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

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price 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%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on ALAB shares. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Astera Labs from $60.00 to $100.00 and gave the stock a "buy" rating in a research note on Tuesday, November 5th. Needham & Company LLC restated a "buy" rating and issued a $140.00 price target on shares of Astera Labs in a research note on Tuesday. Stifel Nicolaus raised their price target 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. Northland Capmk upgraded shares of Astera Labs from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, January 28th. Finally, Morgan Stanley dropped their target price 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. One equities research analyst has rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Astera Labs has a consensus rating of "Buy" and an average price target of $115.33.

Insider Transactions at Astera Labs

In other news, CEO Jitendra Mohan sold 171,064 shares of the company's stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $103.53, for a total value 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 $65,109,499.35. This represents a 21.38 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Manuel Alba sold 11,000 shares of the company's stock in a transaction on Wednesday, December 4th. The stock was sold at an average price of $117.50, for a total transaction of $1,292,500.00. Following the completion of the sale, the director now owns 456,863 shares of the company's stock, valued at approximately $53,681,402.50. The trade was a 2.35 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 846,452 shares of company stock worth $86,427,256 in the last quarter.

Hedge Funds Weigh In On Astera Labs

Institutional investors have recently added to or reduced their stakes in the stock. Whittier Trust Co. of Nevada Inc. bought a new position in Astera Labs during the fourth quarter valued at about $25,000. Steward Partners Investment Advisory LLC grew 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 valued at $26,000 after buying an additional 99 shares during the period. Kestra Investment Management LLC bought a new position in Astera Labs during the fourth quarter valued at about $28,000. Geneos Wealth Management Inc. bought a new position in Astera Labs during the fourth quarter valued at about $36,000. Finally, Global Retirement Partners LLC grew its position in Astera Labs by 3,155.6% during the fourth quarter. Global Retirement Partners LLC now owns 293 shares of the company's stock valued at $39,000 after buying an additional 284 shares during the period. Institutional investors own 60.47% of the company's stock.

Astera Labs Trading Down 0.6 %

The company's 50-day moving average is $120.82 and its two-hundred day moving average is $82.93.

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.