Astera Labs (NASDAQ:ALAB) Trading Down 7.2% – Should You Sell?

Astera Labs, Inc. (NASDAQ:ALAB)’s stock price fell 7.2% on Monday . The company traded as low as $104.10 and last traded at $104.4090. 566,620 shares were traded during mid-day trading, a decline of 89% from the average session volume of 5,101,335 shares. The stock had previously closed at $112.47.

Analysts Set New Price Targets

A number of analysts have recently issued reports on ALAB shares. Loop Capital began coverage on Astera Labs in a research report on Thursday, March 5th. They set a “buy” rating and a $250.00 target price on the stock. Jefferies Financial Group reissued a “buy” rating on shares of Astera Labs in a report on Wednesday, December 3rd. Morgan Stanley restated an “overweight” rating and set a $210.00 price objective on shares of Astera Labs in a research note on Wednesday, December 3rd. Citigroup cut their target price on Astera Labs from $275.00 to $250.00 and set a “buy” rating on the stock in a research report on Wednesday, February 11th. Finally, Weiss Ratings downgraded shares of Astera Labs from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, February 23rd. Fifteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $202.22.

Astera Labs Stock Performance

The firm has a market capitalization of $16.79 billion, a P/E ratio of 80.39, a P/E/G ratio of 2.21 and a beta of 1.75. The stock has a fifty day moving average price of $138.30 and a two-hundred day moving average price of $162.90.

Astera Labs (NASDAQ:ALAB) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.07. Astera Labs had a return on equity of 16.12% and a net margin of 25.70%.The firm had revenue of $270.58 million for the quarter, compared to analysts’ expectations of $249.46 million. During the same period last year, the business posted $0.37 earnings per share. The firm’s revenue for the quarter was up 91.8% on a year-over-year basis. Astera Labs has set its Q1 2026 guidance at 0.530-0.540 EPS. As a group, research analysts anticipate that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, General Counsel Philip Mazzara sold 10,000 shares of the stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $117.47, for a total transaction of $1,174,700.00. Following the sale, the general counsel owned 128,084 shares in the company, valued at $15,046,027.48. This represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Michael Truett Tate sold 12,001 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $123.81, for a total transaction of $1,485,843.81. Following the completion of the transaction, the chief financial officer directly owned 192,083 shares in the company, valued at $23,781,796.23. This represents a 5.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 384,292 shares of company stock worth $48,724,919. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Astera Labs

Several hedge funds have recently made changes to their positions in ALAB. Hsbc Holdings PLC boosted its position in Astera Labs by 128.5% during the 4th quarter. Hsbc Holdings PLC now owns 83,721 shares of the company’s stock valued at $14,126,000 after purchasing an additional 47,081 shares during the period. Spear Advisors LLC bought a new position in Astera Labs in the 4th quarter worth about $15,787,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Astera Labs in the fourth quarter valued at approximately $75,000. Bank of Hawaii increased its stake in shares of Astera Labs by 12.7% in the fourth quarter. Bank of Hawaii now owns 28,580 shares of the company’s stock valued at $4,755,000 after purchasing an additional 3,221 shares during the period. Finally, Reflection Asset Management bought a new stake in shares of Astera Labs during the fourth quarter valued at approximately $25,000. Institutional investors own 60.47% of the company’s stock.

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.