Astera Labs (NASDAQ:ALAB) Shares Gap Down on Disappointing Earnings

Shares of Astera Labs, Inc. (NASDAQ:ALAB) 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 changing hands.

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

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. JPMorgan Chase & Co. raised their price target on shares of Astera Labs from $70.00 to $110.00 and gave the stock an “overweight” rating in a research report on Tuesday, November 5th. Citigroup assumed coverage on shares of Astera Labs in a research report on Monday, November 18th. They set a “buy” rating and a $120.00 price target for the company. Craig Hallum raised their price target on shares of Astera Labs from $105.00 to $125.00 and gave the stock a “buy” rating in a research report on Tuesday. Deutsche Bank Aktiengesellschaft raised their price target on shares of Astera Labs from $60.00 to $100.00 and gave the stock a “buy” rating in a research report on Tuesday, November 5th. Finally, Northland Securities raised 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 report on Tuesday, January 28th. One 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 MarketBeat.com, Astera Labs currently has an average rating of “Buy” and a consensus price target of $115.33.

Insider Activity

In other Astera Labs news, General Counsel Philip Mazzara sold 2,513 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $90.81, for a total value of $228,205.53. Following the sale, the general counsel now directly owns 248,745 shares in the company, valued at approximately $22,588,533.45. The trade was a 1.00 % 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 171,064 shares of the business’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $103.53, for a total transaction of $17,710,255.92. Following the completion of the sale, the chief executive officer now owns 628,895 shares in the company, valued at approximately $65,109,499.35. This trade represents a 21.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 846,452 shares of company stock valued at $86,427,256.

Institutional Investors Weigh In On Astera Labs

Several hedge funds and other institutional investors have recently bought and sold shares of ALAB. Whittier Trust Co. of Nevada Inc. bought a new stake in Astera Labs in the fourth quarter worth about $25,000. Hollencrest Capital Management acquired a new stake in Astera Labs during the 3rd quarter worth about $26,000. Steward Partners Investment Advisory LLC grew its stake in 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 acquiring an additional 99 shares in the last quarter. Kestra Investment Management LLC purchased a new position in Astera Labs during the 4th quarter valued at about $28,000. Finally, Geneos Wealth Management Inc. purchased a new position in Astera Labs during the 4th quarter valued at about $36,000. 60.47% of the stock is currently owned by institutional investors.

Astera Labs Stock Performance

The company has a 50 day simple moving average of $121.90 and a two-hundred day simple moving average of $82.86.

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.