AST SpaceMobile (NASDAQ:ASTS) Shares Gap Up - Here's What Happened

Key Points

• AST SpaceMobile shares surged nearly 12%, gapping up from a previous close of $45.92 to open at $51.24
• The company missed its earnings estimates for the last quarter, reporting a loss of ($0.41) per share against an expected ($0.19), with revenue falling significantly short of projections.
• Analyst ratings are mixed, with three rating AST SpaceMobile as a "hold" and five as a "buy," resulting in an average rating of "Moderate Buy" and a consensus target price of $44.99.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $45.92, but opened at $51.24. AST SpaceMobile shares last traded at $51.79, with a volume of 7,453,111 shares changing hands.

Analyst Upgrades and Downgrades

ASTS has been the topic of several research analyst reports. Scotiabank lowered their price target on shares of AST SpaceMobile from $45.40 to $42.90 and set a "sector perform" rating on the stock in a report on Thursday, August 7th. B. Riley restated a "buy" rating and set a $44.00 price target (up previously from $36.00) on shares of AST SpaceMobile in a report on Monday, June 16th. Oppenheimer initiated coverage on AST SpaceMobile in a research report on Monday, May 5th. They set a "market perform" rating for the company. Bank of America initiated coverage on AST SpaceMobile in a research report on Wednesday, June 25th. They set a "neutral" rating and a $55.00 price objective for the company. Finally, Roth Capital reaffirmed a "buy" rating on shares of AST SpaceMobile in a research report on Tuesday. Three research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $44.99.

AST SpaceMobile Trading Up 11.1%

The business has a 50 day moving average of $46.76 and a two-hundred day moving average of $32.82. The company has a current ratio of 10.62, a quick ratio of 10.62 and a debt-to-equity ratio of 0.60. The firm has a market cap of $16.15 billion, a P/E ratio of -25.65 and a beta of 2.33.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted its quarterly earnings results on Monday, August 11th. The company reported ($0.41) earnings per share for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.22). The business had revenue of $1.16 million during the quarter, compared to the consensus estimate of $6.37 million. AST SpaceMobile had a negative net margin of 7,033.22% and a negative return on equity of 23.56%. Analysts predict that AST SpaceMobile, Inc. will post -0.4 earnings per share for the current year.

Insiders Place Their Bets

In other news, President Scott Wisniewski sold 50,000 shares of the company's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $35.65, for a total value of $1,782,500.00. Following the sale, the president directly owned 545,595 shares of the company's stock, valued at approximately $19,450,461.75. This represents a 8.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Shanti B. Gupta sold 10,000 shares of AST SpaceMobile stock in a transaction on Monday, June 16th. The shares were sold at an average price of $41.84, for a total transaction of $418,400.00. Following the completion of the sale, the chief operating officer owned 305,667 shares of the company's stock, valued at $12,789,107.28. This represents a 3.17% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 184,250 shares of company stock valued at $6,146,750. 41.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ASTS. Atlantic Union Bankshares Corp purchased a new stake in shares of AST SpaceMobile in the 2nd quarter worth about $28,000. Sunbelt Securities Inc. lifted its position in shares of AST SpaceMobile by 61.9% in the 1st quarter. Sunbelt Securities Inc. now owns 1,321 shares of the company's stock worth $30,000 after purchasing an additional 505 shares during the period. GAMMA Investing LLC lifted its position in shares of AST SpaceMobile by 388.7% in the 1st quarter. GAMMA Investing LLC now owns 1,559 shares of the company's stock worth $35,000 after purchasing an additional 1,240 shares during the period. Financial Gravity Asset Management Inc. purchased a new stake in shares of AST SpaceMobile in the 1st quarter worth about $41,000. Finally, Close Asset Management Ltd grew its position in shares of AST SpaceMobile by 72.4% in the 1st quarter. Close Asset Management Ltd now owns 1,810 shares of the company's stock worth $41,000 after buying an additional 760 shares during the period. Institutional investors own 60.95% of the company's stock.

AST SpaceMobile Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.