AST SpaceMobile (NASDAQ:ASTS) Reaches New 52-Week Low – Time to Sell?

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares hit a new 52-week low during trading on Monday. The company traded as low as $36.54 and last traded at $36.5520, with a volume of 12,893,843 shares trading hands. The stock had previously closed at $40.97.

AST SpaceMobile News Summary

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

• Positive Sentiment: AST SpaceMobile and AT&T completed a live call handoff between a terrestrial cellular network and AST’s satellite service, an important step toward continuous coverage on standard phones. Can ASTS’ Handoff Test With AT&T Strengthen Its Growth Prospects?
• Positive Sentiment: Chile granted AST’s local unit a 30-year concession to provide nationwide mobile satellite services, adding regulatory support for its international service plans. Chile Clears AST SpaceMobile for Nationwide Satellite Service
• Neutral Sentiment: ASTS is approaching its Q3 report, expected Nov. 9. Satellite launches, partnerships and government contracts are potential growth drivers, while high costs and execution risks remain central investor questions. Should You Buy, Sell or Hold ASTS Stock Ahead of Q3 Earnings?
• Negative Sentiment: Reports say the company will not reach its target of 45 satellites in orbit this year. Delays could push out service expansion and revenue, particularly concerning given AST’s substantial cash needs. AST SpaceMobile Just Admitted It Won’t Hit 45 Satellites This Year
• Negative Sentiment: Several law firms publicized a securities class action alleging, among other claims, that company disclosures overstated capital and liquidity. These are allegations, not established findings, but the litigation adds uncertainty. ASTS Shareholder Alert
• Negative Sentiment: One valuation-focused article questions whether the stock’s valuation is justified by its assets, while commentary also flags SpaceX’s potential wireless push as a competitive risk. AST SpaceMobile Stock May Be Fully Valued

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. B. Riley Financial lowered AST SpaceMobile from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $85.00 to $65.00 in a research note on Friday, October 2nd. Piper Sandler lowered AST SpaceMobile from an “overweight” rating to a “neutral” rating and cut their target price for the company from $98.00 to $54.00 in a research report on Tuesday, October 13th. Cantor Fitzgerald upped their target price on shares of AST SpaceMobile from $80.00 to $90.00 and gave the company an “overweight” rating in a research note on Tuesday, August 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of AST SpaceMobile in a research note on Monday, September 21st. Finally, Scotiabank raised AST SpaceMobile from a “sector perform” rating to a “sector outperform” rating and raised their price target for the stock from $50.80 to $55.70 in a report on Friday, October 23rd. Six investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $80.67.

AST SpaceMobile Stock Performance

The firm’s 50-day simple moving average is $53.87 and its two-hundred day simple moving average is $77.17. The company has a debt-to-equity ratio of 1.24, a quick ratio of 12.90 and a current ratio of 13.05.

AST SpaceMobile (NASDAQ:ASTS) last issued its earnings results on Monday, August 10th. The company reported ($0.77) EPS for the quarter, missing the consensus estimate of ($0.32) by ($0.45). AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%. The business had revenue of $31.52 million during the quarter, compared to analyst estimates of $34.53 million. During the same period last year, the business earned ($0.41) EPS. As a group, equities analysts expect that AST SpaceMobile, Inc. will post -1.91 earnings per share for the current year.

Insider Activity

In other AST SpaceMobile news, COO Shanti B. Gupta sold 12,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $58.89, for a total value of $706,680.00. Following the transaction, the chief operating officer owned 462,980 shares in the company, valued at approximately $27,264,892.20. This represents a 2.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Huiwen Yao sold 40,000 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $58.93, for a total transaction of $2,357,200.00. Following the transaction, the chief technology officer owned 34,750 shares in the company, valued at approximately $2,047,817.50. This represents a 53.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.89% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AST SpaceMobile

A number of institutional investors have recently made changes to their positions in the stock. ABN Amro Investment Solutions acquired a new position in AST SpaceMobile in the 1st quarter valued at about $996,000. KBC Group NV increased its stake in shares of AST SpaceMobile by 259.5% during the first quarter. KBC Group NV now owns 23,438 shares of the company’s stock worth $1,942,000 after purchasing an additional 16,918 shares during the period. Bank of Nova Scotia bought a new position in shares of AST SpaceMobile during the first quarter worth approximately $1,329,000. Sanders Morris Harris LLC bought a new position in shares of AST SpaceMobile during the third quarter worth approximately $1,020,000. Finally, Swedbank AB acquired a new stake in AST SpaceMobile during the 1st quarter worth approximately $3,399,000. 60.95% of the stock is owned by institutional investors and hedge funds.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc is a space-based communications company developing a global cellular broadband network designed to connect directly with standard, unmodified mobile phones. Its technology is intended to extend wireless coverage beyond traditional terrestrial networks, including in rural, remote and underserved areas.

The company is building and deploying a constellation of large low Earth orbit satellites, known as the BlueBird satellite system. AST SpaceMobile plans to provide voice, messaging, data and broadband services through partnerships with mobile network operators, allowing subscribers to remain connected outside the reach of conventional cellular towers.

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