AST SpaceMobile (NASDAQ:ASTS) Shares Up 11.7% - What's Next?

Key Points

• AST SpaceMobile shares jumped 11.7% as the broader space-stock rally gained momentum, with investors also reacting to optimism around the upcoming SpaceX IPO.
• The company has a near-term catalyst with the confirmed June 17 BlueBird satellite launch, which supports progress on its space-based direct-to-smartphone broadband network.
• Despite the rally, ASTS still faces volatility and caution: analysts maintain a consensus “Reduce” rating, insiders have been selling shares, and the company recently posted a wider-than-expected quarterly loss and revenue miss.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares shot up 11.7% during trading on Thursday . The company traded as high as $98.10 and last traded at $97.56. 22,921,894 shares were traded during mid-day trading, an increase of 29% from the average session volume of 17,822,033 shares. The stock had previously closed at $87.32.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile is trading higher along with a broad rally in space stocks, as investors position for the upcoming SpaceX IPO and related sector enthusiasm. Article: Virgin Galactic Soars 20%, AST SpaceMobile Rises 7%, Planet Labs Gains 6%, Rocket Lab Advances 5% as Space Stocks Catch a Bid
• Positive Sentiment: The confirmed June 17 launch date for BlueBird satellites gives AST SpaceMobile a near-term operational catalyst and reinforces progress on its direct-to-smartphone broadband network. Article: AST SpaceMobile Stock Climbs Ahead of SpaceX IPO As BlueBird Launch Date Confirmed for June 17
• Neutral Sentiment: Commentary around the SpaceX IPO suggests listed SpaceX could become an important benchmark for other space stocks, which may keep ASTS volatile as investors reassess valuations across the sector. Article: SpaceX Will Destroy Other Stocks. These Could Be the Biggest Losers.
• Neutral Sentiment: Market commentary notes that ASTS has seen sharp swings recently, with some traders warning of volatility even as the stock benefits from the SpaceX catalyst. Article: AST SpaceMobile’s SpaceX Catalyst Could Come With a Volatility Warning
• Negative Sentiment: Recent insider selling and prior analyst downgrades have raised concerns that can temper enthusiasm, even with the current sector rally. Article: AST SpaceMobile’s SpaceX Catalyst Could Come With a Volatility Warning

Analyst Ratings Changes

A number of equities analysts have issued reports on ASTS shares. William Blair reaffirmed a "market perform" rating on shares of AST SpaceMobile in a research report on Friday, May 29th. UBS Group dropped their price target on shares of AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating for the company in a research note on Tuesday, May 12th. Zacks Research upgraded shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research note on Wednesday, March 4th. Wall Street Zen lowered shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a report on Wednesday, April 15th. Finally, Barclays upped their target price on shares of AST SpaceMobile from $60.00 to $65.00 and gave the company an "underweight" rating in a research note on Thursday, April 9th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $81.33.

AST SpaceMobile Trading Up 11.7%

The firm's fifty day moving average price is $90.16 and its 200-day moving average price is $87.64. The company has a market cap of $37.86 billion, a price-to-earnings ratio of -54.81 and a beta of 2.70. 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 issued 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). 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 net margin of 573.67% and a negative return on equity of 24.87%. The company's revenue for the quarter was up 1952.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.20) earnings per share. On average, equities analysts expect that AST SpaceMobile, Inc. will post -1.47 EPS for the current fiscal year.

Insiders Place Their Bets

In other AST SpaceMobile news, CTO Huiwen Yao sold 40,000 shares of the business's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $96.37, for a total transaction of $3,854,800.00. Following the completion of the transaction, the chief technology officer owned 34,750 shares in the company, valued at approximately $3,348,857.50. The trade was a 53.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew Martin Johnson sold 5,000 shares of AST SpaceMobile stock in a transaction dated 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 in the company, valued at approximately $51,063,901.25. This represents a 0.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 3,140,000 shares of company stock valued at $279,903,150 in the last quarter. 20.89% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ASTS. Cornerstone Planning Group LLC lifted its holdings in shares of AST SpaceMobile by 16,350.0% during the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company's stock valued at $27,000 after purchasing an additional 327 shares during the last quarter. Crewe Advisors LLC purchased a new position in AST SpaceMobile in the 4th quarter worth about $25,000. Laurel Wealth Advisors LLC acquired a new stake in AST SpaceMobile during the 4th quarter worth about $25,000. Portus Wealth Advisors LLC acquired a new stake in AST SpaceMobile during the 1st quarter worth about $30,000. Finally, Advocate Investing Services LLC purchased a new stake in AST SpaceMobile during the first quarter valued at about $31,000. 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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