Astera Labs (NASDAQ:ALAB) Shares Gap Down - Should You Sell?

Astera Labs, Inc. (NASDAQ:ALAB - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $60.08, but opened at $56.56. Astera Labs shares last traded at $58.60, with a volume of 388,120 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on ALAB shares. Morgan Stanley lowered their price target on Astera Labs from $142.00 to $114.00 and set an "equal weight" rating for the company in a report on Tuesday, January 28th. Needham & Company LLC reaffirmed a "buy" rating and issued a $140.00 price target on shares of Astera Labs in a report on Tuesday, February 11th. Northland Securities raised 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. Raymond James began coverage on Astera Labs in a research report on Friday, March 14th. They set an "outperform" rating and a $82.00 price target for the company. Finally, Barclays raised their price objective on Astera Labs from $87.00 to $135.00 and gave the stock an "overweight" rating in a research note on Friday, January 17th. One equities research 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, Astera Labs has an average rating of "Buy" and an average price target of $109.25.

Astera Labs Stock Down 7.7 %

The firm has a market capitalization of $8.82 billion and a PE ratio of -31.46. The stock has a 50-day moving average price of $69.23 and a 200 day moving average price of $91.42.

Astera Labs (NASDAQ:ALAB - Get Free Report) last posted its quarterly earnings data on Monday, February 10th. The company reported $0.10 earnings per share for the quarter, missing analysts' consensus estimates of $0.26 by ($0.16). Astera Labs had a negative return on equity of 10.40% and a negative net margin of 21.05%. As a group, equities analysts predict that Astera Labs, Inc. will post 0.34 earnings per share for the current fiscal year.

Insider Transactions at Astera Labs

In related news, General Counsel Philip Mazzara sold 50,000 shares of the stock in a transaction that occurred on Thursday, February 20th. The stock was sold at an average price of $87.46, for a total value of $4,373,000.00. Following the completion of the sale, the general counsel now owns 191,209 shares of the company's stock, valued at approximately $16,723,139.14. This trade represents a 20.73 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Jitendra Mohan sold 350,680 shares of the business's stock in a transaction dated Wednesday, February 19th. The shares were sold at an average price of $89.51, for a total transaction of $31,389,366.80. Following the transaction, the chief executive officer now directly owns 2,353,655 shares in the company, valued at approximately $210,675,659.05. The trade was a 12.97 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 633,990 shares of company stock valued at $54,235,012 over the last ninety days.

Institutional Trading of Astera Labs

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its position in Astera Labs by 354.9% in the fourth quarter. Vanguard Group Inc. now owns 9,211,630 shares of the company's stock worth $1,220,080,000 after acquiring an additional 7,186,582 shares during the period. Alliancebernstein L.P. raised its holdings in Astera Labs by 2,328.5% in the 4th quarter. Alliancebernstein L.P. now owns 3,922,278 shares of the company's stock valued at $519,506,000 after buying an additional 3,760,765 shares during the period. Jennison Associates LLC acquired a new position in Astera Labs in the fourth quarter valued at about $229,991,000. Lord Abbett & CO. LLC boosted its stake in Astera Labs by 318.9% during the fourth quarter. Lord Abbett & CO. LLC now owns 1,818,600 shares of the company's stock worth $240,873,000 after buying an additional 1,384,498 shares during the period. Finally, Norges Bank acquired a new stake in shares of Astera Labs during the fourth quarter valued at about $179,229,000. Institutional investors and hedge funds own 60.47% of the company's stock.

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.