AST SpaceMobile (NASDAQ:ASTS) Trading Down 3.6% – What’s Next?

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares dropped 3.6% on Wednesday . The company traded as low as $64.59 and last traded at $66.31. 12,829,769 shares traded hands during mid-day trading, a decline of 30% from the average session volume of 18,313,539 shares. The stock had previously closed at $68.82.

More AST SpaceMobile News

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

• Positive Sentiment: Piper Sandler upgraded AST SpaceMobile to “strong-buy,” reinforcing a bullish analyst view on the company’s long-term opportunity. Zacks.com
• Positive Sentiment: Some market commentators argued the $1 billion fundraise is being misunderstood and that the actual shareholder dilution impact may be relatively limited. Benzinga article
• Neutral Sentiment: Bell Canada completed a ground station in Québec that will support AST SpaceMobile’s direct-to-device satellite service, adding operational infrastructure for the network. Yahoo Finance article
• Neutral Sentiment: AST SpaceMobile also secured additional regulatory approval in New Zealand and reported progress on BlueBird satellite launches, which supports its rollout but was overshadowed by financing concerns. Yahoo Finance article
• Negative Sentiment: The stock was hit by concerns that the convertible-note financing could dilute shareholders and signal added leverage, intensifying pressure on shares. Motley Fool article
• Negative Sentiment: Investors were also worried about delays in AST SpaceMobile’s satellite launch timeline, adding to the negative reaction around funding news. Invezz article

Analyst Ratings Changes

ASTS has been the subject of several research reports. Roth Capital reaffirmed a “buy” rating and set a $108.00 price objective on shares of AST SpaceMobile in a report on Tuesday, May 12th. William Blair restated a “market perform” rating on shares of AST SpaceMobile in a research report on Friday, May 29th. Piper Sandler started coverage on AST SpaceMobile in a research report on Wednesday. They issued an “overweight” rating and a $100.00 price target for the company. Wall Street Zen downgraded AST SpaceMobile from a “sell” rating to a “strong sell” rating in a research note on Wednesday, April 15th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of AST SpaceMobile in a research report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, AST SpaceMobile has a consensus rating of “Hold” and an average price target of $86.95.

AST SpaceMobile Stock Performance

The company has a market capitalization of $21.35 billion, a PE ratio of -30.90 and a beta of 2.69. The stock’s fifty day simple moving average is $87.11 and its 200-day simple moving average is $89.34. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47.

AST SpaceMobile (NASDAQ:ASTS) last issued its quarterly earnings results on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.43). The firm had revenue of $14.73 million for the quarter, compared to analysts’ expectations of $39.01 million. AST SpaceMobile had a negative return on equity of 24.87% and a negative net margin of 573.67%.The business’s quarterly revenue was up 1952.2% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.20) earnings per share. As a group, equities analysts predict that AST SpaceMobile, Inc. will post -1.37 earnings per share for the current year.

Insider Transactions at AST SpaceMobile

In other news, CFO Andrew Martin Johnson sold 45,809 shares of AST SpaceMobile stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $93.81, for a total value of $4,297,342.29. Following the completion of the sale, the chief financial officer owned 503,619 shares of the company’s stock, valued at $47,244,498.39. The trade was a 8.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Julio A. Torres sold 15,000 shares of the stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $76.34, for a total value of $1,145,100.00. Following the transaction, the director owned 43,239 shares in the company, valued at $3,300,865.26. This trade represents a 25.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 105,809 shares of company stock worth $9,748,492 over the last quarter. 20.89% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AST SpaceMobile

Several institutional investors and hedge funds have recently added to or reduced their stakes in ASTS. Crewe Advisors LLC acquired a new stake in shares of AST SpaceMobile in the fourth quarter worth $25,000. Laurel Wealth Advisors LLC purchased a new position in shares of AST SpaceMobile in the fourth quarter valued at $25,000. Cornerstone Planning Group LLC grew its holdings in AST SpaceMobile by 16,350.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock valued at $27,000 after purchasing an additional 327 shares in the last quarter. Grove Bank & Trust acquired a new stake in AST SpaceMobile during the 2nd quarter valued at $27,000. Finally, Byrne Asset Management LLC acquired a new stake in AST SpaceMobile during the 4th quarter valued at $29,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

AST SpaceMobile Company Profile

AST SpaceMobile is a U.S.-based aerospace company developing a space-based cellular broadband network designed to connect standard mobile phones and other devices directly to satellites. The company’s core proposition is “space-to-cell” service: operating a constellation of low-Earth-orbit (LEO) satellites equipped with large, high-power phased-array antennas to provide wide-area mobile broadband without requiring users to buy specialized terminals or handset modifications.

AST SpaceMobile designs, builds and operates satellite payloads and supporting ground infrastructure.