Have Astera Labs Insiders Been Selling Stock?

We wouldn't blame Astera Labs, Inc. (NASDAQ:ALAB) shareholders if they were a little worried about the fact that Michael Tate, the Chief Financial Officer recently netted about US$3.2m selling shares at an average price of US$92.07. However, that sale only accounted for 2.1% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Astera Labs

The Last 12 Months Of Insider Transactions At Astera Labs

The Independent Director, Stefan Dyckerhoff, made the biggest insider sale in the last 12 months. That single transaction was for US$4.5m worth of shares at a price of US$90.00 each. So we know that an insider sold shares at around the present share price of US$85.72. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 36.75k shares for US$1.3m. But they sold 142.50k shares for US$12m. Over the last year we saw more insider selling of Astera Labs shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Astera Labs

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Astera Labs insiders own 16% of the company, worth about US$2.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Astera Labs Insiders?

Insiders haven't bought Astera Labs stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Astera Labs that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.