Astera Labs (NASDAQ:ALAB) Reports Quarterly Earnings, Falls Short of Expectations

Astera Labs (NASDAQ:ALAB) announced its latest quarterly earnings on Monday, revealing a performance that did not meet market expectations. The company reported earnings per share (EPS) of $0.10 for the quarter. This figure was $0.16 lower than the consensus estimate of $0.26, as reported by analysts at Zacks. Alongside these earnings, Astera Labs reported a concerning negative return on equity of 15.57%, alongside a negative net margin of 30.69%. In response to this financial update, Astera Labs has adjusted its Q1 2025 guidance for earnings to fall within the range of $0.280 to $0.290 per share.

Stock Performance Overview

Following the earnings announcement, Astera Labs' stock saw a modest increase, rising by $2.00 to reach $103.29. On that day, a total of 9,960,510 shares were traded, significantly surpassing the company's average trading volume of 5,059,615 shares. The stock has a 50-day moving average of $122.39 and a 200-day moving average of $82.15. Over the past year, Astera Labs has experienced fluctuations, with a 52-week low recorded at $36.22 and a high of $147.39.

Insider Transactions at Astera Labs

In related news concerning insider trading, Philip Mazzara, General Counsel of Astera Labs, sold 2,513 shares of the company’s stock on November 18, at an average price of $90.81 per share. This sale amounted to a total of approximately $228,205.53. Following this transaction, Mazzara owns 248,745 shares of the company, with a total value estimated at around $22,588,533.45, reflecting a decrease of about 1.00% in his ownership. Additionally, on December 4, Director Manuel Alba sold 11,000 shares at an average price of $117.50, bringing in a total of $1,292,500.00. This sale reduced Alba's ownership by 2.35%, leaving him with approximately 456,863 shares valued at about $53,681,402.50. Over the last 90 days, insiders have collectively sold 846,452 shares valued at approximately $86,427,256.

Analyst Ratings and Recommendations

Several analysts have recently reevaluated their positions on Astera Labs' stock. Northland Securities upgraded the stock from a "market perform" to an "outperform" rating, establishing a price target of $120.00. Roth Mkm also increased their price target from $80.00 to $105.00 and rated the stock as a "buy." Morgan Stanley, on the other hand, revised their target price downward from $142.00 to $114.00 while maintaining an "equal weight" rating. In another move, JPMorgan Chase & Co. raised their target for Astera Labs from $70.00 to $110.00, giving it an "overweight" rating. Finally, Craig Hallum adjusted their price target from $75.00 to $105.00 and also provided a "buy" rating. Current analysis indicates that while one analyst suggests holding the stock, eleven analysts recommend buying, and one has categorized it as a strong buy, resulting in an average buy rating with a consensus price target of $107.42 according to data from MarketBeat.com.

About Astera Labs

Astera Labs, Inc. is known for designing, manufacturing, and selling semiconductor-based connectivity solutions that cater to cloud and AI infrastructure. The company’s Intelligent Connectivity Platform comprises a variety of data, network, and memory connectivity products, all underpinned by a unified software-defined architecture. This setup allows clients to effectively deploy and manage high-performance cloud and AI infrastructures at scale.

Final Insights

The recent earnings miss combined with insider sales raises questions about the company's current health and future direction. Investors will need to weigh analyst ratings and company guidance carefully in their decision-making processes.

Earnings, Stocks, AsteraLabs