Astera Labs (NASDAQ:ALAB) Shares Up 3.4% – Should You Buy?

Astera Labs, Inc. (NASDAQ:ALAB) was up 3.4% during trading on Monday. The company traded as high as $365.24 and last traded at $362.34. 3,232,048 shares changed hands during trading, a decline of 38% from the average daily volume of 5,184,580 shares. The stock had previously closed at $350.33.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ALAB. TD Cowen dropped their target price on shares of Astera Labs from $425.00 to $375.00 and set a “hold” rating for the company in a research report on Wednesday, August 5th. Morgan Stanley increased their price target on shares of Astera Labs to $335.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Barclays boosted their price objective on Astera Labs from $200.00 to $325.00 and gave the company an “equal weight” rating in a report on Monday, July 20th. Bank of America upped their price objective on Astera Labs from $240.00 to $450.00 and gave the company a “neutral” rating in a research note on Tuesday, June 23rd. Finally, UBS Group reaffirmed a “neutral” rating and set a $425.00 target price on shares of Astera Labs in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $348.33.

Astera Labs Price Performance

The stock’s fifty day simple moving average is $309.04 and its two-hundred day simple moving average is $283.09. The company has a market capitalization of $62.86 billion, a price-to-earnings ratio of 179.38 and a beta of 3.68.

Astera Labs (NASDAQ:ALAB) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.80 EPS for the quarter, beating the consensus estimate of $0.69 by $0.11. Astera Labs had a net margin of 30.74% and a return on equity of 19.24%. The business had revenue of $392.40 million during the quarter, compared to analyst estimates of $360.85 million. During the same period in the previous year, the business posted $0.44 EPS. The company’s quarterly revenue was up 104.5% on a year-over-year basis. Astera Labs has set its Q3 2026 guidance at 1.160-1.210 EPS. On average, sell-side analysts predict that Astera Labs, Inc. will post 2.7 EPS for the current year.

Insider Buying and Selling

In related news, COO Sanjay Gajendra sold 90,630 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $340.35, for a total transaction of $30,845,920.50. Following the completion of the transaction, the chief operating officer owned 1,119,038 shares in the company, valued at $380,864,583.30. The trade was a 7.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jitendra Mohan sold 90,630 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $340.35, for a total value of $30,845,920.50. Following the transaction, the chief executive officer owned 1,266,665 shares of the company’s stock, valued at $431,109,432.75. This represents a 6.68% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 396,059 shares of company stock valued at $122,605,660 over the last 90 days. 10.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Astera Labs

Several hedge funds and other institutional investors have recently modified their holdings of ALAB. BlackRock Inc. bought a new stake in Astera Labs in the 2nd quarter valued at about $6,609,581,000. ABS Investment Management LLC bought a new stake in shares of Astera Labs during the second quarter valued at approximately $1,980,382,000. Van ECK Associates Corp grew its holdings in Astera Labs by 20.0% in the 2nd quarter. Van ECK Associates Corp now owns 2,237,961 shares of the company’s stock worth $1,080,980,000 after buying an additional 373,545 shares in the last quarter. Bank of America Corp DE bought a new position in Astera Labs in the 2nd quarter worth approximately $1,061,791,000. Finally, Atreides Management LP acquired a new stake in Astera Labs in the 2nd quarter valued at approximately $587,736,000. Institutional investors and hedge funds own 60.47% of the company’s stock.

Astera Labs Company Profile

Astera Labs, Inc is a fabless semiconductor company that develops connectivity solutions for cloud and artificial intelligence infrastructure. Its products are designed to help data centers connect and manage processors, memory, storage, and networking components in high-performance computing systems.

The company’s portfolio includes Aries PCI Express and Compute Express Link (CXL) smart memory controllers, Scorpio PCIe switches, Taurus Ethernet fabric switches, and Leo CXL memory connectivity products.