Astera Labs (NASDAQ:ALAB) Shares Up 12.4% – Still a Buy?

Astera Labs, Inc. (NASDAQ:ALAB)’s share price rose 12.4% on Monday. The company traded as high as $214.90 and last traded at $214.33. 1,401,966 shares were traded during mid-day trading, a decline of 73% from the average daily volume of 5,132,619 shares. The stock had previously closed at $190.71.

Analyst Ratings Changes

Several brokerages have recently issued reports on ALAB. BMO Capital Markets began coverage on shares of Astera Labs in a research report on Thursday. They set an “outperform” rating and a $375.00 target price on the stock. Barclays upped their price objective on Astera Labs from $200.00 to $325.00 and gave the company an “equal weight” rating in a research report on Monday, July 20th. Wall Street Zen raised Astera Labs from a “hold” rating to a “buy” rating in a research note on Saturday. UBS Group lowered their price objective on Astera Labs from $300.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, November 4th. Finally, Morgan Stanley lifted their target price on Astera Labs from $382.00 to $389.00 and gave the stock an “overweight” rating in a report on Wednesday, November 4th. Thirteen investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $320.85.

Astera Labs Stock Up 12.8%

The company’s 50 day moving average price is $300.46 and its two-hundred day moving average price is $255.80. The firm has a market cap of $37.61 billion, a PE ratio of 85.97 and a beta of 3.86.

Astera Labs (NASDAQ:ALAB) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $1.32 EPS for the quarter, topping analysts’ consensus estimates of $1.19 by $0.13. Astera Labs had a net margin of 29.64% and a return on equity of 25.35%. The firm had revenue of $584.90 million during the quarter, compared to analysts’ expectations of $550.78 million. During the same period in the previous year, the company earned $0.49 EPS. The firm’s revenue for the quarter was up 153.6% compared to the same quarter last year. On average, analysts expect that Astera Labs, Inc. will post 2.71 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Astera Labs news, COO Sanjay Gajendra sold 90,630 shares of the firm’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $340.35, for a total value of $30,845,920.50. Following the completion of the sale, the chief operating officer owned 1,119,038 shares of the company’s stock, valued at $380,864,583.30. This trade represents a 7.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 the business’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $280.13, for a total value of $51,263,790.00. Following the transaction, the director owned 253,863 shares of the company’s stock, valued at $71,114,642.19. This trade represents a 41.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 396,059 shares of company stock valued at $123,408,470 over the last quarter. Corporate insiders own 10.40% of the company’s stock.

Hedge Funds Weigh In On Astera Labs

A number of large investors have recently bought and sold shares of ALAB. AlTi Global Inc. boosted its holdings in shares of Astera Labs by 1.1% in the 3rd quarter. AlTi Global Inc. now owns 5,977 shares of the company’s stock valued at $2,128,000 after buying an additional 67 shares during the period. Danica Pension Livsforsikringsaktieselskab bought a new position in Astera Labs in the third quarter worth about $794,000. Danske Bank A S lifted its holdings in Astera Labs by 9.4% in the third quarter. Danske Bank A S now owns 75,605 shares of the company’s stock worth $26,913,000 after acquiring an additional 6,505 shares during the last quarter. Drive Wealth Management LLC boosted its stake in Astera Labs by 68.8% in the third quarter. Drive Wealth Management LLC now owns 1,065 shares of the company’s stock valued at $379,000 after acquiring an additional 434 shares during the period. Finally, Diversified Trust Co boosted its stake in Astera Labs by 303.8% in the third quarter. Diversified Trust Co now owns 2,100 shares of the company’s stock valued at $748,000 after acquiring an additional 1,580 shares during the period. Hedge funds and other institutional investors own 60.47% of the company’s stock.

About Astera Labs

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.

Founded in 2017 and headquartered in Santa Clara, California, Astera Labs serves the global cloud and computing markets.