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

Astera Labs, Inc. (NASDAQ:ALAB)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $83.16, but opened at $88.82. Astera Labs shares last traded at $88.95, with a volume of 1,866,216 shares changing hands.

Analyst Ratings Changes

ALAB has been the subject of several recent research reports. JPMorgan Chase & Co. increased their price objective on Astera Labs from $70.00 to $110.00 and gave the stock an “overweight” rating in a report on Tuesday, November 5th. Stifel Nicolaus raised their price target on Astera Labs from $100.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday, January 6th. Craig Hallum boosted their price target on Astera Labs from $75.00 to $105.00 and gave the company a “buy” rating in a research note on Tuesday, November 5th. Roth Mkm increased their price objective on Astera Labs from $80.00 to $105.00 and gave the stock a “buy” rating in a report on Tuesday, November 5th. Finally, Northland Securities upgraded shares of Astera Labs from a “market perform” rating to an “outperform” rating and set a $120.00 target price for the company in a research note on Tuesday. One equities research analyst has rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Astera Labs has an average rating of “Buy” and an average price target of $107.42.

Astera Labs Trading Up 0.9 %

The business has a fifty day moving average price of $122.75 and a 200 day moving average price of $79.52.

Astera Labs (NASDAQ:ALAB) last issued its quarterly earnings results on Monday, November 4th. The company reported $0.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.06. Astera Labs had a negative net margin of 30.69% and a negative return on equity of 15.57%. The firm had revenue of $113.10 million during the quarter, compared to the consensus estimate of $97.50 million. The firm’s revenue for the quarter was up 47.1% on a year-over-year basis. Equities research analysts anticipate that Astera Labs, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling

In related news, Director Manuel Alba sold 11,000 shares of the firm’s stock in a transaction on Wednesday, December 4th. The stock was sold at an average price of $117.50, for a total value of $1,292,500.00. Following the completion of the transaction, the director now directly owns 456,863 shares of the company’s stock, valued at $53,681,402.50. This trade represents a 2.35 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Sanjay Gajendra sold 740,000 shares of the business’s stock in a transaction on Thursday, November 7th. The shares were sold at an average price of $96.59, for a total transaction of $71,476,600.00. Following the completion of the sale, the insider now directly owns 775,000 shares in the company, valued at $74,857,250. This trade represents a 48.84 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,690,452 shares of company stock valued at $167,581,256 over the last three months.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fred Alger Management LLC grew its stake in shares of Astera Labs by 1,361.0% in the 3rd quarter. Fred Alger Management LLC now owns 2,821,921 shares of the company’s stock valued at $147,840,000 after purchasing an additional 2,628,765 shares during the period. Jennison Associates LLC bought a new stake in Astera Labs in the fourth quarter valued at $229,991,000. Westfield Capital Management Co. LP acquired a new position in Astera Labs during the third quarter worth $52,049,000. The Manufacturers Life Insurance Company lifted its holdings in shares of Astera Labs by 15,477.8% during the third quarter. The Manufacturers Life Insurance Company now owns 879,055 shares of the company’s stock valued at $46,054,000 after acquiring an additional 873,412 shares during the period. Finally, Spyglass Capital Management LLC acquired a new stake in shares of Astera Labs in the 3rd quarter valued at $38,565,000. Institutional investors own 60.47% of the company’s stock.

Astera Labs Company Profile

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.