AST SpaceMobile (NASDAQ:ASTS) Shares Down 14.8% Following Analyst Downgrade

Key Points

• AST SpaceMobile shares fell 14.8% after Deutsche Bank downgraded the stock from buy to hold and cut its price target to $106 from $117.
• Trading volume surged to 53.6 million shares, well above the average, as the stock dropped from a prior close of $133.09 and briefly traded as low as $105.37.
• Sentiment is being pressured by broader concerns, including launch delay risks tied to Blue Origin’s New Glenn issues and recent insider selling, while analysts overall rate the stock a Reduce with an average target of $81.33.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) dropped 14.8% on Friday after Deutsche Bank Aktiengesellschaft downgraded the stock from a buy rating to a hold rating. Deutsche Bank Aktiengesellschaft now has a $106.00 price target on the stock, down from their previous price target of $117.00. AST SpaceMobile traded as low as $105.37 and last traded at $113.41. Approximately 53,565,971 shares were traded during mid-day trading, an increase of 205% from the average daily volume of 17,543,115 shares. The stock had previously closed at $133.09.

Other research analysts also recently issued reports about the company. UBS Group dropped their price target on AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Friday, March 27th. Barclays boosted their price objective on AST SpaceMobile from $60.00 to $65.00 and gave the company an "underweight" rating in a report on Thursday, April 9th. Wall Street Zen lowered AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research report on Wednesday, April 15th. Finally, New Street Research assumed coverage on AST SpaceMobile in a report on Wednesday, May 13th. They issued a "neutral" rating and a $80.00 target price on the stock. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $81.33.

Insider Buying and Selling at AST SpaceMobile

In other news, Director Julio A. Torres sold 15,000 shares of the stock in a transaction that occurred on 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 completion of the sale, the director directly owned 43,239 shares of the company's stock, valued at $3,300,865.26. This represents a 25.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Andrew Martin Johnson sold 5,000 shares of AST SpaceMobile stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $90.25, for a total value of $451,250.00. Following the transaction, the chief financial officer directly owned 565,805 shares in the company, valued at approximately $51,063,901.25. The trade was a 0.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 3,100,000 shares of company stock worth $276,048,350. 20.89% of the stock is currently owned by insiders.

Key Headlines Impacting AST SpaceMobile

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

• Negative Sentiment: AST SpaceMobile fell after Blue Origin’s New Glenn rocket exploded during a test, stoking concerns that launch delays could disrupt ASTS’s satellite rollout plans and slow progress on its 45-satellite deployment schedule. Blue Origin Blast Sends AST SpaceMobile Down 18.5%
• Negative Sentiment: Deutsche Bank downgraded ASTS from buy to hold and cut its price target to $106 from $117, adding more pressure to a stock already trading at a rich valuation. AST SpaceMobile Shares Sink After Blue Origin Rocket Explosion
• Negative Sentiment: Investors are also worried the Blue Origin failure could delay ASTS satellite launches, especially since a prior New Glenn mission already failed to place one of ASTS’s BlueBird satellites into the correct orbit. ASTS Stock Slides Overnight: Blue Origin Explosion Raises Fresh Fears For 45-Satellite Rollout
• Negative Sentiment: Insider selling by President Scott Wisniewski, who sold 25,904 shares, may also weigh on sentiment even though the transaction was relatively small versus his remaining holdings. Insider Selling: AST SpaceMobile NASDAQ: ASTS President Sells 25,904 Shares of Stock

Institutional Trading of AST SpaceMobile

Several institutional investors have recently made changes to their positions in ASTS. Vanguard Group Inc. lifted its position in shares of AST SpaceMobile by 7.9% during the fourth quarter. Vanguard Group Inc. now owns 21,488,180 shares of the company's stock valued at $1,560,687,000 after purchasing an additional 1,568,292 shares in the last quarter. Vodafone Ventures Ltd purchased a new stake in AST SpaceMobile in the 4th quarter valued at about $397,413,000. Morgan Stanley increased its stake in AST SpaceMobile by 44.0% in the 4th quarter. Morgan Stanley now owns 4,661,551 shares of the company's stock valued at $338,569,000 after buying an additional 1,425,199 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of AST SpaceMobile by 9.8% during the 4th quarter. Geode Capital Management LLC now owns 4,522,549 shares of the company's stock worth $328,749,000 after buying an additional 402,505 shares in the last quarter. Finally, State Street Corp boosted its stake in shares of AST SpaceMobile by 9.7% in the 4th quarter. State Street Corp now owns 3,951,685 shares of the company's stock worth $287,011,000 after buying an additional 350,690 shares during the last quarter. Institutional investors own 60.95% of the company's stock.

AST SpaceMobile Price Performance

The stock has a market cap of $44.02 billion, a PE ratio of -63.71 and a beta of 2.60. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47. The business has a 50 day moving average price of $87.61 and a two-hundred day moving average price of $85.05.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) 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). AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. The business had revenue of $14.74 million for the quarter, compared to analysts' expectations of $39.01 million. During the same period in the previous year, the business posted ($0.20) earnings per share. The business's revenue was up 1952.2% compared to the same quarter last year. Research analysts expect that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current fiscal 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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