AST SpaceMobile, Inc. (NASDAQ:ASTS) Receives Average Rating of "Reduce" from Analysts

Key Points

• AST SpaceMobile has a consensus analyst rating of "Reduce" from 11 covering analysts, with three sell ratings, six hold ratings, and two buy ratings. The average 1-year price target is $79.45.
• The company recently reported a weaker-than-expected quarterly result, posting EPS of -$0.66 versus expectations of -$0.23 and revenue of $14.74 million versus $39.01 million forecast.
• Despite mixed fundamentals and insider selling, ASTS has gotten a boost from industry partnership momentum, as AT&T, T-Mobile, and Verizon announced a satellite-focused wireless joint venture that supports the company’s direct-to-smartphone strategy.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) have received a consensus recommendation of "Reduce" from the eleven analysts that are covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and two have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $79.45.

ASTS has been the subject of several recent analyst reports. Barclays raised their price objective on shares of AST SpaceMobile from $60.00 to $65.00 and gave the stock an "underweight" rating in a research report on Thursday, April 9th. Wall Street Zen lowered shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a report on Wednesday, April 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Friday, March 27th. Deutsche Bank Aktiengesellschaft set a $117.00 price target on shares of AST SpaceMobile in a research report on Wednesday, April 15th. Finally, UBS Group decreased their price objective on AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating on the stock in a report on Tuesday.

More AST SpaceMobile News

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

• Positive Sentiment: AT&T, T-Mobile, and Verizon announced a satellite-focused wireless joint venture, reinforcing investor confidence in AST SpaceMobile’s direct-to-smartphone network strategy. Spooked By Musk's SpaceX, Big Three Wireless Firms Forge Satellite-To-Phone Joint Venture
• Positive Sentiment: AST SpaceMobile publicly welcomed the carriers’ proposed direct-to-device collaboration, signaling the company sees the move as supportive of its market thesis and future partnerships. AST SpaceMobile Commends Proposed Direct-to-Device Joint Venture by U.S. Mobile Network Operators
• Neutral Sentiment: New Street Research began coverage of the space economy, including AST SpaceMobile among the companies it is tracking, adding more attention to the stock but not providing a clear directional catalyst. New Street Research Launches Space Economy and Infrastructure Coverage
• Neutral Sentiment: Analyst commentary remains mixed following ASTS’s recent earnings miss, with some articles highlighting execution and competition risks even as partnership momentum improves. Analysts’ Opinions Are Mixed on These Technology Stocks
• Negative Sentiment: Director Julio A. Torres sold 15,000 shares, a transaction that may be viewed as a modest insider confidence signal against the stock. Julio A. Torres insider transaction

Insider Buying and Selling at AST SpaceMobile

In other news, major shareholder Hiroshi Mikitani sold 1,350,000 shares of the stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $86.22, for a total transaction of $116,397,000.00. Following the completion of the transaction, the insider directly owned 27,980,155 shares in the company, valued at approximately $2,412,448,964.10. This represents a 4.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Julio A. Torres sold 15,000 shares of the firm's 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 sale, the director directly owned 43,239 shares of the company's stock, valued at $3,300,865.26. The trade was 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 3,095,000 shares of company stock worth $275,597,100 over the last quarter. 20.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC raised its stake in shares of AST SpaceMobile by 11.8% in the 1st quarter. AQR Capital Management LLC now owns 34,548 shares of the company's stock valued at $786,000 after acquiring an additional 3,642 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of AST SpaceMobile by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,764 shares of the company's stock worth $1,814,000 after purchasing an additional 3,515 shares during the period. Millennium Management LLC boosted its position in shares of AST SpaceMobile by 16.1% during the 1st quarter. Millennium Management LLC now owns 467,626 shares of the company's stock worth $10,634,000 after purchasing an additional 64,989 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in AST SpaceMobile by 18.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 325,621 shares of the company's stock valued at $7,405,000 after purchasing an additional 49,811 shares during the last quarter. Finally, Strs Ohio acquired a new stake in AST SpaceMobile in the 1st quarter valued at approximately $168,000. Hedge funds and other institutional investors own 60.95% of the company's stock.

AST SpaceMobile Stock Performance

NASDAQ ASTS opened at $83.01 on Friday. The company has a debt-to-equity ratio of 1.11, a quick ratio of 16.27 and a current ratio of 18.47. The stock's fifty day moving average is $85.08 and its two-hundred day moving average is $82.95. The firm has a market capitalization of $31.71 billion, a P/E ratio of -46.63 and a beta of 2.60. AST SpaceMobile has a fifty-two week low of $22.47 and a fifty-two week high of $129.89.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing the consensus estimate of ($0.23) by ($0.43). The company had revenue of $14.74 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 firm's revenue was up 1952.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.20) EPS. On average, research analysts anticipate that AST SpaceMobile will post -1.47 earnings per share for the current year.

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.

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