AST SpaceMobile (NASDAQ:ASTS) Shares Gap Down After Analyst Downgrade

Key Points

• AST SpaceMobile shares gapped down after Deutsche Bank downgraded the stock from buy to hold and set a $106 price target. The stock opened sharply lower at $113.46 versus a prior close of $133.09.
• Analyst sentiment remains mixed, with multiple firms trimming targets or issuing cautious ratings. MarketBeat data shows a consensus rating of "Reduce" and a consensus target price of $78.08.
• Recent insider activity has also drawn attention, including a large sale by major shareholder Hiroshi Mikitani and a smaller sale by CFO Andrew Martin Johnson. Insiders sold a total of 3.1 million shares worth about $276 million over the last three months.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares gapped down before the market opened on Friday after Deutsche Bank Aktiengesellschaft downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $133.09, but opened at $113.46. Deutsche Bank Aktiengesellschaft now has a $106.00 price target on the stock. AST SpaceMobile shares last traded at $109.7180, with a volume of 14,388,743 shares.

ASTS has been the topic of several other research reports. Barclays boosted their price target on AST SpaceMobile from $60.00 to $65.00 and gave the company an "underweight" rating in a research note on Thursday, April 9th. Wall Street Zen downgraded shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research note on Wednesday, April 15th. UBS Group lowered their target price on shares of AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating on the stock in a report on Tuesday, May 12th. Roth Mkm reiterated a "buy" rating and set a $108.00 target price on shares of AST SpaceMobile in a research report on Tuesday, May 12th. Finally, New Street Research assumed coverage on shares of AST SpaceMobile in a research report on Wednesday, May 13th. They issued a "neutral" rating and a $80.00 price target on the stock. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $78.08.

Insider Buying and Selling at AST SpaceMobile

In other AST SpaceMobile news, major shareholder Hiroshi Mikitani sold 1,690,000 shares of AST SpaceMobile stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $91.42, for a total transaction of $154,499,800.00. Following the completion of the sale, the insider owned 29,330,155 shares of the company's stock, valued at approximately $2,681,362,770.10. The trade was a 5.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Andrew Martin Johnson sold 5,000 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $90.25, for a total transaction of $451,250.00. Following the sale, the chief financial officer owned 565,805 shares of the company's stock, valued at $51,063,901.25. The trade was a 0.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,100,000 shares of company stock valued at $276,048,350 in the last three months. Insiders own 20.89% of the company's stock.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: ASTS is benefiting from a broad rally in space infrastructure stocks as investors rotate into names tied to the next major growth cycle for the sector. ASTS, LUNR, RDW Stocks Hit 52-Week Highs Today: What's Driving The Rally?
• Positive Sentiment: Investors remain focused on AST SpaceMobile’s upcoming launches and its long-term satellite deployment plan, which supports the bullish case that the company is moving closer to commercialization. AST SpaceMobile’s June Launch Plan Puts Its 2026 Satellite Goal Back in Focus
• Positive Sentiment: Some market commentary says ASTS is still attracting buyers because it offers direct-to-smartphone satellite exposure at a valuation many investors see as more attractive than the upcoming SpaceX IPO. AST SpaceMobile Over SpaceX Any Day
• Neutral Sentiment: The company also reported a recent insider sale by President Scott Wisniewski, which may add to investor attention but does not necessarily change the long-term story by itself. Insider Selling: AST SpaceMobile NASDAQ: ASTS President Sells 25,904 Shares of Stock
• Negative Sentiment: ASTS is also facing overnight pressure tied to Blue Origin/New Glenn issues, with investors worrying about launch reliability and possible spillover risk for AST’s satellite rollout plans. ASTS Stock Slides Overnight: Blue Origin Explosion Raises Fresh Fears For 45-Satellite Rollout
• Negative Sentiment: Separate headlines also point to valuation risk and dilution concerns, which could limit upside if execution slows or capital needs increase. The SpaceX IPO Frenzy Is Creating 2 Very Different Bets (ASTS)

Hedge Funds Weigh In On AST SpaceMobile

Institutional investors have recently modified their holdings of the stock. REAP Financial Group LLC bought a new position in shares of AST SpaceMobile during the third quarter worth $25,000. Crewe Advisors LLC acquired a new stake in AST SpaceMobile during the 4th quarter worth $25,000. Laurel Wealth Advisors LLC bought a new position in AST SpaceMobile during the fourth quarter worth about $25,000. Cornerstone Planning Group LLC lifted its holdings in AST SpaceMobile by 16,350.0% during the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company's stock worth $27,000 after acquiring an additional 327 shares in the last quarter. Finally, Byrne Asset Management LLC acquired a new position in AST SpaceMobile in the fourth quarter valued at about $29,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

AST SpaceMobile Trading Down 20.7%

The business has a 50 day simple moving average of $87.61 and a 200-day simple moving average of $85.05. The stock has a market capitalization of $40.98 billion, a price-to-earnings ratio of -59.67 and a beta of 2.60. The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last released its quarterly earnings data 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). AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. The business had revenue of $14.74 million for the quarter, compared to the consensus estimate of $39.01 million. During the same quarter last year, the firm earned ($0.20) EPS. The company's revenue for the quarter was up 1952.2% on a year-over-year basis. As a group, equities analysts expect that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.