Astera Labs (NASDAQ:ALAB) Shares Gap Down Following Analyst Downgrade

Astera Labs, Inc. (NASDAQ:ALAB) shares gapped down prior to trading on Wednesday after Citigroup lowered their price target on the stock from $275.00 to $250.00. The stock had previously closed at $182.86, but opened at $160.76. Citigroup currently has a buy rating on the stock. Astera Labs shares last traded at $144.7620, with a volume of 4,402,516 shares changing hands.

Other research analysts also recently issued reports about the stock. Stifel Nicolaus boosted their price objective on shares of Astera Labs from $185.00 to $200.00 and gave the company a “buy” rating in a research report on Wednesday, November 5th. BNP Paribas Exane started coverage on shares of Astera Labs in a report on Thursday, November 20th. They set an “outperform” rating on the stock. Jefferies Financial Group reiterated a “buy” rating on shares of Astera Labs in a report on Wednesday, December 3rd. Weiss Ratings restated a “hold (c-)” rating on shares of Astera Labs in a research note on Wednesday, January 21st. Finally, Roth Mkm upped their target price on Astera Labs from $200.00 to $225.00 and gave the stock a “buy” rating in a research report on Wednesday, November 5th. Fourteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Astera Labs currently has an average rating of “Moderate Buy” and an average target price of $192.89.

Insider Buying and Selling at Astera Labs

In related news, CEO Jitendra Mohan sold 90,459 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $144.69, for a total value of $13,088,512.71. Following the transaction, the chief executive officer directly owned 2,080,418 shares of the company’s stock, valued at approximately $301,015,680.42. This trade represents a 4.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Philip Mazzara sold 4,620 shares of the stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $144.69, for a total value of $668,467.80. Following the transaction, the general counsel owned 147,040 shares in the company, valued at approximately $21,275,217.60. This trade represents a 3.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 576,936 shares of company stock worth $87,409,540 in the last 90 days. Company insiders own 12.50% of the company’s stock.

Astera Labs News Summary

Here are the key news stories impacting Astera Labs this week:

• Positive Sentiment: Q4 beat on revenue and EPS with strong growth and margins — the company reported $270.6M revenue, 75.7% gross margin and an EPS beat, and management issued solid Q1 guidance that underscores hyperscaler demand. ALAB Q4 Earnings Beat (Zacks)
• Positive Sentiment: Wall‑street analysts still see upside tied to large AI infrastructure customers (NVIDIA, AMD, Amazon, Google) and JPMorgan highlighted Astera as a beneficiary of AI buildout. That underpins medium‑term demand expectations. JPMorgan Upside Note (Benzinga)
• Neutral Sentiment: Analysts/transcripts available — full earnings call transcript and Seeking Alpha pieces provide granular color on product ramps (Scorpio X) and margin trajectory; read if you need detail on guidance cadence into H2/2027. Earnings Analysis & Transcript (Seeking Alpha)
• Neutral Sentiment: Reported short‑interest entries appear to be data anomalies (values show 0 and NaN); no actionable evidence of a meaningful short squeeze or buildup from the published figures. Earnings Call Transcript (MSN)
• Negative Sentiment: Investors are booking profits after a massive run-up; several outlets flagged profit‑taking and a “rich” valuation as reasons for the selloff despite the beat. Profit‑Taking After Earnings (Seeking Alpha)
• Negative Sentiment: Concerns about concentration and deal terms: coverage highlighted Amazon’s reported $6.5B engagement as a “double‑edged sword” (big revenue opportunity but customer concentration/contract risk), which weighed on sentiment. Amazon Deal Concerns (MarketWatch)
• Negative Sentiment: CFO change and other corporate developments introduced near‑term uncertainty; several writeups linked management changes to the intra‑day weakness as investors reassessed execution risk. Slide After Earnings, CFO Change (Benzinga)

Institutional Investors Weigh In On Astera Labs

Hedge funds have recently bought and sold shares of the company. Sumitomo Mitsui Trust Group Inc. grew its position in Astera Labs by 21.6% in the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 14,781 shares of the company’s stock worth $1,336,000 after purchasing an additional 2,624 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Astera Labs by 94.6% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 109,576 shares of the company’s stock worth $9,908,000 after purchasing an additional 53,276 shares during the period. Vanguard Personalized Indexing Management LLC raised its position in shares of Astera Labs by 142.4% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 11,366 shares of the company’s stock valued at $1,028,000 after buying an additional 6,677 shares during the last quarter. Harbour Investments Inc. lifted its stake in shares of Astera Labs by 207.7% in the second quarter. Harbour Investments Inc. now owns 2,446 shares of the company’s stock valued at $221,000 after buying an additional 1,651 shares during the period. Finally, Bank of New York Mellon Corp grew its position in Astera Labs by 34.5% during the second quarter. Bank of New York Mellon Corp now owns 522,093 shares of the company’s stock worth $47,208,000 after buying an additional 133,961 shares in the last quarter. 60.47% of the stock is currently owned by institutional investors.

Astera Labs Stock Down 11.9%

The firm has a market capitalization of $21.38 billion, a price-to-earnings ratio of 103.75, a P/E/G ratio of 1.96 and a beta of 1.50. The business has a 50-day moving average of $164.73 and a two-hundred day moving average of $174.08.

Astera Labs (NASDAQ:ALAB) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.07. The company had revenue of $270.58 million for the quarter, compared to analyst estimates of $249.46 million. Astera Labs had a return on equity of 16.87% and a net margin of 25.70%.Astera Labs’s revenue for the quarter was up 91.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.37 EPS. Astera Labs has set its Q1 2026 guidance at 0.530-0.540 EPS. Equities analysts predict that Astera Labs, Inc. will post 0.34 EPS for the current fiscal year.

About Astera Labs

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company’s product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.