Mohan Jitendra, the Chief Executive Officer of Astera Labs, Inc. (NASDAQ:ALAB), recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Jitendra sold a total of 171,064 shares of common stock on November 21, 2024. The shares were sold at an average price of $103.53, amounting to approximately $17.7 million in total.
These transactions were conducted through various trusts, including a living trust and several estate planning trusts, with Jitendra serving as trustee. The sales were executed automatically as part of a pre-established Rule 10b5-1 trading plan adopted by Jitendra on May 31, 2024. Following these transactions, Jitendra retains indirect ownership of over 4.4 million shares in the company.
Astera Labs, based in Santa Clara, California, specializes in semiconductor and related device manufacturing. The company's stock is actively traded on the NASDAQ under the ticker ALAB.
In other recent news, Astera Labs reported robust third-quarter earnings and revenue, exceeding market expectations with earnings per share of $0.23 and revenue of $113.1 million. This marked a 206% year-on-year increase and a 47% sequential rise. Looking ahead, the company projects fourth-quarter revenue between $126 million and $130 million, and a non-GAAP EPS of $0.25 to $0.26. Astera Labs' positive performance has prompted several financial firms to revise their price targets. Citi initiated coverage with a Buy rating and a price target of $120.00, while Craig-Hallum, Roth/MKM, and Stifel increased their price targets to $105.00, $105.00, and $100.00 respectively.
Astera Labs continues to expand its product line and customer base. Notably, the company is preparing for the pre-production of its Scorpio PCIe Gen 6 switch and Aries retimer programs. These recent developments, along with Astera Labs' membership on the Board of Directors of the Ultra Accelerator Link Consortium, underscore the company's ongoing growth and expansion in the AI platform market. These details are based on recent news and analyst notes, providing investors with a snapshot of Astera Labs' current financial health and future prospects.
InvestingPro Insights
As Astera Labs' CEO Mohan Jitendra executes a significant stock sale, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Astera Labs boasts a market capitalization of $16.22 billion, reflecting substantial investor interest in this semiconductor manufacturer.
The company's revenue growth is particularly noteworthy, with a remarkable 206.23% increase in quarterly revenue as of Q3 2024. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year, suggesting a positive trajectory for the company's top line.
Despite the CEO's recent stock sale, Astera Labs has demonstrated strong market performance. The stock has seen a significant 47.67% price return over the past month and an impressive 156.91% return over the last three months. These figures underscore the InvestingPro Tip highlighting the company's strong recent returns.
It's worth noting that while Astera Labs holds more cash than debt on its balance sheet—a positive sign for financial stability—the company was not profitable over the last twelve months. However, another InvestingPro Tip suggests that analysts predict the company will be profitable this year, which could be a turning point for investors.
For those seeking a deeper understanding of Astera Labs' financial health and market position, InvestingPro offers 15 additional tips, providing a more comprehensive analysis for informed investment decisions.
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