Astera Labs (NASDAQ:ALAB) Shares Down 4% – Should You Sell?

Astera Labs, Inc. (NASDAQ:ALAB) shares traded down 4% during trading on Wednesday . The stock traded as low as $244.61 and last traded at $249.74. 5,321,471 shares traded hands during trading, a decline of 4% from the average session volume of 5,536,849 shares. The stock had previously closed at $260.23.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ALAB. Citigroup restated a “buy” rating on shares of Astera Labs in a research report on Wednesday. Roth Capital reiterated a “buy” rating and set a $275.00 target price on shares of Astera Labs in a research note on Wednesday, May 6th. Susquehanna lifted their price objective on shares of Astera Labs from $230.00 to $275.00 and gave the company a “neutral” rating in a research report on Friday. Evercore reaffirmed an “outperform” rating and issued a $297.00 target price on shares of Astera Labs in a report on Tuesday, May 19th. Finally, Weiss Ratings upgraded shares of Astera Labs from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, May 21st. Thirteen equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $284.25.

Astera Labs Stock Performance

The firm has a market cap of $54.55 billion, a PE ratio of 214.14, a P/E/G ratio of 2.89 and a beta of 3.66. The stock’s fifty day moving average price is $359.89 and its 200-day moving average price is $229.21.

Astera Labs (NASDAQ:ALAB) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.07. The company had revenue of $308.36 million during the quarter, compared to the consensus estimate of $292.19 million. Astera Labs had a net margin of 26.72% and a return on equity of 18.49%. The company’s revenue for the quarter was up 93.5% on a year-over-year basis. During the same period last year, the firm earned $0.33 EPS. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. Sell-side analysts forecast that Astera Labs, Inc. will post 1.86 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Astera Labs news, Director Manuel Alba sold 136,974 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $442.01, for a total value of $60,543,877.74. Following the transaction, the director directly owned 1,287,524 shares in the company, valued at approximately $569,098,483.24. This represents a 9.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jitendra Mohan sold 139,951 shares of the firm’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $200.16, for a total transaction of $28,012,592.16. Following the sale, the chief executive officer owned 3,929,183 shares in the company, valued at approximately $786,465,269.28. This trade represents a 3.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,676,845 shares of company stock worth $444,928,806. Insiders own 10.40% of the company’s stock.

Institutional Investors Weigh In On Astera Labs

Several hedge funds have recently made changes to their positions in ALAB. Atreides Management LP increased its stake in Astera Labs by 108.9% in the first 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 last quarter. Amundi grew its holdings in Astera Labs by 1,298.6% in the 3rd quarter. Amundi now owns 1,421,263 shares of the company’s stock valued at $278,283,000 after buying an additional 1,319,643 shares during the period. Artisan Partners Limited Partnership purchased a new stake in Astera Labs in the 4th quarter valued at about $148,980,000. Goldman Sachs Group Inc. increased its stake in shares of Astera Labs by 189.0% during the 4th 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 during the last quarter. Finally, State Street Corp lifted its holdings in shares of Astera Labs by 32.5% during the 4th quarter. State Street Corp now owns 3,099,809 shares of the company’s stock worth $515,684,000 after acquiring an additional 760,358 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.