Astera Labs (NASDAQ:ALAB) Shares Down 6.2% – Here’s Why

Shares of Astera Labs, Inc. (NASDAQ:ALAB) fell 6.2% on Wednesday . The company traded as low as $169.90 and last traded at $169.32. 761,192 shares traded hands during trading, a decline of 84% from the average session volume of 4,826,776 shares. The stock had previously closed at $180.56.

Wall Street Analyst Weigh In

ALAB has been the topic of a number of analyst reports. Royal Bank Of Canada assumed coverage on shares of Astera Labs in a report on Wednesday. They issued an “outperform” rating and a $225.00 price objective on the stock. JPMorgan Chase & Co. lifted their price target on Astera Labs from $180.00 to $215.00 and gave the stock an “overweight” rating in a research report on Wednesday, November 5th. Northland Securities increased their price objective on Astera Labs from $175.00 to $195.00 and gave the company an “outperform” rating in a report on Tuesday, December 9th. Barclays set a $165.00 target price on shares of Astera Labs in a report on Thursday. Finally, BNP Paribas Exane began coverage on shares of Astera Labs in a research report on Thursday, November 20th. They issued an “outperform” rating and a $225.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, Astera Labs presently has an average rating of “Moderate Buy” and an average target price of $190.63.

Astera Labs Trading Up 4.3%

The company’s 50 day moving average price is $159.47 and its 200 day moving average price is $165.12. The company has a market cap of $30.74 billion, a price-to-earnings ratio of 163.96, a PEG ratio of 2.35 and a beta of 1.50.

Astera Labs (NASDAQ:ALAB) last announced its earnings results on Tuesday, November 4th. The company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.10. Astera Labs had a net margin of 27.50% and a return on equity of 13.48%. The firm had revenue of $230.58 million during the quarter, compared to the consensus estimate of $206.42 million. During the same quarter in the previous year, the company posted $0.23 EPS. The firm’s revenue for the quarter was up 103.9% on a year-over-year basis. Astera Labs has set its Q4 2025 guidance at 0.50-0.510 EPS. Sell-side analysts predict that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Activity

In related news, General Counsel Philip Mazzara sold 4,620 shares of Astera Labs stock in a transaction on Monday, November 17th. The shares were sold at an average price of $144.69, for a total transaction of $668,467.80. Following the sale, the general counsel owned 147,040 shares of the company’s stock, valued at $21,275,217.60. The trade was a 3.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Michael Truett Tate sold 11,430 shares of the business’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $144.69, for a total transaction of $1,653,806.70. Following the sale, the chief financial officer owned 192,297 shares of the company’s stock, valued at approximately $27,823,452.93. The trade was a 5.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 576,936 shares of company stock worth $87,409,540 in the last quarter. Insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Astera Labs

A number of institutional investors have recently bought and sold shares of ALAB. Hoey Investments Inc. boosted its position in Astera Labs by 22.4% during the 2nd quarter. Hoey Investments Inc. now owns 6,121 shares of the company’s stock valued at $553,000 after buying an additional 1,121 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its position in shares of Astera Labs by 21.6% in the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 14,781 shares of the company’s stock worth $1,336,000 after purchasing an additional 2,624 shares during the last quarter. Wealth Effects LLC bought a new position in Astera Labs in the 2nd quarter valued at approximately $242,000. Maryland State Retirement & Pension System lifted its position in Astera Labs by 37.7% during the second quarter. Maryland State Retirement & Pension System now owns 6,960 shares of the company’s stock valued at $629,000 after purchasing an additional 1,906 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in shares of Astera Labs by 94.6% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 109,576 shares of the company’s stock worth $9,908,000 after buying an additional 53,276 shares during the last quarter. 60.47% of the stock is currently owned by institutional investors and hedge funds.

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.