AST SpaceMobile (NASDAQ:ASTS) Shares Down 3.6% After Insider Selling

Key Points

• AST SpaceMobile shares fell 3.6% after CTO Huiwen Yao sold 40,000 shares in a pre-arranged Rule 10b5-1 transaction, adding to negative sentiment around the stock.
• Analyst opinions remain cautious: the stock carries a consensus “Reduce” rating and an average price target of $81.33, even as some firms raised their targets.
• The company’s June 17 BlueBird launch is still a key positive catalyst, as it could help expand AST SpaceMobile’s satellite network and support future commercial growth.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) fell 3.6% on Tuesday after an insider sold shares in the company. The company traded as low as $85.50 and last traded at $88.71. 26,737,228 shares traded hands during mid-day trading, an increase of 50% from the average session volume of 17,789,693 shares. The stock had previously closed at $92.06.

Specifically, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $96.37, for a total value of $3,854,800.00. Following the transaction, the chief technology officer directly owned 34,750 shares of the company's stock, valued at approximately $3,348,857.50. This represents a 53.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Barclays increased their price objective on shares of AST SpaceMobile from $60.00 to $65.00 and gave the stock an "underweight" rating in a research note on Thursday, April 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Friday, March 27th. B. Riley Financial boosted their price objective on AST SpaceMobile from $75.00 to $85.00 and gave the company a "neutral" rating in a report on Tuesday, May 12th. Zacks Research raised shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research note on Wednesday, March 4th. Finally, Wall Street Zen cut AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research report on Wednesday, April 15th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $81.33.

AST SpaceMobile News Roundup

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

• Positive Sentiment: AST SpaceMobile confirmed the June 17 launch of BlueBird 8, 9, and 10 aboard a SpaceX Falcon 9 rocket, reinforcing progress toward expanding its satellite constellation and improving data speeds. AST SpaceMobile Advances Satellite Network Expansion as BlueBird Launch Date Confirmed (ASTS)
• Positive Sentiment: The launch news is fueling investor optimism that ASTS can stay on schedule with its network buildout, which is a key milestone for future commercial adoption and revenue potential. AST SpaceMobile Set to Launch Next-Generation BlueBird Satellites
• Neutral Sentiment: Short-interest data showed no meaningful change in reported shares shorted, so it does not appear to be a major driver of the move. AST SpaceMobile Set to Launch Next-Generation BlueBird Satellites
• Negative Sentiment: Barclays reiterated a sell rating, and broader analyst commentary continues to show a consensus of Reduce, which can pressure the stock despite the launch catalyst. Barclays Sticks to Its Sell Rating for AST SpaceMobile (ASTS)
• Negative Sentiment: Recent insider selling by CTO Huiwen Yao, while pre-planned, may still weigh on sentiment because it adds to concerns about near-term upside. Insider Selling: AST SpaceMobile NASDAQ: ASTS CTO Sells 40,000 Shares of Stock
• Negative Sentiment: Analyst articles also highlighted risks tied to AST SpaceMobile’s reliance on SpaceX for launches, which could raise strategic and pricing concerns over time. How SpaceX Reliance Shapes AST SpaceMobile Risk Pricing And Valuation

AST SpaceMobile Trading Down 3.6%

The company's 50-day moving average is $89.69 and its 200-day moving average is $87.16. The company has a quick ratio of 18.37, a current ratio of 18.47 and a debt-to-equity ratio of 1.11. The stock has a market capitalization of $34.43 billion, a price-to-earnings ratio of -49.84 and a beta of 2.70.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The company reported ($0.66) earnings per share 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 company had revenue of $14.74 million for the quarter, compared to analyst estimates of $39.01 million. During the same quarter in the prior year, the business earned ($0.20) earnings per share. AST SpaceMobile's revenue was up 1952.2% on a year-over-year basis. Research analysts anticipate that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. REAP Financial Group LLC acquired a new position in AST SpaceMobile during the 3rd quarter worth about $25,000. Crewe Advisors LLC purchased a new stake in AST SpaceMobile during the fourth quarter worth about $25,000. Laurel Wealth Advisors LLC purchased a new position in shares of AST SpaceMobile in the fourth quarter valued at approximately $25,000. Cornerstone Planning Group LLC grew its holdings in shares of AST SpaceMobile by 16,350.0% in 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 in the last quarter. Finally, Byrne Asset Management LLC purchased a new stake in AST SpaceMobile during the 4th quarter worth approximately $29,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

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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