Astera Labs (NASDAQ:ALAB) Price Target Cut to $225.00 by Analysts at TD Cowen

Astera Labs (NASDAQ:ALAB) had its price target trimmed by TD Cowen from $300.00 to $225.00 in a report published on Wednesday,Benzinga reports. The brokerage currently has a hold rating on the stock.

ALAB has been the topic of several other research reports. Roth Capital reiterated a “buy” rating and issued a $450.00 target price on shares of Astera Labs in a research report on Wednesday, August 5th. UBS Group reduced their price target on shares of Astera Labs from $300.00 to $290.00 and set a “neutral” rating for the company in a research report on Wednesday. Susquehanna decreased their price target on shares of Astera Labs from $310.00 to $258.00 and set a “neutral” rating on the stock in a research note on Wednesday. Morgan Stanley raised their price target on shares of Astera Labs from $382.00 to $389.00 and gave the company an “overweight” rating in a research note on Wednesday. Finally, Northland Securities upgraded Astera Labs from a “market perform” rating to an “outperform” rating and set a $315.00 price objective on the stock in a report on Wednesday. Twelve analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $318.00.

Astera Labs Trading Down 4.4%

Shares of ALAB opened at $223.27 on Wednesday. The firm has a market cap of $38.73 billion, a P/E ratio of 88.95 and a beta of 3.85. Astera Labs has a 12 month low of $97.89 and a 12 month high of $499.48. The stock’s 50 day moving average is $304.94 and its two-hundred day moving average is $255.78.

Astera Labs (NASDAQ:ALAB) last announced its earnings results on Tuesday, November 3rd. The company reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.19 by $0.13. The business had revenue of $584.90 million during the quarter, compared to the consensus estimate of $550.78 million. Astera Labs had a return on equity of 27.30% and a net margin of 29.64%. The business’s quarterly revenue was up 153.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.49 EPS. Equities research analysts forecast that Astera Labs will post 2.71 EPS for the current year.

Insider Activity at Astera Labs

In other news, CEO Jitendra Mohan sold 90,630 shares of the firm’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 completion of the transaction, the chief executive officer owned 1,266,665 shares of the company’s stock, valued at approximately $431,109,432.75. This trade represents a 6.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Manuel Alba sold 183,000 shares of Astera Labs stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $280.13, for a total transaction of $51,263,790.00. Following the completion of the transaction, the director owned 253,863 shares of the company’s stock, valued at $71,114,642.19. This trade represents a 41.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 396,059 shares of company stock valued at $123,408,470. 10.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Astera Labs

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

Key Stories Impacting Astera Labs

Here are the key news stories impacting Astera Labs this week:

• Positive Sentiment: Q3 earnings of $1.32 per share beat the $1.19 consensus, while revenue of $584.9 million exceeded estimates and rose 153.6% year over year. Scorpio switches, including the X-Series, were a key growth driver. Article: Astera Labs Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management forecast Q4 revenue of $730 million to $750 million, citing AI connectivity demand. Expansion into optical connectivity, memory and rack-scale AI systems may provide additional growth opportunities. Article: ALAB Q3 Earnings Call Highlights Scorpio Ramp and New Growth Engines
• Neutral Sentiment: Analyst opinions were mixed: Northland upgraded ALAB to Outperform and Morgan Stanley raised its price target, while several firms lowered targets; RBC maintained an Outperform rating. Article: Northland Securities stock recommendations
• Negative Sentiment: Shares fell despite the earnings beat, suggesting results and guidance may not have been enough to satisfy expectations. Analysts flagged a premium valuation, rising costs, reliance on a limited number of customers and competition—particularly Marvell’s optical push—as risks to future growth. Article: Astera Labs Stock Falls Despite Strong Earnings. Its Growth Story Is Intact.

About Astera Labs

Astera Labs, Inc is a semiconductor and connectivity solutions company that develops hardware and software for data centers, cloud computing, and artificial intelligence infrastructure. Its products are designed to help move data between processors, memory, storage, and networking components while addressing bandwidth, latency, and system-management requirements.

The company’s portfolio includes Aries PCI Express and Compute Express Link (CXL) Smart Retimers, Taurus Ethernet Smart Cable Modules, Scorpio Smart Fabric Switches, and Leo CXL Memory Connectivity Controllers.