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

Shares of Astera Labs, Inc. (NASDAQ:ALAB) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. 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 changing hands.

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 30.69% and a negative return on equity of 15.57%.

Wall Street Analyst Weigh In

ALAB has been the topic of several recent analyst reports. Northland Capmk upgraded Astera Labs from a “hold” rating to a “strong-buy” rating in a report on Tuesday, January 28th. Barclays lifted their price objective on Astera Labs from $87.00 to $135.00 and gave the company an “overweight” rating in a report on Friday, January 17th. Deutsche Bank Aktiengesellschaft increased their target price on Astera Labs from $60.00 to $100.00 and gave the stock a “buy” rating in a research note on Tuesday, November 5th. Craig Hallum lifted their price target on shares of Astera Labs from $75.00 to $105.00 and gave the company a “buy” rating in a research note on Tuesday, November 5th. Finally, Needham & Company LLC reissued a “buy” rating and set a $140.00 price objective on shares of Astera Labs in a research report on Tuesday. One investment analyst has rated the stock with a hold rating, eleven have given a buy rating and one has assigned 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 an average target price of $113.67.

Insider Buying and Selling at Astera Labs

In related news, CEO Jitendra Mohan sold 171,064 shares of Astera Labs stock in a transaction dated Thursday, November 21st. The stock was 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. The trade was a 21.38 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, General Counsel Philip Mazzara sold 2,513 shares of the company’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $90.81, for a total value of $228,205.53. Following the sale, the general counsel now owns 248,745 shares in the company, valued at $22,588,533.45. The trade was a 1.00 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 846,452 shares of company stock worth $86,427,256.

Hedge Funds Weigh In On Astera Labs

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Steward Partners Investment Advisory LLC raised its position in Astera Labs by 99.0% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 199 shares of the company’s stock worth $26,000 after acquiring an additional 99 shares in the last quarter. Kestra Investment Management LLC acquired a new position in shares of Astera Labs during the 4th quarter worth about $28,000. Geneos Wealth Management Inc. bought a new stake in shares of Astera Labs in the 4th quarter valued at about $36,000. Global Retirement Partners LLC lifted its stake in Astera Labs by 3,155.6% in the 4th quarter. Global Retirement Partners LLC now owns 293 shares of the company’s stock valued at $39,000 after purchasing an additional 284 shares during the last quarter. Finally, ORG Wealth Partners LLC bought a new position in Astera Labs during the fourth quarter worth about $42,000. 60.47% of the stock is owned by institutional investors.

Astera Labs Trading Down 3.9 %

The business has a 50-day simple moving average of $122.39 and a two-hundred day simple moving average of $82.55.

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.