Alkeon Capital Reduces Stake in Astera Labs by 37.5%

Alkeon Capital Management LLC has reduced its stake in Astera Labs, Inc. (NASDAQ: ALAB) by 37.5% during the third quarter of 2024. According to a recent filing with the Securities and Exchange Commission, the investment firm sold 150,000 shares, bringing its total holdings down to 250,000 shares. This reduction valued at approximately $48.95 million represents about 0.15% of Astera Labs’ total stock.

In addition to Alkeon Capital, several other institutional investors have adjusted their positions in Astera Labs. Clearstead Advisors LLC increased its holdings by 13.6%, acquiring an additional 76 shares for a total of 636 shares, now valued at $125,000. Great Valley Advisor Group Inc. also raised its stake by 2.2%, increasing its total to 4,119 shares worth approximately $372,000. Rye Brook Capital LLC added 100 shares during the same period, bringing its total to 9,200 shares valued at $1.8 million.

Assetmark Inc. made a significant move by increasing its holdings by 374.1% during the third quarter, acquiring an additional 101 shares, resulting in a total of 128 shares valued at $25,000. Finally, SlateStone Wealth LLC raised its stake by 1.3%, now owning 12,744 shares worth approximately $2.5 million. Overall, institutional investors collectively hold 60.47% of Astera Labs’ stock.

Astera Labs’ Market Performance

The market performance of Astera Labs has shown variability, with shares opening at $120.31 on the last trading day. Over the past year, the stock has fluctuated between a low of $47.13 and a high of $262.90. The company currently boasts a market capitalization of $20.48 billion, with a price-to-earnings (PE) ratio of 98.61 and a price-to-earnings-growth (PEG) ratio of 2.37. Astera Labs also has a beta of 1.74, indicating higher volatility compared to the overall market.

Astera Labs recently reported its quarterly earnings on February 10, 2024. The company posted earnings per share (EPS) of $0.58, surpassing analysts’ expectations of $0.51 by $0.07. The firm recorded a net margin of 25.70% and a return on equity of 16.12%. Revenue for the quarter reached $270.58 million, exceeding analyst estimates of $249.46 million. This represents a remarkable 91.8% increase in revenue compared to the same quarter last year.

Moving forward, Astera Labs has provided guidance for the first quarter of 2026, projecting an EPS between $0.530 and $0.540. Analysts forecast an EPS of $0.34 for the current year.

Insider Trading Activity

In related news, significant insider trading activity has occurred at Astera Labs. General Counsel Philip Mazzara sold 10,000 shares on March 2, 2024, at an average price of $117.47, totaling $1,174,700. Following this transaction, Mazzara holds 128,084 shares, valued at approximately $15.05 million. This sale represents a 7.24% decrease in his ownership.

Additionally, Chief Financial Officer Michael Truett Tate sold 12,001 shares on February 17, 2024, at an average price of $123.81, amounting to $1,485,843.81. After this transaction, Tate retains 192,083 shares valued at approximately $23.78 million, reflecting a 5.88% decrease in ownership. Over the last quarter, insiders collectively sold 224,292 shares valued at $27.68 million, with insiders owning around 12.50% of the company’s stock.

Several brokerages have recently reassessed their ratings on Astera Labs. BNP Paribas Exane commenced coverage on the company, issuing an “outperform” rating. Morgan Stanley reaffirmed an “overweight” rating with a target price of $210.00 per share. Royal Bank of Canada also initiated coverage, setting a target price of $225.00. Conversely, Weiss Ratings downgraded Astera Labs from “hold (c-)” to “sell (d+)”. Barclays set a price objective of $165.00.

Currently, the consensus among analysts includes fifteen ratings for “Buy”, six for “Hold”, and one for “Sell”, leading to an average rating of “Moderate Buy” with a consensus target price of $202.22 for Astera Labs.

In summary, Alkeon Capital’s recent divestment, coupled with Astera Labs’ strong earnings performance and the ongoing insider trading activity, underscores the dynamic nature of the company’s stock and the varying perspectives from institutional investors and analysts.