Astera Labs (NASDAQ:ALAB) Shares Gap Down After Earnings Miss

Astera Labs, Inc. (NASDAQ:ALAB)’s share price gapped down prior to trading 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

Several equities research analysts have commented on ALAB shares. Stifel Nicolaus upped their price objective on Astera Labs from $100.00 to $150.00 and gave the stock a “buy” rating in a research report on Monday, January 6th. Morgan Stanley dropped their price target on shares of Astera Labs from $142.00 to $114.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 28th. Roth Mkm upped their price objective on shares of Astera Labs from $80.00 to $105.00 and gave the stock a “buy” rating in a research report on Tuesday, November 5th. Northland Securities upgraded Astera Labs from a “market perform” rating to an “outperform” rating and set a $120.00 target price on the stock in a research report on Tuesday, January 28th. Finally, Craig Hallum upped their price target on Astera Labs from $105.00 to $125.00 and gave the stock a “buy” rating in a report on Tuesday. One research analyst has rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $115.33.

Insider Activity

In other Astera Labs news, CFO Michael Truett Tate sold 16,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $117.84, for a total value of $1,885,440.00. Following the transaction, the chief financial officer now directly owns 1,412,888 shares of the company’s stock, valued at $166,494,721.92. This trade represents a 1.12 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel Philip Mazzara sold 2,513 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $90.81, for a total value of $228,205.53. Following the transaction, the general counsel now owns 248,745 shares in the company, valued at approximately $22,588,533.45. This represents a 1.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 846,452 shares of company stock worth $86,427,256 over the last quarter.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ALAB. Whittier Trust Co. of Nevada Inc. purchased a new position in Astera Labs during the fourth quarter worth about $25,000. Hollencrest Capital Management acquired a new stake in shares of Astera Labs during the 3rd quarter worth approximately $26,000. Steward Partners Investment Advisory LLC raised its position in shares of Astera Labs by 99.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 199 shares of the company’s stock valued at $26,000 after buying an additional 99 shares during the period. Kestra Investment Management LLC acquired a new position in Astera Labs in the fourth quarter valued at approximately $28,000. Finally, Geneos Wealth Management Inc. purchased a new position in Astera Labs in the fourth quarter worth approximately $36,000. Hedge funds and other institutional investors own 60.47% of the company’s stock.

Astera Labs Stock Performance

The firm has a 50 day simple moving average of $122.39 and a 200-day simple moving average of $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.