Astera Labs (NASDAQ:ALAB) Hits New 1-Year High After Better-Than-Expected Earnings

Shares of Astera Labs, Inc. (NASDAQ:ALAB) hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $164.80 and last traded at $166.86, with a volume of 365872 shares changing hands. The stock had previously closed at $135.54.

The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.11. Astera Labs had a net margin of 16.54% and a return on equity of 9.95%. The firm had revenue of $191.93 million during the quarter, compared to analysts’ expectations of $172.46 million. During the same period in the previous year, the company earned $0.13 earnings per share. The firm’s quarterly revenue was up 149.5% on a year-over-year basis.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Northland Securities lowered shares of Astera Labs from an “outperform” rating to a “market perform” rating and set a $120.00 target price for the company. in a research report on Tuesday, July 22nd. Susquehanna assumed coverage on shares of Astera Labs in a research report on Friday, May 16th. They set a “neutral” rating and a $80.00 target price for the company. Barclays boosted their target price on shares of Astera Labs from $70.00 to $75.00 and gave the company an “overweight” rating in a research report on Wednesday, May 7th. Morgan Stanley boosted their target price on shares of Astera Labs from $125.00 to $155.00 and gave the company an “overweight” rating in a research report on Wednesday. Finally, William Blair assumed coverage on shares of Astera Labs in a research report on Thursday, May 22nd. They set an “outperform” rating for the company. Four equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. According to MarketBeat.com, Astera Labs currently has a consensus rating of “Moderate Buy” and a consensus price target of $120.80.

Insider Buying and Selling

In related news, COO Sanjay Gajendra sold 165,000 shares of the company’s stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $98.25, for a total transaction of $16,211,250.00. Following the completion of the transaction, the chief operating officer owned 735,000 shares in the company, valued at approximately $72,213,750. This represents a 18.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jitendra Mohan sold 128,250 shares of the company’s stock in a transaction on Monday, May 19th. The stock was sold at an average price of $90.02, for a total transaction of $11,545,065.00. Following the transaction, the chief executive officer owned 541,125 shares of the company’s stock, valued at approximately $48,712,072.50. This represents a 19.16% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,941,759 shares of company stock worth $183,714,281.

Hedge Funds Weigh In On Astera Labs

A number of hedge funds and other institutional investors have recently modified their holdings of ALAB. Corebridge Financial Inc. grew its position in Astera Labs by 359.9% in the fourth quarter. Corebridge Financial Inc. now owns 814 shares of the company’s stock worth $108,000 after acquiring an additional 637 shares in the last quarter. Prudential Financial Inc. purchased a new stake in Astera Labs during the fourth quarter valued at approximately $632,000. Franklin Resources Inc. bought a new stake in shares of Astera Labs in the 4th quarter valued at approximately $12,581,000. National Bank of Canada FI boosted its holdings in shares of Astera Labs by 121.7% in the 4th quarter. National Bank of Canada FI now owns 541 shares of the company’s stock worth $72,000 after purchasing an additional 297 shares during the period. Finally, Geode Capital Management LLC increased its position in shares of Astera Labs by 94.5% during the 4th quarter. Geode Capital Management LLC now owns 865,377 shares of the company’s stock valued at $114,634,000 after purchasing an additional 420,490 shares during the last quarter. Institutional investors own 60.47% of the company’s stock.

Astera Labs Stock Performance

The company has a fifty day moving average of $102.68 and a two-hundred day moving average of $86.73. The company has a market cap of $28.76 billion, a PE ratio of 311.41, a price-to-earnings-growth ratio of 6.36 and a beta of 1.39.

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.