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

Shares of 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 trading hands.

Analysts Set New Price Targets

ALAB has been the subject of several recent research reports. Craig Hallum upped their price target on Astera Labs from $105.00 to $125.00 and gave the stock a “buy” rating in a report on Tuesday, February 11th. Citigroup assumed coverage on Astera Labs in a research note on Monday, November 18th. They set a “buy” rating and a $120.00 price target for the company. Barclays lifted their price objective on shares of Astera Labs from $87.00 to $135.00 and gave the company an “overweight” rating in a research note on Friday, January 17th. Northland Capmk upgraded Astera Labs from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 28th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $140.00 price target on shares of Astera Labs in a research report on Tuesday, February 11th. One equities research analyst has rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $115.33.

Astera Labs Stock Performance

The company has a market capitalization of $10.25 billion and a PE ratio of -36.52. The company’s 50-day moving average is $107.61 and its 200 day moving average is $87.09.

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

Insider Activity

In other news, CEO Jitendra Mohan sold 350,680 shares of the 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 transaction, the chief executive officer now directly owns 2,353,655 shares of the company’s stock, valued at $210,675,659.05. This represents a 12.97 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Philip Mazzara sold 50,000 shares of the firm’s stock in a transaction dated Thursday, February 20th. The stock was sold at an average price of $87.46, for a total value of $4,373,000.00. Following the completion of the transaction, the general counsel now directly owns 191,209 shares in the company, valued at $16,723,139.14. The trade was a 20.73 % 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.

Institutional Trading of Astera Labs

Several hedge funds have recently bought and sold shares of ALAB. Steward Partners Investment Advisory LLC lifted its position in shares of Astera Labs by 99.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 199 shares of the company’s stock valued at $26,000 after buying an additional 99 shares in the last quarter. Whittier Trust Co. of Nevada Inc. bought a new position in Astera Labs in the 4th quarter worth $25,000. Kestra Investment Management LLC purchased a new stake in Astera Labs in the 4th quarter worth $28,000. GAMMA Investing LLC raised its holdings in Astera Labs by 78.3% during the fourth quarter. GAMMA Investing LLC now owns 510 shares of the company’s stock valued at $68,000 after acquiring an additional 224 shares during the period. Finally, CIBC Asset Management Inc boosted its stake in shares of Astera Labs by 5.2% in the fourth quarter. CIBC Asset Management Inc now owns 4,757 shares of the company’s stock worth $630,000 after acquiring an additional 237 shares during the period. Institutional investors own 60.47% of the company’s stock.

Astera Labs Company Profile

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.