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

Astera Labs, Inc. (NASDAQ:ALAB) gapped down before the market opened on Thursday . The stock had previously closed at $68.57, but opened at $64.34. Astera Labs shares last traded at $65.11, with a volume of 788,125 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ALAB. Stifel Nicolaus boosted their price objective on shares of Astera Labs from $100.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday, January 6th. Morgan Stanley decreased their target price on Astera Labs from $142.00 to $114.00 and set an “equal weight” rating for the company in a research note on Tuesday, January 28th. Citigroup started coverage on Astera Labs in a research report on Monday, November 18th. They issued a “buy” rating and a $120.00 price target on the stock. Northland Capmk raised Astera Labs from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 28th. Finally, Craig Hallum upped their target price on shares of Astera Labs from $105.00 to $125.00 and gave the company a “buy” rating in a research note on Tuesday, February 11th. One equities research analyst has rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $115.33.

Astera Labs Stock Up 5.4 %

The company has a market capitalization of $10.85 billion and a P/E ratio of -38.68. The stock has a fifty day simple moving average of $104.47 and a 200-day simple moving average of $87.11.

Astera Labs (NASDAQ:ALAB) last released its quarterly earnings results on Monday, February 10th. The company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.16). Astera Labs had a negative return on equity of 10.40% and a negative net margin of 21.05%. Analysts predict that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Michael Truett Tate sold 125,800 shares of Astera Labs stock in a transaction dated Wednesday, February 26th. The stock was sold at an average price of $82.53, for a total transaction of $10,382,274.00. Following the transaction, the chief financial officer now owns 244,242 shares in the company, valued at $20,157,292.26. The trade was a 34.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Jitendra Mohan sold 350,680 shares of the company’s stock in a transaction on Wednesday, February 19th. The stock was sold at an average price of $89.51, for a total transaction of $31,389,366.80. Following the completion of the transaction, the chief executive officer now directly owns 2,353,655 shares of the company’s stock, valued at approximately $210,675,659.05. The trade was a 12.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 570,990 shares of company stock valued at $50,242,702 in the last 90 days.

Hedge Funds Weigh In On Astera Labs

A number of large investors have recently bought and sold shares of the company. Tidal Investments LLC boosted its holdings in Astera Labs by 81.8% during the third quarter. Tidal Investments LLC now owns 45,298 shares of the company’s stock worth $2,373,000 after purchasing an additional 20,388 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new stake in Astera Labs in the 3rd quarter valued at $530,000. Avior Wealth Management LLC bought a new stake in Astera Labs in the 3rd quarter valued at $361,000. Maverick Capital Ltd. lifted its holdings in Astera Labs by 16.0% during the 3rd quarter. Maverick Capital Ltd. now owns 1,156,230 shares of the company’s stock valued at $60,575,000 after purchasing an additional 159,480 shares during the last quarter. Finally, Bank of Hawaii bought a new position in shares of Astera Labs in the third quarter valued at about $1,409,000. 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.