Astera Labs (NASDAQ:ALAB) Given New $389.00 Price Target at Morgan Stanley

Astera Labs (NASDAQ:ALAB) had its price objective lifted by Morgan Stanley from $382.00 to $389.00 in a research note issued on Wednesday, Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Morgan Stanley‘s target price suggests a potential upside of 77.06% from the stock’s current price.

Other equities research analysts have also recently issued reports about the company. UBS Group reissued a “neutral” rating and set a $290.00 price target on shares of Astera Labs in a report on Wednesday. Royal Bank Of Canada cut their target price on shares of Astera Labs from $500.00 to $400.00 and set an “outperform” rating for the company in a report on Wednesday. Roth Capital reissued a “buy” rating and issued a $450.00 price target on shares of Astera Labs in a research note on Wednesday, August 5th. Jefferies Financial Group lifted their price objective on Astera Labs from $270.00 to $450.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Finally, TD Cowen dropped their price target on Astera Labs from $375.00 to $300.00 and set a “hold” rating on the stock in a research note on Monday, October 19th. Twelve research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $321.95.

Astera Labs Stock Down 6.0%

NASDAQ ALAB traded down $13.92 on Wednesday, hitting $219.70. The company’s stock had a trading volume of 4,936,739 shares, compared to its average volume of 5,097,504. Astera Labs has a 1-year low of $97.89 and a 1-year high of $499.48. The company’s 50-day moving average is $306.13 and its 200 day moving average is $255.53. The firm has a market cap of $38.12 billion, a PE ratio of 108.74 and a beta of 3.85.

Astera Labs (NASDAQ:ALAB) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported $1.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.13. The company had revenue of $584.90 million during the quarter, compared to analyst estimates of $550.78 million. Astera Labs had a net margin of 30.74% and a return on equity of 19.24%. Astera Labs’s quarterly revenue was up 153.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.49 EPS. On average, equities analysts expect that Astera Labs will post 2.71 EPS for the current year.

Insider Buying and Selling at Astera Labs

In other Astera Labs news, Director Manuel Alba sold 183,000 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $280.13, for a total transaction of $51,263,790.00. Following the completion of the sale, the director directly owned 253,863 shares in the company, valued at $71,114,642.19. This represents a 41.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jitendra Mohan sold 90,630 shares of Astera Labs stock in a transaction that occurred on 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 executive officer directly owned 1,266,665 shares in the company, valued at approximately $431,109,432.75. This trade represents a 6.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 408,558 shares of company stock worth $127,306,034. 10.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Astera Labs

Several institutional investors and hedge funds have recently bought and sold shares of the business. Greenleaf Trust grew its stake in Astera Labs by 1.8% during the 2nd quarter. Greenleaf Trust now owns 2,000 shares of the company’s stock worth $966,000 after buying an additional 36 shares during the last quarter. Parkside Financial Bank & Trust lifted its holdings in Astera Labs by 74.5% in the second quarter. Parkside Financial Bank & Trust now owns 96 shares of the company’s stock worth $46,000 after purchasing an additional 41 shares during the period. Integrated Advisors Network LLC raised its position in shares of Astera Labs by 4.8% during the 3rd quarter. Integrated Advisors Network LLC now owns 983 shares of the company’s stock worth $350,000 after buying an additional 45 shares in the last quarter. Interchange Capital Partners LLC lifted its position in Astera Labs by 4.4% in the third quarter. Interchange Capital Partners LLC now owns 1,187 shares of the company’s stock worth $423,000 after purchasing an additional 50 shares during the period. Finally, Glenmede Trust Co. NA raised its position in Astera Labs by 2.7% in the first quarter. Glenmede Trust Co. NA now owns 1,909 shares of the company’s stock worth $209,000 after acquiring an additional 51 shares in the last quarter. Institutional investors and hedge funds 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 revenue reached a record $584.9 million, up 154% year over year, while EPS of $1.32 topped the $1.19 consensus. Scorpio fabric switches became Astera’s largest product family, with volume production of the Scorpio X-Series driving growth. Astera Labs Q3 results
• Positive Sentiment: Management sees Q4 revenue of $730 million to $750 million and is pursuing additional growth in optical connectivity, memory and rack-scale AI systems. Northland Securities upgraded ALAB to “outperform” with a $315 target. Earnings call and growth highlights
• Neutral Sentiment: Analyst views diverged: Susquehanna cut its price target to $258 and kept a “neutral” rating, while Northland upgraded the shares. The split reflects uncertainty about the stock’s outlook even as business growth remains strong. Susquehanna rating
• Negative Sentiment: ALAB has fallen sharply from its 12-month high and recently broke below key technical levels. That momentum and the stock’s high valuation may help explain why investors have not fully rewarded the earnings and guidance beat. Recent share-price and technical weakness

Astera Labs Company Profile

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.