Astera Labs (NASDAQ:ALAB) Shares Gap Down – Should You Sell?

Astera Labs, Inc. (NASDAQ:ALAB) shares gapped down before the market opened on Tuesday . The stock had previously closed at $175.74, but opened at $164.09. Astera Labs shares last traded at $168.45, with a volume of 1,883,714 shares.

Wall Street Analyst Weigh In

ALAB has been the subject of several recent research reports. BNP Paribas Exane assumed coverage on Astera Labs in a research report on Thursday, November 20th. They set an “outperform” rating and a $225.00 price target for the company. Zacks Research downgraded Astera Labs from a “strong-buy” rating to a “hold” rating in a report on Monday, October 6th. Needham & Company LLC boosted their price objective on shares of Astera Labs from $205.00 to $220.00 and gave the stock a “buy” rating in a research note on Wednesday, November 5th. Morgan Stanley reissued an “overweight” rating and issued a $210.00 price objective on shares of Astera Labs in a research report on Wednesday, December 3rd. Finally, Barclays restated an “equal weight” rating and issued a $155.00 price target on shares of Astera Labs in a report on Monday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $188.17.

Astera Labs Price Performance

The firm’s fifty day moving average price is $169.55 and its 200-day moving average price is $152.10. The company has a market cap of $28.62 billion, a price-to-earnings ratio of 152.76, a P/E/G ratio of 3.00 and a beta of 1.52.

Astera Labs (NASDAQ:ALAB) last posted its earnings results on Tuesday, November 4th. The company reported $0.49 EPS for the quarter, beating the consensus estimate of $0.39 by $0.10. The firm had revenue of $230.58 million for the quarter, compared to analysts’ expectations of $206.42 million. Astera Labs had a return on equity of 13.48% and a net margin of 27.50%.The firm’s revenue was up 103.9% compared to the same quarter last year. During the same period last year, the firm earned $0.23 EPS. Astera Labs has set its Q4 2025 guidance at 0.50-0.510 EPS. As a group, equities analysts forecast 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, COO Sanjay Gajendra sold 90,459 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $144.69, for a total transaction of $13,088,512.71. Following the transaction, the chief operating officer directly owned 1,599,750 shares of the company’s stock, valued at approximately $231,467,827.50. The trade was a 5.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Manuel Alba sold 150,000 shares of Astera Labs stock in a transaction on Monday, December 1st. The shares were sold at an average price of $166.18, for a total value of $24,927,000.00. Following the sale, the director directly owned 1,574,498 shares of the company’s stock, valued at approximately $261,650,077.64. The trade was a 8.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 586,936 shares of company stock valued at $89,331,140 over the last three months. 12.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Value Aligned Research Advisors LLC boosted its stake in Astera Labs by 16.7% during the 3rd quarter. Value Aligned Research Advisors LLC now owns 1,378,351 shares of the company’s stock valued at $269,881,000 after purchasing an additional 197,320 shares during the period. Allworth Financial LP lifted its stake in Astera Labs by 16.3% during the third quarter. Allworth Financial LP now owns 3,038 shares of the company’s stock worth $595,000 after purchasing an additional 426 shares during the period. IFP Advisors Inc boosted its holdings in Astera Labs by 11.2% during the third quarter. IFP Advisors Inc now owns 4,599 shares of the company’s stock valued at $900,000 after purchasing an additional 464 shares in the last quarter. Swiss Life Asset Management Ltd grew its stake in shares of Astera Labs by 78.8% in the 3rd quarter. Swiss Life Asset Management Ltd now owns 6,052 shares of the company’s stock valued at $1,185,000 after purchasing an additional 2,668 shares during the period. Finally, Polar Asset Management Partners Inc. acquired a new position in shares of Astera Labs in the 3rd quarter worth approximately $349,000. Institutional investors and hedge funds own 60.47% of the company’s stock.

About Astera Labs

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.