Astera Labs (NASDAQ:ALAB) Trading 7.1% Higher – Should You Buy?

Astera Labs, Inc. (NASDAQ:ALAB) shares rose 7.1% on Thursday . The stock traded as high as $113.86 and last traded at $113.9090. Approximately 1,278,462 shares changed hands during trading, a decline of 75% from the average daily volume of 5,113,501 shares. The stock had previously closed at $106.33.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Citigroup assumed coverage on Astera Labs in a research report on Thursday. They issued a “buy” rating and a $200.00 price objective for the company. Jefferies Financial Group reaffirmed a “buy” rating on shares of Astera Labs in a research report on Wednesday, December 3rd. Northland Securities lifted their price objective on shares of Astera Labs from $175.00 to $195.00 and gave the company an “outperform” rating in a research note on Tuesday, December 9th. Weiss Ratings downgraded shares of Astera Labs from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, February 23rd. Finally, Barclays set a $165.00 target price on shares of Astera Labs in a research note on Thursday, January 15th. Fifteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $199.44.

Astera Labs Stock Up 7.0%

The stock has a market cap of $19.48 billion, a price-to-earnings ratio of 93.26, a PEG ratio of 2.16 and a beta of 1.78. The stock has a 50 day simple moving average of $133.79 and a 200 day simple moving average of $160.73.

Astera Labs (NASDAQ:ALAB) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.07. Astera Labs had a net margin of 25.70% and a return on equity of 16.12%. The business had revenue of $270.58 million during the quarter, compared to the consensus estimate of $249.46 million. During the same quarter last year, the firm posted $0.37 EPS. 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. Equities analysts expect that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Jitendra Mohan sold 157,500 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $131.58, for a total value of $20,723,850.00. Following the completion of the sale, the chief executive officer directly owned 4,531,732 shares of the company’s stock, valued at $596,285,296.56. This represents a 3.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jack R. Lazar sold 7,500 shares of the company’s stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $119.80, for a total value of $898,500.00. Following the sale, the director owned 87,351 shares of the company’s stock, valued at $10,464,649.80. This trade represents a 7.91% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 384,292 shares of company stock worth $48,724,919 in the last 90 days. Company insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Astera Labs

Hedge funds have recently bought and sold shares of the company. Hsbc Holdings PLC grew its stake in shares of Astera Labs by 128.5% in the 4th quarter. Hsbc Holdings PLC now owns 83,721 shares of the company’s stock worth $14,126,000 after acquiring an additional 47,081 shares in the last quarter. Spear Advisors LLC bought a new position in shares of Astera Labs during the fourth quarter valued at about $15,787,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Astera Labs during the fourth quarter worth about $75,000. Bank of Hawaii boosted its holdings in Astera Labs by 12.7% during the fourth quarter. Bank of Hawaii now owns 28,580 shares of the company’s stock worth $4,755,000 after purchasing an additional 3,221 shares during the last quarter. Finally, Reflection Asset Management bought a new stake in Astera Labs in the 4th quarter worth about $25,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

Astera Labs Company Profile

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.