AST SpaceMobile (NASDAQ:ASTS) Shares Down 5.1% - Should You Sell?

Key Points

• AST SpaceMobile's stock dropped by 5.1%, closing at $78.61 after hitting a low of $76.33, which reflects a significant volume decline of 30% compared to its average daily trading volume.
• Brokerages have given mixed ratings, with Barclays downgrading AST SpaceMobile to "underweight" with a price target of $60.00, while Zacks upgraded it to "hold," indicating a consensus rating of "hold" with an average price target of $45.27.
• The company reported a loss of ($0.41) EPS for the last quarter, missing the consensus estimate and generating only $1.16 million in revenue, far below the expected $6.37 million.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) dropped 5.1% during mid-day trading on Tuesday . The company traded as low as $76.33 and last traded at $78.61. Approximately 8,610,595 shares were traded during trading, a decline of 30% from the average daily volume of 12,217,654 shares. The stock had previously closed at $82.81.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ASTS. Barclays downgraded shares of AST SpaceMobile from an "overweight" rating to an "underweight" rating and set a $60.00 price objective for the company. in a research report on Friday. Zacks Research upgraded AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research note on Monday, August 18th. Bank of America assumed coverage on AST SpaceMobile in a research report on Wednesday, June 25th. They set a "neutral" rating and a $55.00 price target on the stock. Scotiabank lowered AST SpaceMobile from a "sector perform" rating to a "sector underperform" rating and set a $42.90 price objective on the stock. in a report on Tuesday, October 7th. Finally, Roth Capital restated a "buy" rating on shares of AST SpaceMobile in a research report on Tuesday, August 12th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $45.27.

AST SpaceMobile Price Performance

The company has a debt-to-equity ratio of 0.42, a quick ratio of 8.23 and a current ratio of 8.23. The stock has a market capitalization of $28.18 billion, a PE ratio of -41.59 and a beta of 2.41. The stock's 50 day moving average is $55.63 and its two-hundred day moving average is $43.01.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its earnings results on Monday, August 11th. The company reported ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.22). The firm had revenue of $1.16 million for the quarter, compared to analyst estimates of $6.37 million. AST SpaceMobile had a negative net margin of 7,213.90% and a negative return on equity of 26.81%. On average, equities analysts anticipate that AST SpaceMobile, Inc. will post -0.4 EPS for the current fiscal year.

Insiders Place Their Bets

In other AST SpaceMobile news, CFO Andrew Martin Johnson sold 20,000 shares of AST SpaceMobile stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $52.48, for a total transaction of $1,049,600.00. Following the sale, the chief financial officer owned 397,485 shares of the company's stock, valued at $20,860,012.80. The trade was a 4.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $40.58, for a total transaction of $1,623,200.00. Following the completion of the sale, the chief technology officer owned 4,750 shares of the company's stock, valued at $192,755. This trade represents a 89.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 41.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in ASTS. GAMMA Investing LLC increased its holdings in shares of AST SpaceMobile by 388.7% in the first quarter. GAMMA Investing LLC now owns 1,559 shares of the company's stock valued at $35,000 after purchasing an additional 1,240 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in AST SpaceMobile by 58.1% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 16,249 shares of the company's stock valued at $370,000 after buying an additional 5,973 shares in the last quarter. Janney Montgomery Scott LLC acquired a new stake in shares of AST SpaceMobile in the 1st quarter worth $331,000. Sowell Financial Services LLC acquired a new stake in shares of AST SpaceMobile in the 1st quarter worth $216,000. Finally, ORG Partners LLC purchased a new position in shares of AST SpaceMobile during the 1st quarter worth $48,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

About AST SpaceMobile

AST SpaceMobile, Inc, together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.

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