AST SpaceMobile (NASDAQ:ASTS) Shares Down 6.7% - Here's What Happened

Key Points

• AST SpaceMobile shares fell 6.7% on Wednesday, trading as low as $67.06 after closing at $72.87 the prior session, with volume running above average.
• The company announced an August launch window for BlueBird satellites 11, 12, and 13, and is also moving ahead with a direct-to-mobile JV with Rakuten in Japan, which could expand its commercial footprint.
• Despite the positive developments, ASTS faces mixed fundamentals and analyst caution: its latest earnings missed estimates, analysts’ consensus rating is “Reduce,” and insiders have been active sellers in recent months.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s share price traded down 6.7% on Wednesday . The stock traded as low as $67.06 and last traded at $68.01. Approximately 20,160,278 shares were traded during mid-day trading, an increase of 8% from the average daily volume of 18,583,760 shares. The stock had previously closed at $72.87.

Trending Headlines about AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile set an August launch window for BlueBird satellites 11, 12 and 13, supporting the buildout of its space-based mobile broadband network. AST SpaceMobile Announces BlueBirds 11, 12, and 13 Orbital Launch in the First Half of August
• Positive Sentiment: The company is set to form a direct-to-mobile communications joint venture with Rakuten in Japan, with equal ownership and Rakuten leading management, expanding ASTS’s commercial reach in a major market. Market Chatter: AST SpaceMobile, Rakuten to Form Direct-to-Mobile Communications JV in Japan
• Positive Sentiment: Rakuten’s CEO described AST’s satellite push as “critical” for Japan’s security, which could boost confidence in the strategic importance of AST SpaceMobile’s network. ASTS Stock Jumps Overnight: Rakuten CEO Calls AST Satellite Push ‘Critical’ For Japan Security Amid SpaceX Rivalry

Analysts Set New Price Targets

Several equities research analysts recently commented on ASTS shares. Zacks Research raised shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. UBS Group cut their price target on AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating on the stock in a report on Tuesday, May 12th. New Street Research set a $106.00 target price on AST SpaceMobile in a research report on Friday, May 29th. B. Riley Financial upped their price target on AST SpaceMobile from $75.00 to $85.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 12th. Finally, Barclays lifted their price objective on shares of AST SpaceMobile from $60.00 to $65.00 and gave the company an "underweight" rating in a report on Thursday, April 9th. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, AST SpaceMobile has a consensus rating of "Reduce" and an average target price of $81.33.

AST SpaceMobile Stock Down 6.7%

The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37. The firm has a 50-day moving average of $88.56 and a 200 day moving average of $89.34. The stock has a market capitalization of $26.40 billion, a price-to-earnings ratio of -38.21 and a beta of 2.70.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.66) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.43). The company had revenue of $14.73 million for the quarter, compared to analyst estimates 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 for the quarter was up 1952.2% compared to the same quarter last year. During the same period last year, the firm earned ($0.20) EPS. As a group, sell-side analysts forecast that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Hiroshi Mikitani sold 1,350,000 shares of AST SpaceMobile stock in a transaction dated 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 owned 27,980,155 shares in the company, valued at approximately $2,412,448,964.10. This trade represents a 4.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the company's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $96.37, for a total value of $3,854,800.00. Following the completion of the sale, the chief technology officer owned 34,750 shares in the company, valued at $3,348,857.50. This represents a 53.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 3,145,809 shares of company stock worth $280,645,292. 20.89% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Focus Partners Wealth boosted its holdings in shares of AST SpaceMobile by 8,016.7% during the 4th quarter. Focus Partners Wealth now owns 1,269,609 shares of the company's stock worth $92,000,000 after buying an additional 1,253,967 shares during the period. KPP Advisory Services LLC acquired a new stake in AST SpaceMobile during the fourth quarter worth approximately $1,649,000. M&T Bank Corp boosted its holdings in shares of AST SpaceMobile by 1,062.9% during the fourth quarter. M&T Bank Corp now owns 77,994 shares of the company's stock worth $5,665,000 after acquiring an additional 71,287 shares during the period. Arrowpoint Investment Partners Singapore Pte. Ltd. bought a new stake in shares of AST SpaceMobile during the fourth quarter worth approximately $2,290,000. Finally, Legal & General Group Plc grew its position in shares of AST SpaceMobile by 26.2% in the fourth quarter. Legal & General Group Plc now owns 232,436 shares of the company's stock valued at $16,882,000 after purchasing an additional 48,318 shares during the last quarter. 60.95% of the stock is owned by institutional investors and hedge funds.

AST SpaceMobile Company Profile

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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