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SANTA CLARA, CA—Mohan Jitendra, Chief Executive Officer of Astera Labs , Inc. (NASDAQ:ALAB), a semiconductor company with impressive gross profit margins of 76% and a market capitalization of $15.6 billion, has sold a significant portion of his holdings in the company, according to a recent SEC filing. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall rating. On May 19, Jitendra offloaded a total of 128,250 shares of common stock, generating approximately $11.5 million. The sales were executed at an average price of $90.02 per share.
These transactions were carried out under a pre-arranged Rule 10b5-1 trading plan adopted by Jitendra in December 2024. Following these sales, Jitendra retains direct and indirect ownership of over 4.3 million shares, held across various trusts.
The trades were conducted as part of a series of planned sales, with the shares being sold in multiple transactions at prices ranging from $87.29 to $90.93. The CEO’s remaining shares continue to reflect a substantial investment in the company, showcasing his ongoing commitment to Astera Labs. With 10 analysts recently revising earnings estimates upward and strong sales growth expected this year, discover more insights about ALAB’s potential in the comprehensive InvestingPro Research Report.
In other recent news, Astera Labs reported first-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.33, surpassing the anticipated $0.10. Revenue for the quarter reached $159.4 million, marking a 144% increase year-over-year and a 13% rise sequentially. Despite these strong results, the company’s stock experienced a decline following the announcement, as second-quarter guidance, though above consensus, did not meet the high expectations set by the first quarter. Astera Labs projects second-quarter adjusted EPS of $0.32-$0.33 and revenue between $170-175 million. Meanwhile, Evercore ISI has raised its price target for Astera Labs to $104, citing a strong growth outlook, particularly in the AI sector, and maintained an Outperform rating. Morgan Stanley (NYSE:MS) also upgraded Astera Labs from Equalweight to Overweight, setting a price target of $99, highlighting growth potential in hyperscale data centers and AI. Additionally, Astera Labs announced a collaboration with NVIDIA (NASDAQ:NVDA) to enhance the NVLink Fusion ecosystem, aiming to support hyperscalers with advanced AI network solutions. These developments underscore Astera Labs’ strategic focus on expanding its product portfolio and solidifying its position in AI infrastructure.
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