AST SpaceMobile (NASDAQ:ASTS) Shares Down 2.2% - Time to Sell?

Key Points

• AST SpaceMobile shares fell 2.2% on Wednesday, trading between $61.23 and $61.95, below the prior close of $63.34, with volume running well under average.
• The company recently completed a $1.15 billion private offering of convertible senior notes due 2034, which should help fund satellite launches and its constellation buildout.
• Despite positive progress on satellite deployment, investor caution remains due to ongoing losses and bearish commentary; the stock has a consensus analyst rating of Hold, while recent earnings missed expectations.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s share price was down 2.2% during trading on Wednesday . The company traded as low as $61.23 and last traded at $61.95. 10,811,591 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 18,636,986 shares. The stock had previously closed at $63.34.

Trending Headlines about AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile completed a private offering of $1.15 billion in convertible senior notes due 2034, easing concerns that it lacked the capital needed to fund satellite launches and constellation buildout. AST SpaceMobile Announces Completion of Private Offering of $1.15 Billion of Convertible Senior Notes Due 2034
• Positive Sentiment: Reports that BlueBirds 8, 9, and 10 are fully deployed, with three more satellites already at Cape, reinforced progress toward commercial deployment and supported the stock’s momentum. ASTS Stock Rises Overnight: CEO Says BlueBirds 8, 9 And 10 Are Fully Deployed — With 3 More Satellites Already At Cape
• Positive Sentiment: Several articles framed AST SpaceMobile as a compelling long-term space stock, including a rating upgrade arguing that the new debt could accelerate the company’s full potential by securing launch capacity and funding execution. AST SpaceMobile: Convertible Notes Accelerate Its Full Potential (Rating Upgrade)
• Neutral Sentiment: AST SpaceMobile was featured in comparisons and watchlist-style articles versus names like Redwire, and one piece argued it is a more compelling space play than SpaceX, which may have helped investor sentiment but did not add new company-specific fundamentals. Better Space Stock: AST SpaceMobile vs. Redwire
• Negative Sentiment: Jim Cramer’s comments that AST SpaceMobile is “losing a fortune” and could fall to $40, along with a law-firm investor investigation, added caution and highlighted ongoing concerns about losses and risk. ‘That Thing Has Just Been Crushed': Cramer On This Tech Stock INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of AST SpaceMobile, Inc. - ASTS

Analyst Upgrades and Downgrades

Several research analysts have recently commented on 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. William Blair restated a "market perform" rating on shares of AST SpaceMobile in a research note on Friday, May 29th. Piper Sandler initiated coverage on shares of AST SpaceMobile in a research report on Wednesday, July 15th. They issued an "overweight" rating and a $100.00 price target for the company. New Street Research set a $106.00 price objective on shares of AST SpaceMobile in a research note on Friday, May 29th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $86.95.

AST SpaceMobile Trading Down 2.2%

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 company has a market capitalization of $24.04 billion, a PE ratio of -34.80 and a beta of 2.69. The stock has a fifty day moving average of $86.07 and a 200 day moving average of $89.05.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.66) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.43). The company had revenue of $14.73 million for the quarter, compared to analysts' expectations of $39.01 million. AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. The company's quarterly revenue was up 1952.2% compared to the same quarter last year. During the same period last year, the business earned ($0.20) earnings per share. As a group, sell-side analysts predict that AST SpaceMobile, Inc. will post -1.38 earnings per share for the current fiscal year.

Insider Activity at AST SpaceMobile

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

Institutional Investors Weigh In On AST SpaceMobile

A number of hedge funds have recently made changes to their positions in the company. Tema ETFs LLC boosted its stake in AST SpaceMobile by 109,486.8% during the second quarter. Tema ETFs LLC now owns 1,003,815 shares of the company's stock valued at $89,199,000 after buying an additional 1,002,899 shares during the last quarter. Clarus Wealth Advisors bought a new stake in AST SpaceMobile in the 2nd quarter worth approximately $1,972,000. Handelsbanken Fonder AB increased its stake in AST SpaceMobile by 15.9% in the 2nd quarter. Handelsbanken Fonder AB now owns 76,000 shares of the company's stock worth $6,753,000 after acquiring an additional 10,400 shares during the last quarter. Fulcrum Equity Management raised its holdings in shares of AST SpaceMobile by 32.6% during the 2nd quarter. Fulcrum Equity Management now owns 5,430 shares of the company's stock worth $483,000 after acquiring an additional 1,336 shares in the last quarter. Finally, Community Financial Services Group LLC purchased a new stake in shares of AST SpaceMobile during the 2nd quarter worth approximately $47,000. 60.95% of the stock is currently 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.

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