earnings results on Tuesday, November 4th. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.10. The firm 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 company’s revenue for the quarter was up 103.9% compared to the same quarter last year. During the same period in the prior year, the business earned $0.23 EPS. Astera Labs has set its Q4 2025 guidance at 0.50-0.510 EPS. As a group, sell-side analysts expect that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

Insiders Place Their Bets

In other Astera Labs news, CFO Michael Truett Tate sold 11,430 shares of Astera Labs stock in a transaction 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 sale, the chief financial officer directly owned 192,297 shares of the company’s stock, valued at approximately $27,823,452.93. The trade was a 5.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Jitendra Mohan sold 90,459 shares of the stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $144.69, for a total transaction of $13,088,512.71. Following the transaction, the chief executive officer directly owned 2,080,418 shares in the company, valued at $301,015,680.42. This trade represents a 4.17% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 586,936 shares of company stock valued at $89,331,140. 12.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Astera Labs

Hedge funds and other institutional investors have recently bought and sold shares of the business. Fred Alger Management LLC raised its holdings in shares of Astera Labs by 13.0% in the 1st quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company’s stock valued at $93,087,000 after acquiring an additional 179,638 shares in the last quarter. Hoey Investments Inc. increased its position in shares of Astera Labs by 22.4% in the second quarter. Hoey Investments Inc. now owns 6,121 shares of the company’s stock worth $553,000 after purchasing an additional 1,121 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Astera Labs by 21.6% in the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 14,781 shares of the company’s stock worth $1,336,000 after purchasing an additional 2,624 shares during the last quarter. Wealth Effects LLC purchased a new stake in Astera Labs in the second quarter valued at approximately $242,000. Finally, Maryland State Retirement & Pension System lifted its position in Astera Labs by 37.7% during the second quarter. Maryland State Retirement & Pension System now owns 6,960 shares of the company’s stock valued at $629,000 after purchasing an additional 1,906 shares during the last quarter. Institutional investors own 60.47% of the company’s stock.

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.