Astera Labs (NASDAQ:ALAB) Shares Down 12.3% – Time to Sell?

Shares of Astera Labs, Inc. (NASDAQ:ALAB) traded down 12.3% during trading on Monday . The stock traded as low as $350.10 and last traded at $362.05. Approximately 6,242,200 shares were traded during mid-day trading, an increase of 10% from the average daily volume of 5,664,729 shares. The stock had previously closed at $412.97.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. JPMorgan Chase & Co. boosted their price target on shares of Astera Labs from $205.00 to $280.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Rothschild & Co Redburn began coverage on shares of Astera Labs in a research report on Friday, May 1st. They issued a “neutral” rating and a $153.00 price objective for the company. Bank of America lifted their price objective on Astera Labs from $240.00 to $450.00 and gave the company a “neutral” rating in a report on Tuesday, June 23rd. Evercore reiterated an “outperform” rating and set a $297.00 target price on shares of Astera Labs in a research report on Tuesday, May 19th. Finally, Northland Securities downgraded Astera Labs from an “outperform” rating to a “market perform” rating in a research note on Tuesday, May 26th. Twelve analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $275.75.

Astera Labs Stock Performance

The stock’s 50-day moving average price is $342.03 and its 200-day moving average price is $217.65. The company has a market capitalization of $62.01 billion, a price-to-earnings ratio of 244.45, a P/E/G ratio of 4.07 and a beta of 3.66.

Astera Labs (NASDAQ:ALAB) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.61 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.07. Astera Labs had a return on equity of 18.49% and a net margin of 26.72%.The business had revenue of $308.36 million for the quarter, compared to analysts’ expectations of $292.19 million. During the same quarter in the prior year, the firm posted $0.33 EPS. The company’s revenue was up 93.5% compared to the same quarter last year. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. Analysts anticipate that Astera Labs, Inc. will post 1.88 earnings per share for the current year.

Insider Activity at Astera Labs

In other news, Director Manuel Alba sold 8,491 shares of Astera Labs stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $458.38, for a total transaction of $3,892,104.58. Following the completion of the transaction, the director owned 286,863 shares of the company’s stock, valued at $131,492,261.94. The trade was a 2.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 686 shares of the business’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $395.04, for a total transaction of $270,997.44. Following the completion of the sale, the director owned 5,550 shares in the company, valued at $2,192,472. This represents a 11.00% decrease in their ownership of the stock. 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 sold 2,037,724 shares of company stock valued at $507,157,341 in the last 90 days. 10.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

Several hedge funds have recently added to or reduced their stakes in ALAB. Atreides Management LP grew its holdings in Astera Labs by 108.9% during the 1st quarter. Atreides Management LP now owns 3,365,787 shares of the company’s stock valued at $368,890,000 after buying an additional 1,754,593 shares during the last quarter. Amundi raised its holdings in shares of Astera Labs by 1,298.6% in the third quarter. Amundi now owns 1,421,263 shares of the company’s stock worth $278,283,000 after acquiring an additional 1,319,643 shares during the last quarter. Artisan Partners Limited Partnership acquired a new position in shares of Astera Labs in the fourth quarter worth $148,980,000. Goldman Sachs Group Inc. lifted its position in shares of Astera Labs by 189.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,312,927 shares of the company’s stock valued at $218,419,000 after acquiring an additional 858,693 shares in the last quarter. Finally, State Street Corp lifted its position in shares of Astera Labs by 32.5% in the fourth quarter. State Street Corp now owns 3,099,809 shares of the company’s stock valued at $515,684,000 after acquiring an additional 760,358 shares in the last quarter. 60.47% of the stock is currently owned by hedge funds and other institutional investors.

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.