Have Insiders Sold Astera Labs Shares Recently?

We wouldn't blame Astera Labs, Inc. (NASDAQ:ALAB) shareholders if they were a little worried about the fact that Stefan Dyckerhoff, the Independent Director recently netted about US$4.5m selling shares at an average price of US$89.70. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Astera Labs

The Last 12 Months Of Insider Transactions At Astera Labs

In fact, the recent sale by Stefan Dyckerhoff was the biggest sale of Astera Labs shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$92.25, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 23% of Stefan Dyckerhoff's stake.

In the last twelve months insiders purchased 36.75k shares for US$1.3m. But insiders sold 77.76k shares worth US$5.9m. All up, insiders sold more shares in Astera Labs than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Astera Labs better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Astera Labs

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Astera Labs insiders own 17% of the company, worth about US$2.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Astera Labs Insiders?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Astera Labs has 2 warning signs and it would be unwise to ignore these.

Of course Astera Labs may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.