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

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report) shares 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 return on equity of 15.57% and a negative net margin of 30.69%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on ALAB shares. 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 report on Tuesday, November 5th. Morgan Stanley cut their price objective on shares of Astera Labs from $142.00 to $114.00 and set an "equal weight" rating for the company in a report on Tuesday, January 28th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Astera Labs from $60.00 to $100.00 and gave the stock a "buy" rating in a report on Tuesday, November 5th. Northland Capmk upgraded Astera Labs from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, January 28th. Finally, Northland Securities upgraded Astera Labs from a "market perform" rating to an "outperform" rating and set a $120.00 price objective on the stock in a research note on Tuesday, January 28th. One equities research analyst has rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $115.33.

Insiders Place Their Bets

In related news, Director Stefan A. Dyckerhoff sold 197,297 shares of the business's stock in a transaction on Monday, November 18th. The shares were sold at an average price of $90.51, for a total value of $17,857,351.47. Following the sale, the director now owns 6,148 shares of the company's stock, valued at $556,455.48. The trade was a 96.98 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Michael Truett Tate sold 7,398 shares of the firm'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 $671,812.38. Following the transaction, the chief financial officer now owns 286,424 shares of the company's stock, valued at $26,010,163.44. This trade represents a 2.52 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 846,452 shares of company stock valued at $86,427,256.

Institutional Investors Weigh In On Astera Labs

Large investors have recently added to or reduced their stakes in the business. Tidal Investments LLC grew its holdings in Astera Labs by 81.8% in the third quarter. Tidal Investments LLC now owns 45,298 shares of the company's stock worth $2,373,000 after purchasing an additional 20,388 shares during the period. Point72 Asia Singapore Pte. Ltd. bought a new stake in Astera Labs during the third quarter worth $530,000. Avior Wealth Management LLC purchased a new stake in Astera Labs in the 3rd quarter valued at $361,000. Maverick Capital Ltd. lifted its stake in Astera Labs by 16.0% during the 3rd quarter. Maverick Capital Ltd. now owns 1,156,230 shares of the company's stock valued at $60,575,000 after acquiring an additional 159,480 shares in the last quarter. Finally, Bank of Hawaii purchased a new position in Astera Labs during the 3rd quarter worth $1,409,000. Institutional investors and hedge funds own 60.47% of the company's stock.

Astera Labs Stock Down 0.4 %

The company's 50 day moving average price is $120.17 and its 200-day moving average price is $83.22.

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.