AST SpaceMobile (NASDAQ:ASTS) Shares Up 10.2% Following Analyst Upgrade

Key Points

• AST SpaceMobile shares rose 10.2% after Scotiabank upgraded the stock from “sector underperform” to “sector perform,” although its $50.80 price target remains below the stock’s recent $58.44 price.
• Analyst sentiment is still cautious, with a consensus “Hold” rating and average price target of $87.60; ratings include one Strong Buy, two Buys, six Holds and two Sells.
• The company continues to face financial and execution risks: its latest quarterly revenue of $14.73 million and loss of $0.66 per share missed expectations, while insiders sold 105,809 shares worth approximately $9.75 million over the past 90 days.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) rose 10.2% during trading on Thursday after Scotiabank upgraded the stock from a sector underperform rating to a sector perform rating. Scotiabank now has a $50.80 price target on the stock. AST SpaceMobile traded as high as $58.51 and last traded at $58.44. Approximately 12,502,340 shares changed hands during trading, a decline of 32% from the average daily volume of 18,346,129 shares. The stock had previously closed at $53.03.

ASTS has been the subject of several other research reports. Deutsche Bank Aktiengesellschaft downgraded shares of AST SpaceMobile from a "buy" rating to a "hold" rating and reduced their price target for the company from $117.00 to $106.00 in a research report on Friday, May 29th. UBS Group lowered their price objective 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. B. Riley Financial upgraded shares of AST SpaceMobile from a "neutral" rating to a "buy" rating and set a $85.00 price objective for the company in a report on Friday, July 17th. Wall Street Zen downgraded shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research report on Wednesday, April 15th. Finally, New Street Research set a $106.00 target price on shares of AST SpaceMobile in a report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, AST SpaceMobile presently has a consensus rating of "Hold" and a consensus price target of $87.60.

Insider Buying and Selling

In related news, Director Julio A. Torres sold 15,000 shares of the company's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $76.34, for a total transaction of $1,145,100.00. Following the completion of the sale, the director owned 43,239 shares in the company, valued at approximately $3,300,865.26. This represents a 25.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Andrew Martin Johnson sold 45,809 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $93.81, for a total value of $4,297,342.29. Following the completion of the sale, the chief financial officer directly owned 503,619 shares of the company's stock, valued at $47,244,498.39. The trade was a 8.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 105,809 shares of company stock worth $9,748,492. 20.89% of the stock is owned by corporate insiders.

AST SpaceMobile News Summary

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

• Positive Sentiment: Upcoming BlueBird launch supports the growth narrative. AST SpaceMobile is scheduled to launch three BlueBird satellites on August 5, an important milestone for expanding its space-based cellular broadband network and demonstrating execution. AST SpaceMobile Sets August 5 Launch For Three BlueBird Satellites
• Positive Sentiment: Broader space-sector optimism lifted sentiment. Positive comments from Elon Musk regarding lunar and Mars initiatives helped revive interest in space stocks. ASTS may benefit from sector-wide momentum, though the effect is indirect and not specific to its financial performance. SPCX, ASTS, RKLB Find A Floor After Brutal July
• Positive Sentiment: Scotiabank’s upgrade provided support. The bank raised ASTS from “sector underperform” to “sector perform,” citing the company’s partnerships and upcoming launches as potential growth drivers. ASTS Stock’s Valuation Is Now In A Grey Area
• Neutral Sentiment: Analyst sentiment remains cautious. Scotiabank’s $50.80 price target is below the recent trading level, while the broader brokerage consensus is “Hold,” suggesting investors see upside potential but want more evidence of successful launches and commercial progress. AST SpaceMobile Given Average Recommendation of Hold
• Negative Sentiment: A new investor investigation creates legal overhang. Pomerantz LLP said it is investigating potential claims on behalf of ASTS investors. The announcement did not provide detailed allegations, but investigations of this type can increase uncertainty and pressure sentiment. Pomerantz Investor Alert
• Negative Sentiment: Amazon’s satellite ambitions raise competitive concerns. Amazon’s planned satellite constellation could intensify competition for customers, spectrum and capital, increasing potential margin-compression risks for AST SpaceMobile. Amazon’s Satellite Push Raises the Stakes

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ASTS. Calton & Associates Inc. grew its position in AST SpaceMobile by 0.8% in the 4th quarter. Calton & Associates Inc. now owns 13,579 shares of the company's stock worth $986,000 after purchasing an additional 104 shares in the last quarter. Investmark Advisory Group LLC lifted its position in shares of AST SpaceMobile by 2.7% during the 4th quarter. Investmark Advisory Group LLC now owns 4,645 shares of the company's stock worth $337,000 after buying an additional 120 shares in the last quarter. Atlantic Union Bankshares Corp lifted its position in shares of AST SpaceMobile by 18.2% during the 4th quarter. Atlantic Union Bankshares Corp now owns 923 shares of the company's stock worth $67,000 after buying an additional 142 shares in the last quarter. Larson Financial Group LLC boosted its stake in shares of AST SpaceMobile by 39.0% in the 4th quarter. Larson Financial Group LLC now owns 513 shares of the company's stock worth $37,000 after buying an additional 144 shares during the last quarter. Finally, Capital Advisors Ltd. LLC boosted its stake in shares of AST SpaceMobile by 6.6% in the 1st quarter. Capital Advisors Ltd. LLC now owns 2,638 shares of the company's stock worth $219,000 after buying an additional 164 shares during the last quarter. 60.95% of the stock is owned by institutional investors.

AST SpaceMobile Trading Up 10.2%

The company has a market capitalization of $22.68 billion, a P/E ratio of -32.83 and a beta of 2.69. 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 fifty day moving average price of $82.85 and a 200-day moving average price of $87.82.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing analysts' consensus estimates 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 $14.73 million for the quarter, compared to analysts' expectations of $39.01 million. During the same period in the previous year, the business posted ($0.20) earnings per share. The business's revenue was up 1952.2% compared to the same quarter last year. On average, equities research analysts anticipate that AST SpaceMobile, Inc. will post -1.38 earnings per share for the current year.

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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