AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 2% – Time to Sell?

AST SpaceMobile, Inc. (NASDAQ:ASTS) traded down 2% on Tuesday . The stock traded as low as $57.81 and last traded at $58.77. Approximately 7,123,860 shares were traded during trading, a decline of 58% from the average session volume of 16,910,777 shares. The stock had previously closed at $60.00.

Key AST SpaceMobile News

Here are the key news stories impacting AST SpaceMobile this week:

• Positive Sentiment: AST SpaceMobile’s mobile-network-operator base has reportedly expanded to more than 60 operators representing approximately 3 billion subscribers. The potential distribution reach supports the company’s long-term revenue opportunity, although satellite deployment and regulatory approvals remain important execution hurdles. Can AST SpaceMobile’s Expanding MNO Base Boost Its Revenue Prospects?
• Neutral Sentiment: Investor commentary remains sharply divided. Bullish investors view AST SpaceMobile’s direct-to-device satellite technology as potentially transformative, while bearish investors argue that the stock’s large multiyear advance has produced an aggressive valuation relative to the company’s balance sheet and pre-revenue status. Bulls Say AST SpaceMobile Is a 10-Bagger. Bears Say It’s Overhyped.
• Negative Sentiment: Several law firms, including Rosen Law Firm, Bernstein Liebhard, Gainey McKenna & Egleston, Holzer & Holzer, and Robbins LLP, announced or promoted a securities class action against AST SpaceMobile. The allegations include that the company overstated its liquidity and competitive position, understated future capital needs and potential dilution or debt, and failed to disclose slow user adoption in the United States and Japan. The allegations have not been proven, but the concentration of announcements raises litigation, reputational and potential financial risks for shareholders. Rosen Law Firm ASTS Investor Notice Holzer & Holzer ASTS Investor Alert

Analysts Set New Price Targets

A number of research analysts have recently commented on ASTS shares. Piper Sandler lowered their target price on AST SpaceMobile from $100.00 to $98.00 and set an “overweight” rating for the company in a research report on Tuesday, August 11th. UBS Group assumed coverage on shares of AST SpaceMobile in a research note on Wednesday, September 2nd. They set a “buy” rating on the stock. B. Riley Financial upgraded shares of AST SpaceMobile from a “neutral” rating to a “buy” rating and set a $85.00 target price on the stock in a research report on Friday, July 17th. Cantor Fitzgerald lifted their price target on AST SpaceMobile from $80.00 to $90.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 11th. Finally, Berenberg Bank started coverage on AST SpaceMobile in a research report on Wednesday, September 2nd. They set a “buy” rating and a $92.00 price objective on the stock. Six analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $86.58.

AST SpaceMobile Stock Down 2.0%

The firm has a market cap of $22.87 billion, a PE ratio of -27.46 and a beta of 2.74. The company has a 50-day simple moving average of $64.17 and a 200-day simple moving average of $79.59. The company has a debt-to-equity ratio of 1.24, a current ratio of 13.05 and a quick ratio of 12.90.

AST SpaceMobile (NASDAQ:ASTS) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.32) by ($0.45). The business had revenue of $31.52 million for the quarter, compared to the consensus estimate of $34.53 million. AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%.During the same period in the prior year, the business posted ($0.41) earnings per share. Analysts expect that AST SpaceMobile, Inc. will post -1.95 earnings per share for the current fiscal year.

Insider Buying and Selling at AST SpaceMobile

In related news, Director Adriana Cisneros bought 10,822 shares of the stock in a transaction dated Monday, August 31st. The stock was purchased at an average cost of $57.22 per share, with a total value of $619,234.84. Following the completion of the purchase, the director owned 797,023 shares of the company’s stock, valued at $45,605,656.06. This trade represents a 1.38% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 20.89% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Calton & Associates Inc. grew its position in shares of AST SpaceMobile by 0.8% in the 4th quarter. Calton & Associates Inc. now owns 13,579 shares of the company’s stock worth $986,000 after buying an additional 104 shares during the last quarter. Larson Financial Group LLC lifted its position in AST SpaceMobile by 39.0% during the fourth quarter. Larson Financial Group LLC now owns 513 shares of the company’s stock valued at $37,000 after acquiring an additional 144 shares during the last quarter. Capital Advisors Ltd. LLC boosted its stake in AST SpaceMobile by 6.6% in the first quarter. Capital Advisors Ltd. LLC now owns 2,638 shares of the company’s stock valued at $219,000 after acquiring an additional 164 shares in the last quarter. Hollencrest Capital Management boosted its stake in AST SpaceMobile by 11.7% in the first quarter. Hollencrest Capital Management now owns 1,592 shares of the company’s stock valued at $132,000 after acquiring an additional 167 shares in the last quarter. Finally, TD Waterhouse Canada Inc. grew its holdings in AST SpaceMobile by 15.5% in the second quarter. TD Waterhouse Canada Inc. now owns 1,404 shares of the company’s stock worth $121,000 after purchasing an additional 188 shares during the last quarter. 60.95% of the stock is currently owned by institutional investors.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc develops a space-based cellular broadband network designed to connect standard, unmodified mobile phones directly to satellites. Its planned service is intended to extend mobile connectivity beyond the coverage of traditional terrestrial wireless networks, including in rural, remote and underserved areas.

The company’s primary technology platform consists of large, low-Earth-orbit satellites known as BlueBirds. AST SpaceMobile is developing these satellites to provide voice, messaging and broadband data services through partnerships with mobile network operators, using existing cellular devices and spectrum where permitted.

Founded in 2017 and headquartered in Midland, Texas, AST SpaceMobile was established by Abel Avellan, who serves as its chairman and chief executive officer.