Astera Labs Inc. (ALAB): The Latest Casualty Of Increased Volatility?

Astera Labs Inc. (NASDAQ:ALAB) does about 3.35M shares in volume on a normal day but saw 1927863 shares change hands in Monday’s trading. The company now has a market cap of 10.92B USD. Its current market price is $70.26, marking an increase of 0.26% compared to the previous close of $70.08. The 52 week high reached by this stock is $95.21 whilst the lowest price level in 52 weeks is $50.61.

Astera Labs Inc. (ALAB) has a 20-day trading average at $74.18 and the current price is -26.21% off the 52-week high compared with 38.83% distance from its 52-week low. If we look at the stock’s price movements over the week, volatility stands at 7.43%, which increases to 9.12% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 47.75 to suggest the stock is neutral.

The consensus objective for the share price is $87.73, suggesting that the stock has a potential upside of 19.91% over the period.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on April 16, 2024 when Evercore ISI initiated the stock to “Outperform” and issued a price target of $100. ROTH MKM initiated its price target at $85.

Astera Labs Inc. (ALAB) stock is down -10.05% over the week and -3.40% over the past month. Its price is 13.27% year-to-date.

The stock last released its quarterly earnings report for quarter ended 3/31/2024, with the company’s earnings per share (EPS) of 0.1 above consensus estimates by 0.06. The company’s next earnings report forecasts estimating quarterly EPS at 0.09 and 0.36 for whole year. Expected sales for next quarter are $77.95M, which analysts say will come at $294.45M for the current fiscal year and next year at $427.1M. In addition, estimates put the company’s current quarterly revenue at an average of $70.55M.

To reach the target analysts have set, the stock logically needs to grow 19.91 percent from here.

The company has a return on investment of -12.59% and return on equity of -16.05%. The forward price to earnings ratio is 112.77. Price to book ratio is 13.51 and price to sales ratio is 66.85.