Royal Bank of Canada Reduces $18M in Astera Labs, Inc. ($ALAB)
The bank reduced its stake in Astera Labs by over 21% in the latest quarter.
Key Points
- Royal Bank of Canada reduced its Astera Labs stake by 36,506 shares, a 21.6% decrease, now holding 132,292 shares.
- Astera Labs, trading at $417.07, has a market cap of $71.5 billion and a forward P/E of 99.1.
- Insider trades include planned sales by Jack Lazar and multiple buys by other executives on June 4, 2026.
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Royal Bank of Canada has cut its stake in Astera Labs, Inc. (NasdaqGS: ALAB) by 36,506 shares, according to its latest 13F filing with the SEC. This reduction represents a 21.6% decrease, leaving the bank with 132,292 shares valued at approximately $55.2 million as of the reporting period.
Royal Bank of Canada vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
What Changed in Royal Bank of Canada's Astera Labs Position
In its recent filing, Royal Bank of Canada reported reducing its holdings in Astera Labs from 168,798 shares to 132,292 shares. The 36,506-share reduction marks a 21.6% decrease in its position, with the remaining shares valued at about $55.2 million. The move reflects a strategic adjustment in the bank's investment portfolio.
Other Institutional Activity in Astera Labs
FMR LLC increased its stake in Astera Labs by adding 194,944 shares, bringing its total to 25,529,885 shares worth around $2.8 billion. BlackRock, Inc. reduced its holdings by 1,519,089 shares, now holding 11,449,769 shares valued at approximately $1.25 billion. Meanwhile, Vanguard Portfolio Management LLC established a new position with 7,309,778 shares worth about $801.2 million. Atreides Management, LP significantly increased its stake by 1,754,593 shares, now holding 3,365,787 shares valued at $368.9 million.
Astera Labs, Inc. Stock Up 70.8%
Shares of Astera Labs traded around $417.07. The company boasts a market cap of $71.5 billion with a forward P/E ratio of 99.1 and a beta of 3.963, indicating higher volatility. The stock's 52-week range has been between $84.78 and $421.2, with a 50-day moving average of $258.03 and a 200-day moving average of $186.22. Astera Labs maintains a strong current ratio of 11.3 and a quick ratio of 10.55, with a debt-to-equity ratio of 2.801.
$ALAB stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
Astera Labs reported revenues of $1.00 billion, with a remarkable revenue growth of 93.4%. The company's net margin stands at 26.7%, and it achieved a return on equity of 21.1%. Earnings per share were $1.48. The next earnings report is scheduled for August 4, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
10 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 11.6%. Revenue beat estimates by 3.5%.
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Profit surprise
EBITDA missed by 34 percent. Operating income missed by 40 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
10 target raises.
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Earnings quality
Gross margin up 1.4 points. Operating margin up 13.0 points.
Earnings Call Summary
Astera Labs delivered strong Q1 results with revenue of $308 million, up 93 percent year over year, driven by broad growth across signal conditioning and fabric switch products. PCIe Gen 6 products contributed over one third of total revenue. The company shipped initial production volumes of the new Scorpio X 320-lane switch and is expanding optical capabilities through the XScale acquisition, with near-package optics expected to ship in 2027 and chiplet-package optics in 2028.
Guidance Management expects revenue between $355 million and $365 million in the next quarter, up 15 to 18 percent sequentially. They expect non-GAAP earnings per share between $0.68 and $0.70, with gross margin around 73 percent before a one-time customer agreement charge. The Scorpio product line is expected to become their largest business by year end.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Insider Buying and Selling at Astera Labs, Inc.
On June 4, 2026, insider Jack Lazar sold 10,000 shares at an average price of $355.17 as part of a planned sale. On the same day, insiders Craig Barratt, Michael Hurlston, Bethany Mayer, Jack Lazar, and Stefan Dyckerhoff each bought 837 shares, though the transaction prices were not disclosed.
Analysts Set New Price Targets
On May 19, 2026, Evercore ISI Group maintained a 'buy' rating for Astera Labs with a price target of $297. Barclays, on May 7, 2026, held a 'hold' rating with a $200 target. On May 6, 2026, JP Morgan, Citigroup, and Morgan Stanley all maintained 'buy' ratings with price targets of $280, $245, and $240 respectively. The consensus among 22 analysts is a 'buy' recommendation with a mean target price of $244.97.
About Astera Labs
Astera Labs, Inc. is a technology company specializing in semiconductor-based connectivity solutions for cloud and AI infrastructure. Headquartered in San Jose, California, the company designs and manufactures high-speed, mixed-signal connectivity products. Its offerings include the COSMOS software suite for connectivity management and optimization, as well as PCIe/CXL smart DSP retimers, Ethernet smart cable modules, and CXL memory connectivity controllers. Founded in 2017, Astera Labs serves hyperscalers and system OEMs.
Bottom Line
The Royal Bank of Canada's decision to reduce its stake in Astera Labs by over 21% is a notable adjustment in its investment strategy. Investors often track institutional moves like this to gauge market sentiment, though it's important to remember that 13F filings are historical and may not reflect current positions. Astera Labs remains a key player in the semiconductor industry, with strong financial metrics and positive analyst sentiment.
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