Astera Labs (NASDAQ:ALAB) Trading 8.2% Higher – Still a Buy?

Astera Labs, Inc. (NASDAQ:ALAB)’s stock price was up 8.2% during mid-day trading on Monday . The company traded as high as $174.58 and last traded at $174.3860. Approximately 3,571,148 shares changed hands during trading, a decline of 33% from the average daily volume of 5,367,371 shares. The stock had previously closed at $161.23.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on ALAB. Deutsche Bank Aktiengesellschaft increased their price target on shares of Astera Labs from $160.00 to $200.00 and gave the stock a “buy” rating in a research report on Tuesday, September 2nd. Weiss Ratings reiterated a “hold (c-)” rating on shares of Astera Labs in a report on Wednesday, October 8th. BNP Paribas assumed coverage on shares of Astera Labs in a research report on Thursday, November 20th. They issued an “outperform” rating for the company. Stifel Nicolaus boosted their price target on shares of Astera Labs from $185.00 to $200.00 and gave the stock a “buy” rating in a research note on Wednesday, November 5th. Finally, Zacks Research cut Astera Labs from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $188.17.

Astera Labs Trading Down 1.7%

The firm’s fifty day simple moving average is $168.38 and its 200 day simple moving average is $152.69. The company has a market cap of $27.75 billion, a price-to-earnings ratio of 148.04, a PEG ratio of 3.11 and a beta of 1.51.

Astera Labs (NASDAQ:ALAB) last released its quarterly earnings data on Tuesday, November 4th. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.10. The business had revenue of $230.58 million during the quarter, compared to analysts’ expectations of $206.42 million. Astera Labs had a net margin of 27.50% and a return on equity of 13.48%. The company’s revenue for the quarter was up 103.9% on a year-over-year basis. During the same period in the previous year, the company 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 year.

Insider Activity at Astera Labs

In other news, CEO Jitendra Mohan sold 90,459 shares of the company’s 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 completion of the transaction, the chief executive officer directly owned 2,080,418 shares of the company’s stock, valued at approximately $301,015,680.42. This represents a 4.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Sanjay Gajendra sold 90,459 shares of the stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $144.69, for a total value of $13,088,512.71. Following the completion of the transaction, the chief operating officer owned 1,599,750 shares in the company, valued at approximately $231,467,827.50. The trade was a 5.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 586,936 shares of company stock worth $89,331,140 over the last three months. Company insiders own 12.50% of the company’s stock.

Institutional Trading of Astera Labs

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ALAB. Fred Alger Management LLC lifted its stake in Astera Labs by 13.0% in the first quarter. Fred Alger Management LLC now owns 1,560,033 shares of the company’s stock valued at $93,087,000 after buying an additional 179,638 shares during the last quarter. Hoey Investments Inc. grew its position in shares of Astera Labs by 22.4% during the second quarter. Hoey Investments Inc. now owns 6,121 shares of the company’s stock worth $553,000 after acquiring an additional 1,121 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Astera Labs by 21.6% in the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 14,781 shares of the company’s stock valued at $1,336,000 after acquiring an additional 2,624 shares during the period. Wealth Effects LLC acquired a new position in shares of Astera Labs in the 2nd quarter valued at $242,000. Finally, Maryland State Retirement & Pension System raised its position in Astera Labs by 37.7% in the 2nd 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 and hedge funds own 60.47% of the company’s stock.

About Astera Labs

Astera Labs, Inc designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale.