Astera Labs (NASDAQ:ALAB) Shares Gap Up – Still a Buy?

Astera Labs, Inc. (NASDAQ:ALAB) gapped up before the market opened on Tuesday . The stock had previously closed at $83.16, but opened at $88.82. Astera Labs shares last traded at $88.95, with a volume of 1,866,216 shares trading hands.

Wall Street Analysts Forecast Growth

ALAB has been the topic of a number of recent analyst reports. Stifel Nicolaus raised their price target on shares of Astera Labs from $100.00 to $150.00 and gave the company a “buy” rating in a report on Monday, January 6th. Needham & Company LLC reaffirmed a “buy” rating and set a $65.00 price target on shares of Astera Labs in a report on Wednesday, October 9th. JPMorgan Chase & Co. raised their price target on shares of Astera Labs from $70.00 to $110.00 and gave the company an “overweight” rating in a report on Tuesday, November 5th. Northland Securities raised shares of Astera Labs from a “market perform” rating to an “outperform” rating and set a $120.00 price target on the stock in a report on Tuesday. Finally, Craig Hallum raised their price target on shares of Astera Labs from $75.00 to $105.00 and gave the company a “buy” rating in a report on Tuesday, November 5th. Two investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat, Astera Labs has a consensus rating of “Moderate Buy” and an average target price of $107.42.

Astera Labs Trading Up 3.8 %

The firm’s 50-day moving average price is $122.86 and its 200-day moving average price is $79.28.

Astera Labs (NASDAQ:ALAB) last released its quarterly earnings data on Monday, November 4th. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.06. The firm had revenue of $113.10 million for the quarter, compared to analysts’ expectations of $97.50 million. Astera Labs had a negative net margin of 30.69% and a negative return on equity of 15.57%. The company’s revenue was up 47.1% on a year-over-year basis. On average, sell-side analysts expect that Astera Labs, Inc. will post -0.45 EPS for the current year.

Insider Activity

In related news, CEO Jitendra Mohan sold 171,064 shares of the business’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $103.53, for a total value of $17,710,255.92. Following the sale, the chief executive officer now owns 628,895 shares in the company, valued at approximately $65,109,499.35. The trade was a 21.38 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Sanjay Gajendra sold 740,000 shares of the business’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $96.59, for a total transaction of $71,476,600.00. Following the completion of the sale, the insider now owns 775,000 shares in the company, valued at $74,857,250. This represents a 48.84 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,690,452 shares of company stock worth $167,581,256 over the last quarter.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Sumitomo Mitsui Trust Group Inc. purchased a new position in Astera Labs during the fourth quarter worth $1,285,000. Elemental Capital Partners LLC purchased a new position in Astera Labs during the fourth quarter worth $1,346,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in Astera Labs during the fourth quarter worth $159,000. Calamos Advisors LLC purchased a new position in Astera Labs during the fourth quarter worth $1,693,000. Finally, Renaissance Capital LLC boosted its stake in Astera Labs by 381.0% during the fourth quarter. Renaissance Capital LLC now owns 114,276 shares of the company’s stock worth $15,136,000 after buying an additional 90,516 shares during the period. 60.47% of the stock is owned by hedge funds and other institutional investors.

Astera Labs Company Profile

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.