AST SpaceMobile (NASDAQ:ASTS) Shares Down 8.8% - What's Next?

Key Points

• AST SpaceMobile shares fell 8.8% on the day, closing at $107.73 after trading as low as $106.29, even though volume was only slightly below average.
• Recent coverage remains mixed: the company is still seen as a promising direct-to-device satellite broadband play, but sector-wide volatility tied to the SpaceX IPO has pressured space stocks and fueled near-term selling.
• Analysts are cautious overall, with a consensus rating of “Reduce” and an average price target of $81.33, while the company also recently reported a quarterly earnings miss and continued losses.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price fell 8.8% during trading on Wednesday . The stock traded as low as $106.29 and last traded at $107.73. 17,424,972 shares traded hands during trading, a decline of 1% from the average session volume of 17,689,918 shares. The stock had previously closed at $118.17.

Key AST SpaceMobile News

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

• Positive Sentiment: AST SpaceMobile was highlighted as one of the more promising space stocks for investors waiting on the SpaceX IPO, reinforcing the company’s long-term appeal in satellite broadband. Are You Waiting for the SpaceX IPO? Check Out These 3 Space Stocks Instead.
• Positive Sentiment: Several top executives, including the CEO, president, and CFO, disclosed substantial shareholdings, which investors may view as a vote of confidence in the company’s outlook. ASTS Stock Snaps 2-Day Losing Streak: Top Execs Hold Shares In Vote Of Confidence Amid Space Race Turbulence
• Positive Sentiment: Recent articles continued to emphasize AST SpaceMobile’s potential to be the first company to offer direct-to-device satellite internet, a key growth catalyst if its constellation deployment stays on track.
• Neutral Sentiment: Broader “space stocks” coverage remains mixed, with some reports focusing on sector volatility rather than company-specific news for ASTS. Space Stocks Worth Watching - May 30th
• Negative Sentiment: SpaceX IPO-related trading has also triggered profit-taking and risk reduction across the space group, pressuring ASTS along with peers as investors reassess valuations. Space Stocks Slide Again As ETF Drops Nearly 10% In Two Days
• Negative Sentiment: One report said shares of ASTS and other space names dropped as the market grew more cautious ahead of the SpaceX listing, adding near-term volatility to the stock. The SpaceX IPO Is Whipping Space Stocks Into a Frenzy

Analyst Upgrades and Downgrades

A number of research analysts have commented on ASTS shares. Roth Mkm reaffirmed a "buy" rating and set a $108.00 target price on shares of AST SpaceMobile in a report on Tuesday, May 12th. New Street Research set a $106.00 target price on AST SpaceMobile in a report on Friday, May 29th. Wall Street Zen lowered AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research report on Wednesday, April 15th. 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 research report on Tuesday, May 12th. Finally, Barclays lifted their target price on AST SpaceMobile from $60.00 to $65.00 and gave the company an "underweight" rating in a research note on Thursday, April 9th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $81.33.

AST SpaceMobile Stock Down 8.8%

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 stock has a 50 day moving average price of $88.29 and a 200 day moving average price of $85.64. The company has a market cap of $41.81 billion, a P/E ratio of -60.52 and a beta of 2.70.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted its quarterly earnings data on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.43). The firm had revenue of $14.74 million during the quarter, compared to the consensus estimate 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 quarterly revenue was up 1952.2% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.20) EPS. Research analysts expect that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, major shareholder Hiroshi Mikitani sold 1,350,000 shares of the business's stock in a transaction on 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 sale, the insider directly owned 27,980,155 shares of the company's stock, valued at $2,412,448,964.10. The trade was a 4.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Huiwen Yao sold 40,000 shares of AST SpaceMobile stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $88.88, for a total value of $3,555,200.00. Following the transaction, the chief technology officer owned 4,750 shares in the company, valued at $422,180. This represents a 89.39% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 3,100,000 shares of company stock valued at $276,048,350 over the last ninety days. 20.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Calton & Associates Inc. grew its holdings in shares of AST SpaceMobile by 0.8% during the fourth quarter. Calton & Associates Inc. now owns 13,579 shares of the company's stock valued at $986,000 after buying an additional 104 shares in the last quarter. Investmark Advisory Group LLC grew its holdings in shares of AST SpaceMobile by 2.7% during the fourth quarter. Investmark Advisory Group LLC now owns 4,645 shares of the company's stock valued at $337,000 after buying an additional 120 shares in the last quarter. ORG Partners LLC grew its holdings in shares of AST SpaceMobile by 4.2% during the fourth quarter. ORG Partners LLC now owns 3,283 shares of the company's stock valued at $238,000 after buying an additional 133 shares in the last quarter. Atlantic Union Bankshares Corp grew its holdings in shares of AST SpaceMobile by 18.2% during the fourth quarter. Atlantic Union Bankshares Corp now owns 923 shares of the company's stock valued at $67,000 after buying an additional 142 shares in the last quarter. Finally, Larson Financial Group LLC grew its holdings in shares of AST SpaceMobile by 39.0% during the fourth quarter. Larson Financial Group LLC now owns 513 shares of the company's stock valued at $37,000 after buying an additional 144 shares in the last quarter. Hedge funds and other institutional investors own 60.95% of the company's stock.

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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