AST SpaceMobile (NASDAQ:ASTS) Trading Down 4.5% – Time to Sell?

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s share price traded down 4.5% during trading on Thursday . The stock traded as low as $57.66 and last traded at $59.18. 11,852,031 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 18,589,039 shares. The stock had previously closed at $61.95.

AST SpaceMobile News Roundup

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

• Positive Sentiment: Some analysts and commentators continue to argue that the recent pullback is a buying opportunity, saying AST SpaceMobile’s long-term direct-to-device satellite connectivity story remains intact and that launch-vehicle issues, not lost demand, are behind recent volatility.
• Positive Sentiment: There is speculation that the new $1 billion note proceeds could support a launch-provider acquisition, which may help AST SpaceMobile reduce long-term reliance on SpaceX and Blue Origin and improve vertical integration. Article Title
• Neutral Sentiment: Short-interest data showed no meaningful change in available figures, so it does not appear to be a major fresh driver for the stock today.
• Negative Sentiment: The $1 billion convertible note deal is the clearest near-term negative, as investors may view it as a potential source of future share dilution and added balance-sheet complexity. Article Title
• Negative Sentiment: A law firm investigation into claims on behalf of ASTS investors adds legal uncertainty and can weigh on sentiment. Article Title
• Negative Sentiment: Shares have also been under pressure from a broader risk-off move in launch and space-related stocks, reflecting investor caution ahead of a key test flight and ongoing volatility in the sector.

Analysts Set New Price Targets

Several research firms recently issued reports on ASTS. Deutsche Bank Aktiengesellschaft cut AST SpaceMobile from a “buy” rating to a “hold” rating and cut their target price for the stock from $117.00 to $106.00 in a research report on Friday, May 29th. New Street Research set a $106.00 price target on AST SpaceMobile in a research note on Friday, May 29th. Piper Sandler assumed coverage on shares of AST SpaceMobile in a report on Wednesday, July 15th. They set an “overweight” rating and a $100.00 price objective for the company. Wall Street Zen lowered shares of AST SpaceMobile from a “sell” rating to a “strong sell” rating in a report on Wednesday, April 15th. Finally, Roth Capital reissued a “buy” rating and issued a $108.00 target price on shares of AST SpaceMobile in a report on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, AST SpaceMobile presently has a consensus rating of “Hold” and an average price target of $86.95.

AST SpaceMobile Trading Down 5.0%

The stock has a market cap of $21.81 billion, a PE ratio of -31.57 and a beta of 2.69. The stock has a 50-day moving average price of $84.79 and a two-hundred day moving average price of $88.58. The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37.

AST SpaceMobile (NASDAQ:ASTS) last posted its 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). AST SpaceMobile had a negative return on equity of 24.87% and a negative net margin of 573.67%.The firm had revenue of $14.73 million during the quarter, compared to analysts’ expectations of $39.01 million. During the same quarter in the prior year, the firm posted ($0.20) earnings per share. AST SpaceMobile’s quarterly revenue was up 1952.2% on a year-over-year basis. Sell-side analysts forecast that AST SpaceMobile, Inc. will post -1.38 earnings per share for the current fiscal year.

Insider Transactions at AST SpaceMobile

In related news, Director Julio A. Torres sold 15,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total value of $1,145,100.00. Following the sale, the director owned 43,239 shares in the company, valued at approximately $3,300,865.26. The trade was a 25.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Andrew Martin Johnson sold 45,809 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $93.81, for a total transaction of $4,297,342.29. Following the sale, the chief financial officer directly owned 503,619 shares in the company, valued at approximately $47,244,498.39. The trade was a 8.34% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 105,809 shares of company stock valued at $9,748,492 in the last ninety days. Corporate insiders own 20.89% of the company’s stock.

Hedge Funds Weigh In On AST SpaceMobile

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Crewe Advisors LLC bought a new position in shares of AST SpaceMobile in the 4th quarter valued at about $25,000. Laurel Wealth Advisors LLC bought a new stake in AST SpaceMobile during the fourth quarter worth approximately $25,000. Cornerstone Planning Group LLC raised its position in AST SpaceMobile by 16,350.0% during the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock valued at $27,000 after purchasing an additional 327 shares during the period. Grove Bank & Trust purchased a new stake in AST SpaceMobile during the second quarter valued at approximately $27,000. Finally, Byrne Asset Management LLC bought a new stake in shares of AST SpaceMobile in the 4th quarter valued at approximately $29,000. 60.95% of the stock is owned by hedge funds and other institutional investors.

About AST SpaceMobile

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.