Astera Labs (NASDAQ:ALAB) Trading Down 5.2% – Here’s Why

Astera Labs, Inc. (NASDAQ:ALAB) shares dropped 5.2% on Wednesday . The stock traded as low as $68.06 and last traded at $68.44. Approximately 572,943 shares changed hands during trading, a decline of 84% from the average daily volume of 3,659,110 shares. The stock had previously closed at $72.19.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on ALAB. Northland Capmk upgraded shares of Astera Labs from a “hold” rating to a “strong-buy” rating in a report on Tuesday, January 28th. Barclays lifted their price target on Astera Labs from $87.00 to $135.00 and gave the company an “overweight” rating in a research note on Friday, January 17th. Northland Securities upgraded Astera Labs from a “market perform” rating to an “outperform” rating and set a $120.00 target price on the stock in a report on Tuesday, January 28th. Raymond James assumed coverage on Astera Labs in a research report on Friday, March 14th. They set an “outperform” rating and a $82.00 target price on the stock. Finally, Craig Hallum increased their price target on Astera Labs from $105.00 to $125.00 and gave the company a “buy” rating in a research report on Tuesday, February 11th. One equities research analyst has rated the stock with a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $112.77.

Astera Labs Stock Down 6.2 %

The firm’s 50-day simple moving average is $86.45 and its 200 day simple moving average is $89.68. The firm has a market cap of $10.18 billion and a P/E ratio of -36.29.

Astera Labs (NASDAQ:ALAB) last posted its quarterly earnings data on Monday, February 10th. The company reported $0.10 EPS 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%. As a group, analysts forecast that Astera Labs, Inc. will post 0.34 earnings per share for the current year.

Insider Transactions at Astera Labs

In other Astera Labs news, Director Michael E. Hurlston sold 2,500 shares of the stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $92.08, for a total transaction of $230,200.00. Following the sale, the director now owns 91,794 shares in the company, valued at $8,452,391.52. This represents a 2.65 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Michael Truett Tate sold 125,800 shares of the business’s stock in a transaction on Wednesday, February 26th. The shares were sold at an average price of $82.53, for a total value of $10,382,274.00. Following the sale, the chief financial officer now owns 244,242 shares in the company, valued at approximately $20,157,292.26. The trade was a 34.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 570,990 shares of company stock worth $50,242,702.

Hedge Funds Weigh In On Astera Labs

Several hedge funds have recently bought and sold shares of ALAB. Vanguard Group Inc. raised its holdings in shares of Astera Labs by 354.9% in the 4th quarter. Vanguard Group Inc. now owns 9,211,630 shares of the company’s stock valued at $1,220,080,000 after acquiring an additional 7,186,582 shares in the last quarter. Alliancebernstein L.P. grew its stake in Astera Labs by 2,328.5% in the 4th quarter. Alliancebernstein L.P. now owns 3,922,278 shares of the company’s stock worth $519,506,000 after buying an additional 3,760,765 shares in the last quarter. Fred Alger Management LLC increased its holdings in shares of Astera Labs by 1,361.0% in the 3rd quarter. Fred Alger Management LLC now owns 2,821,921 shares of the company’s stock worth $147,840,000 after buying an additional 2,628,765 shares during the last quarter. JPMorgan Chase & Co. raised its position in shares of Astera Labs by 50.5% during the 4th quarter. JPMorgan Chase & Co. now owns 2,360,467 shares of the company’s stock valued at $312,644,000 after buying an additional 792,153 shares in the last quarter. Finally, Lord Abbett & CO. LLC lifted its holdings in shares of Astera Labs by 318.9% during the 4th quarter. Lord Abbett & CO. LLC now owns 1,818,600 shares of the company’s stock worth $240,873,000 after acquiring an additional 1,384,498 shares during the last quarter. Hedge funds and other institutional investors 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.