Astera Labs (NASDAQ:ALAB) Shares Gap Down Following Weak Earnings

Astera Labs, Inc. (NASDAQ:ALAB)’s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $103.29, but opened at $97.11. Astera Labs shares last traded at $102.26, with a volume of 2,875,092 shares traded.

The company reported $0.10 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.16). Astera Labs had a negative return on equity of 15.57% and a negative net margin of 30.69%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on ALAB. Stifel Nicolaus lifted their target price on shares of Astera Labs from $100.00 to $150.00 and gave the stock a “buy” rating in a report on Monday, January 6th. Craig Hallum boosted their price objective on Astera Labs from $75.00 to $105.00 and gave the stock a “buy” rating in a research report on Tuesday, November 5th. Needham & Company LLC restated a “buy” rating and set a $140.00 target price on shares of Astera Labs in a research note on Tuesday. JPMorgan Chase & Co. lifted their price target on Astera Labs from $70.00 to $110.00 and gave the stock an “overweight” rating in a research report on Tuesday, November 5th. Finally, Roth Mkm increased their price objective on Astera Labs from $80.00 to $105.00 and gave the company a “buy” rating in a research report on Tuesday, November 5th. One research analyst has rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $113.67.

Insider Buying and Selling at Astera Labs

In other news, CEO Jitendra Mohan sold 171,064 shares of the company’s stock in a transaction dated 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 of the company’s stock, valued at approximately $65,109,499.35. This represents a 21.38 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Philip Mazzara sold 2,513 shares of the stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $90.81, for a total transaction of $228,205.53. Following the sale, the general counsel now owns 248,745 shares of the company’s stock, valued at $22,588,533.45. This trade represents a 1.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 846,452 shares of company stock valued at $86,427,256 in the last 90 days.

Hedge Funds Weigh In On Astera Labs

A number of institutional investors and hedge funds have recently bought and sold shares of ALAB. FMR LLC raised its holdings in shares of Astera Labs by 0.7% in the third quarter. FMR LLC now owns 23,504,038 shares of the company’s stock valued at $1,231,377,000 after buying an additional 153,491 shares during the last quarter. Fred Alger Management LLC raised its stake in shares of Astera Labs by 1,361.0% in the third quarter. Fred Alger Management LLC now owns 2,821,921 shares of the company’s stock worth $147,840,000 after acquiring an additional 2,628,765 shares during the last quarter. Jennison Associates LLC acquired a new position in shares of Astera Labs during the fourth quarter worth approximately $229,991,000. JPMorgan Chase & Co. grew its stake in shares of Astera Labs by 3.1% during the third quarter. JPMorgan Chase & Co. now owns 1,568,314 shares of the company’s stock valued at $82,164,000 after purchasing an additional 47,569 shares during the last quarter. Finally, Maverick Capital Ltd. increased its holdings in shares of Astera Labs by 16.0% in the third quarter. Maverick Capital Ltd. now owns 1,156,230 shares of the company’s stock valued at $60,575,000 after purchasing an additional 159,480 shares in the last quarter. Institutional investors and hedge funds own 60.47% of the company’s stock.

Astera Labs Stock Down 3.9 %

The firm’s 50-day moving average is $122.39 and its two-hundred day moving average is $82.55.

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.