Astera Labs (NASDAQ:ALAB) Trading Down 7.2% – Should You Sell?

Astera Labs, Inc. (NASDAQ:ALAB) was down 7.2% on Monday . The stock traded as low as $104.10 and last traded at $104.4090. Approximately 566,620 shares were traded during trading, a decline of 89% from the average daily volume of 5,101,335 shares. The stock had previously closed at $112.47.

Analyst Upgrades and Downgrades

Several analysts have commented on ALAB shares. Barclays set a $165.00 price objective on shares of Astera Labs in a research note on Thursday, January 15th. Morgan Stanley restated an “overweight” rating and issued a $210.00 target price on shares of Astera Labs in a report on Wednesday, December 3rd. Citigroup dropped their price target on shares of Astera Labs from $275.00 to $250.00 and set a “buy” rating for the company in a research report on Wednesday, February 11th. Royal Bank Of Canada initiated coverage on shares of Astera Labs in a report on Wednesday, January 14th. They issued an “outperform” rating and a $225.00 price target on the stock. Finally, Jefferies Financial Group reissued a “buy” rating on shares of Astera Labs in a research note on Wednesday, December 3rd. Fifteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $202.22.

Astera Labs Trading Down 12.8%

The stock’s 50-day moving average is $138.30 and its 200-day moving average is $162.90. The stock has a market cap of $16.79 billion, a price-to-earnings ratio of 80.39, a P/E/G ratio of 2.21 and a beta of 1.75.

Astera Labs (NASDAQ:ALAB) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.51 by $0.07. Astera Labs had a net margin of 25.70% and a return on equity of 16.12%. The firm had revenue of $270.58 million for the quarter, compared to analysts’ expectations of $249.46 million. During the same period in the previous year, the company posted $0.37 earnings per share. Astera Labs’s revenue was up 91.8% compared to the same quarter last year. Astera Labs has set its Q1 2026 guidance at 0.530-0.540 EPS. On average, equities analysts predict that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Astera Labs

In related news, General Counsel Philip Mazzara sold 10,000 shares of the company’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $117.47, for a total transaction of $1,174,700.00. Following the completion of the sale, the general counsel directly owned 128,084 shares of the company’s stock, valued at approximately $15,046,027.48. This represents a 7.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Sanjay Gajendra sold 94,971 shares of the stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $123.81, for a total value of $11,758,359.51. Following the completion of the sale, the chief operating officer owned 1,531,301 shares of the company’s stock, valued at approximately $189,590,376.81. This represents a 5.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 384,292 shares of company stock worth $48,724,919. Corporate insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Astera Labs

Several hedge funds have recently modified their holdings of ALAB. Royal Bank of Canada grew its position in Astera Labs by 167.3% in the first quarter. Royal Bank of Canada now owns 152,453 shares of the company’s stock valued at $9,097,000 after acquiring an additional 95,409 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of Astera Labs by 213.4% in the first quarter. AQR Capital Management LLC now owns 11,391 shares of the company’s stock valued at $680,000 after purchasing an additional 7,756 shares during the period. Empowered Funds LLC grew its holdings in Astera Labs by 917.3% during the 1st quarter. Empowered Funds LLC now owns 4,639 shares of the company’s stock valued at $277,000 after purchasing an additional 4,183 shares in the last quarter. Creative Planning increased its stake in Astera Labs by 37.6% during the 2nd quarter. Creative Planning now owns 13,368 shares of the company’s stock worth $1,209,000 after buying an additional 3,656 shares during the period. Finally, Cetera Investment Advisers increased its stake in Astera Labs by 167.1% during the 2nd quarter. Cetera Investment Advisers now owns 9,131 shares of the company’s stock worth $826,000 after buying an additional 5,712 shares during the period. 60.47% of the stock is currently owned by hedge funds and other institutional investors.

About Astera Labs

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.