Astera Labs (NASDAQ:ALAB) Shares Down 6.6% – Should You Sell?

Shares of Astera Labs, Inc. (NASDAQ:ALAB) traded down 6.6% during mid-day trading on Monday . The stock traded as low as $316.00 and last traded at $320.09. 5,504,045 shares changed hands during trading, a decline of 1% from the average session volume of 5,547,917 shares. The stock had previously closed at $342.85.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ALAB. JPMorgan Chase & Co. boosted their target price on Astera Labs from $205.00 to $280.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Royal Bank Of Canada boosted their target price on Astera Labs from $250.00 to $270.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 6th. Susquehanna boosted their target price on Astera Labs from $155.00 to $230.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Roth Mkm reaffirmed a “buy” rating and set a $275.00 target price on shares of Astera Labs in a research report on Wednesday, May 6th. Finally, 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. Twelve investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, Astera Labs presently has a consensus rating of “Moderate Buy” and a consensus target price of $233.75.

Astera Labs Stock Down 6.6%

The stock has a market capitalization of $54.87 billion, a price-to-earnings ratio of 216.28, a price-to-earnings-growth ratio of 4.54 and a beta of 3.94. The firm has a 50-day moving average of $190.82 and a two-hundred day moving average of $165.06.

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

Insider Buying and Selling at Astera Labs

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the business’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $107.61, for a total value of $19,692,630.00. Following the transaction, the director owned 319,863 shares in the company, valued at $34,420,457.43. The trade was a 36.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jitendra Mohan sold 325,693 shares of the business’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $172.14, for a total value of $56,064,793.02. Following the completion of the transaction, the chief executive officer owned 4,079,322 shares in the company, valued at $702,214,489.08. This trade represents a 7.39% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 2,306,257 shares of company stock worth $473,685,936 over the last 90 days. 10.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Astera Labs

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in shares of Astera Labs by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 13,827,506 shares of the company’s stock valued at $2,300,344,000 after purchasing an additional 84,365 shares during the period. Atreides Management LP raised its stake in shares of Astera Labs by 108.9% in the 1st quarter. Atreides Management LP now owns 3,365,787 shares of the company’s stock valued at $368,890,000 after purchasing an additional 1,754,593 shares during the period. State Street Corp raised its stake in shares of Astera Labs by 32.5% in the 4th quarter. State Street Corp now owns 3,099,809 shares of the company’s stock valued at $515,684,000 after purchasing an additional 760,358 shares during the period. Geode Capital Management LLC raised its stake in shares of Astera Labs by 4.5% in the 4th quarter. Geode Capital Management LLC now owns 2,429,078 shares of the company’s stock valued at $403,598,000 after purchasing an additional 104,935 shares during the period. Finally, Fred Alger Management LLC raised its stake in shares of Astera Labs by 25.5% in the 4th quarter. Fred Alger Management LLC now owns 1,934,688 shares of the company’s stock valued at $321,855,000 after purchasing an additional 393,250 shares during the period. Institutional investors and hedge funds 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.