AST SpaceMobile (NASDAQ:ASTS) Shares Up 12.2% - Here's Why

Key Points

• AST SpaceMobile shares increased by 12.2% during trading, reaching a high of $56.39 before closing at $54.80, with trading volume up 118% from averages.
• Brokerage firms have mixed ratings on the stock, with UBS downgrading it to a "neutral" rating and a target price cut from $62.00 to $43.00, while B. Riley raised its price target to $44.00.
• AST SpaceMobile reported a significant earnings miss, with a loss of ($0.41) EPS compared to analysts' expectations of ($0.19), alongside revenue of only $1.16 million against expectations of $6.37 million.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shot up 12.2% during trading on Tuesday . The company traded as high as $56.39 and last traded at $54.80. 25,632,690 shares were traded during trading, an increase of 118% from the average session volume of 11,761,446 shares. The stock had previously closed at $48.85.

Wall Street Analyst Weigh In

A number of brokerages recently commented on ASTS. UBS Group downgraded shares of AST SpaceMobile from a "buy" rating to a "neutral" rating and lowered their target price for the stock from $62.00 to $43.00 in a research note on Tuesday, September 9th. William Blair started coverage on shares of AST SpaceMobile in a research note on Thursday, August 21st. They set a "market perform" rating for the company. B. Riley reissued a "buy" rating and issued a $44.00 price target (up from $36.00) on shares of AST SpaceMobile in a research report on Monday, June 16th. Roth Capital reissued a "buy" rating on shares of AST SpaceMobile in a research report on Tuesday, August 12th. Finally, Scotiabank reduced their price target on shares of AST SpaceMobile from $45.40 to $42.90 and set a "sector perform" rating for the company in a research report on Thursday, August 7th. Three analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $42.82.

AST SpaceMobile Stock Up 12.2%

The business's fifty day moving average price is $48.40 and its 200 day moving average price is $36.59. The company has a quick ratio of 8.23, a current ratio of 8.23 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $19.65 billion, a PE ratio of -28.99 and a beta of 2.43.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its earnings results on Monday, August 11th. The company reported ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.22). AST SpaceMobile had a negative net margin of 7,213.90% and a negative return on equity of 26.81%. The business had revenue of $1.16 million during the quarter, compared to analysts' expectations of $6.37 million. On average, equities research analysts forecast that AST SpaceMobile, Inc. will post -0.4 earnings per share for the current fiscal year.

Insider Transactions at AST SpaceMobile

In other news, CTO Huiwen Yao sold 40,000 shares of the company's stock in a transaction dated 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. This represents a 89.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Andrew Martin Johnson sold 20,000 shares of the company's stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $52.48, for a total transaction of $1,049,600.00. Following the completion of the sale, the chief financial officer directly owned 397,485 shares of the company's stock, valued at $20,860,012.80. The trade was a 4.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. 41.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AST SpaceMobile

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Osaic Holdings Inc. increased its position in AST SpaceMobile by 7.2% during the 2nd quarter. Osaic Holdings Inc. now owns 67,905 shares of the company's stock worth $3,173,000 after purchasing an additional 4,533 shares during the period. Centaurus Financial Inc. acquired a new position in AST SpaceMobile during the 2nd quarter worth approximately $142,000. Orion Porfolio Solutions LLC increased its position in AST SpaceMobile by 35.9% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 39,663 shares of the company's stock worth $1,853,000 after purchasing an additional 10,487 shares during the period. B. Riley Wealth Advisors Inc. acquired a new position in AST SpaceMobile during the 2nd quarter worth approximately $306,000. Finally, Newbridge Financial Services Group Inc. acquired a new position in shares of AST SpaceMobile during the 2nd quarter worth $47,000. Institutional investors and hedge funds 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.

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.