AST SpaceMobile (NASDAQ:ASTS) Shares Gap Up - Time to Buy?

Key Points

• AST SpaceMobile shares experienced a significant **price increase**, opening at **$53.51** after closing at **$49.08**, with a volume of **3,344,317** shares traded.
• Brokerages have shown varied interest in ASTS, with **Zacks** upgrading it to a "hold" and **Bank of America** issuing a **$55.00** price target; the stock currently has an average rating of "hold" and a consensus target of **$45.27**.
• Recently, **institutional investors** made significant adjustments, with **Rakuten Group Inc.** and **Alphabet Inc.** acquiring new stakes in the company during the first quarter.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $49.08, but opened at $53.51. AST SpaceMobile shares last traded at $53.31, with a volume of 3,344,317 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ASTS. Zacks Research raised shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research report on Monday, August 18th. William Blair initiated coverage on shares of AST SpaceMobile in a research note on Thursday, August 21st. They set a "market perform" rating on the stock. Bank of America assumed coverage on shares of AST SpaceMobile in a research note on Wednesday, June 25th. They issued a "neutral" rating and a $55.00 price target for the company. Roth Capital reaffirmed a "buy" rating on shares of AST SpaceMobile in a report on Tuesday, August 12th. Finally, B. Riley reaffirmed a "buy" rating and issued a $44.00 price objective (up previously from $36.00) on shares of AST SpaceMobile in a report on Monday, June 16th. Four research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $45.27.

AST SpaceMobile Stock Up 13.0%

The firm has a market cap of $19.88 billion, a price-to-earnings ratio of -29.35 and a beta of 2.43. The firm's fifty day moving average is $47.86 and its two-hundred day moving average is $37.49. The company has a debt-to-equity ratio of 0.42, a current ratio of 8.23 and a quick ratio of 8.23.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its quarterly earnings results on Monday, August 11th. The company reported ($0.41) EPS for the quarter, missing the consensus estimate 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 return on equity of 26.81% and a negative net margin of 7,213.90%. On average, sell-side analysts expect that AST SpaceMobile, Inc. will post -0.4 EPS for the current fiscal year.

Insider Transactions at AST SpaceMobile

In other news, CFO Andrew Martin Johnson sold 20,000 shares of the company's stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $52.48, for a total value of $1,049,600.00. Following the transaction, the chief financial officer owned 397,485 shares in the company, valued at $20,860,012.80. This represents a 4.79% decrease in their position. 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 the business's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $40.58, for a total value of $1,623,200.00. Following the completion of the sale, the chief technology officer directly owned 4,750 shares of the company's stock, valued at approximately $192,755. The trade was a 89.39% decrease in their position. The disclosure for this sale can be found here. 41.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AST SpaceMobile

Several large investors have recently made changes to their positions in the company. Rakuten Group Inc. bought a new stake in AST SpaceMobile during the first quarter worth approximately $705,398,000. Alphabet Inc. bought a new stake in AST SpaceMobile during the first quarter worth approximately $203,375,000. Northern Trust Corp boosted its position in AST SpaceMobile by 2.7% during the first quarter. Northern Trust Corp now owns 1,266,315 shares of the company's stock worth $28,796,000 after purchasing an additional 33,259 shares during the period. Oppenheimer & Co. Inc. boosted its position in AST SpaceMobile by 4.1% during the first quarter. Oppenheimer & Co. Inc. now owns 888,654 shares of the company's stock worth $20,208,000 after purchasing an additional 34,591 shares during the period. Finally, Voya Investment Management LLC lifted its holdings in shares of AST SpaceMobile by 1,992.5% during the first quarter. Voya Investment Management LLC now owns 843,554 shares of the company's stock worth $19,182,000 after buying an additional 803,240 shares during the last quarter. Institutional investors own 60.95% of the company's stock.

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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