Astera Labs (NASDAQ:ALAB) Trading Down 8.3% – Should You Sell?

Astera Labs, Inc. (NASDAQ:ALAB) dropped 8.3% during trading on Tuesday . The stock traded as low as $80.51 and last traded at $77.59. Approximately 571,876 shares were traded during mid-day trading, a decline of 89% from the average daily volume of 5,340,729 shares. The stock had previously closed at $84.63.

Analyst Ratings Changes

Several research firms have weighed in on ALAB. Roth Mkm lifted 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. Northland Capmk raised shares of Astera Labs from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 28th. Barclays upped their price target on Astera Labs from $87.00 to $135.00 and gave the company an “overweight” rating in a report on Friday, January 17th. Stifel Nicolaus upped their target price on shares of Astera Labs from $100.00 to $150.00 and gave the company a “buy” rating in a research note on Monday, January 6th. Finally, Northland Securities upgraded shares of Astera Labs from a “market perform” rating to an “outperform” rating and set a $120.00 price target for the company in a research note on Tuesday, January 28th. One equities research analyst has rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $115.33.

Astera Labs Price Performance

The stock has a market cap of $12.52 billion and a PE ratio of -44.91. The firm has a 50 day moving average of $115.81 and a two-hundred day moving average of $85.79.

Astera Labs (NASDAQ:ALAB) last issued its earnings results on Monday, February 10th. The company reported $0.10 earnings per share (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, equities analysts anticipate that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Jitendra Mohan sold 350,680 shares of the stock in a transaction dated Wednesday, February 19th. The shares were sold at an average price of $89.51, for a total value of $31,389,366.80. Following the sale, the chief executive officer now directly owns 2,353,655 shares of the company’s stock, valued at approximately $210,675,659.05. This represents a 12.97 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Philip Mazzara sold 50,000 shares of the stock in a transaction on Thursday, February 20th. The stock was sold at an average price of $87.46, for a total transaction of $4,373,000.00. Following the completion of the sale, the general counsel now directly owns 191,209 shares of the company’s stock, valued at $16,723,139.14. The trade was a 20.73 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 702,190 shares of company stock worth $66,714,568.

Hedge Funds Weigh In On Astera Labs

Several hedge funds and other institutional investors have recently made changes to their positions in ALAB. Ameriflex Group Inc. purchased a new position in Astera Labs in the fourth quarter valued at about $144,000. Warm Springs Advisors Inc. purchased a new stake in shares of Astera Labs during the 4th quarter valued at about $3,311,000. GF Fund Management CO. LTD. purchased a new position in Astera Labs in the 4th quarter worth approximately $265,000. Public Employees Retirement System of Ohio grew its position in Astera Labs by 364.3% in the fourth quarter. Public Employees Retirement System of Ohio now owns 37,145 shares of the company’s stock valued at $4,920,000 after acquiring an additional 29,145 shares in the last quarter. Finally, Pacific Point Advisors LLC acquired a new stake in Astera Labs in the fourth quarter valued at approximately $530,000. Institutional investors and hedge funds own 60.47% of the company’s stock.

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.