Astera Labs (NASDAQ:ALAB) Stock Falls 9.2% – Should You Sell?

Astera Labs, Inc. (NASDAQ:ALAB) shares traded down 9.2% on Thursday. The company traded as low as $342.54 and last traded at $347.05. Approximately 6,413,945 shares changed hands during mid-day trading, an increase of 23% from the average session volume of 5,196,890 shares. The stock had previously closed at $382.25.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. TD Cowen lowered their price objective on Astera Labs from $425.00 to $375.00 and set a “hold” rating for the company in a research note on Wednesday, August 5th. Stifel Nicolaus increased their target price on Astera Labs from $260.00 to $460.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Weiss Ratings restated a “hold (c)” rating on shares of Astera Labs in a report on Tuesday, August 18th. Morgan Stanley raised their price target on Astera Labs to $335.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. Finally, Roth Capital reaffirmed a “buy” rating and issued a $450.00 price target on shares of Astera Labs in a research report on Wednesday, August 5th. Twelve analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, Astera Labs presently has an average rating of “Moderate Buy” and an average target price of $348.33.

Astera Labs Trading Down 9.2%

The firm has a market capitalization of $60.21 billion, a PE ratio of 171.81 and a beta of 3.68. The firm has a 50 day simple moving average of $315.87 and a 200 day simple moving average of $288.40.

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

Insider Buying and Selling

In other Astera Labs news, Director Stefan Dyckerhoff sold 8,994 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $274.96, for a total value of $2,472,990.24. Following the completion of the transaction, the director owned 3,309 shares of the company’s stock, valued at approximately $909,842.64. The trade was a 73.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Sanjay Gajendra sold 90,630 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $340.35, for a total transaction of $30,845,920.50. Following the transaction, the chief operating officer owned 1,119,038 shares in the company, valued at $380,864,583.30. This represents a 7.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 396,059 shares of company stock worth $122,605,660 in the last three months. 10.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Banque Cantonale Vaudoise grew its holdings in Astera Labs by 85.9% during the first quarter. Banque Cantonale Vaudoise now owns 6,990 shares of the company’s stock valued at $766,000 after purchasing an additional 3,229 shares during the period. Amazon Com Inc. purchased a new stake in Astera Labs in the second quarter worth about $134,172,000. Edgestream Partners L.P. bought a new position in shares of Astera Labs in the first quarter worth about $1,891,000. Lido Advisors LLC raised its stake in shares of Astera Labs by 123.4% in the first quarter. Lido Advisors LLC now owns 27,477 shares of the company’s stock worth $3,012,000 after buying an additional 15,180 shares during the period. Finally, Strs Ohio lifted its position in shares of Astera Labs by 996.3% during the 1st quarter. Strs Ohio now owns 33,086 shares of the company’s stock valued at $3,626,000 after buying an additional 30,068 shares in the last quarter. Institutional investors 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.