AST SpaceMobile (NASDAQ:ASTS) Shares Up 3.7% - Should You Buy?

Key Points

• AST SpaceMobile shares rose 3.7% to $58.29, but trading volume was 55% below the average. The stock remains well below its 50-day and 200-day moving averages of $84.79 and $88.56, respectively.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $86.95. Recent actions included downgrades from Deutsche Bank and UBS, alongside buy upgrades or reiterations from B. Riley and Roth Capital.
• The company reported a quarterly EPS loss of $0.66 versus expectations of $0.23 and revenue of $14.73 million versus $39.01 million expected, despite revenue growing 1,952.2% year over year. Insiders sold roughly $9.75 million of stock over the past 90 days, while institutional investors own 60.95% of shares.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shot up 3.7% on Monday . The stock traded as high as $59.50 and last traded at $58.29. 8,278,161 shares traded hands during trading, a decline of 55% from the average daily volume of 18,452,801 shares. The stock had previously closed at $56.20.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on ASTS shares. Deutsche Bank Aktiengesellschaft cut AST SpaceMobile from a "buy" rating to a "hold" rating and decreased their price target for the company from $117.00 to $106.00 in a research note on Friday, May 29th. UBS Group decreased their price objective on shares of AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating for the company in a research report on Tuesday, May 12th. Wall Street Zen cut shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research note on Wednesday, April 15th. Roth Capital reissued a "buy" rating and set a $108.00 target price on shares of AST SpaceMobile in a research report on Tuesday, May 12th. Finally, B. Riley Financial upgraded shares of AST SpaceMobile from a "neutral" rating to a "buy" rating and set a $85.00 price target on the stock in a research note on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $86.95.

AST SpaceMobile Stock Performance

The company has a quick ratio of 18.37, a current ratio of 18.47 and a debt-to-equity ratio of 1.11. The stock has a market capitalization of $22.62 billion, a PE ratio of -32.75 and a beta of 2.69. The firm has a 50 day moving average price of $84.79 and a 200-day moving average price of $88.56.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its 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 firm had revenue of $14.73 million during the quarter, compared to analysts' expectations of $39.01 million. During the same quarter in the prior year, the company earned ($0.20) EPS. AST SpaceMobile's quarterly revenue was up 1952.2% on a year-over-year basis. Research analysts expect that AST SpaceMobile, Inc. will post -1.38 EPS for the current fiscal year.

Insider Activity

In other news, Director Julio A. Torres sold 15,000 shares of the stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total value of $1,145,100.00. Following the sale, the director owned 43,239 shares in the company, valued at $3,300,865.26. This represents a 25.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Huiwen Yao sold 40,000 shares of the firm'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 transaction, the chief technology officer directly owned 34,750 shares of the company's stock, valued at approximately $3,348,857.50. This trade represents a 53.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 105,809 shares of company stock valued at $9,748,492 in the last ninety days. Insiders own 20.89% of the company's stock.

Institutional Trading of AST SpaceMobile

A number of hedge funds have recently modified their holdings of ASTS. Vanguard Group Inc. raised its position in AST SpaceMobile by 7.9% during the fourth quarter. Vanguard Group Inc. now owns 21,488,180 shares of the company's stock valued at $1,560,687,000 after acquiring an additional 1,568,292 shares in the last quarter. Vodafone Ventures Ltd purchased a new stake in AST SpaceMobile in the 4th quarter worth approximately $397,413,000. Morgan Stanley grew its stake in shares of AST SpaceMobile by 44.0% during the 4th quarter. Morgan Stanley now owns 4,661,551 shares of the company's stock worth $338,569,000 after purchasing an additional 1,425,199 shares during the period. Geode Capital Management LLC grew its stake in shares of AST SpaceMobile by 9.8% during the 4th quarter. Geode Capital Management LLC now owns 4,522,549 shares of the company's stock worth $328,749,000 after purchasing an additional 402,505 shares during the period. Finally, State Street Corp increased its holdings in shares of AST SpaceMobile by 9.7% during the 4th quarter. State Street Corp now owns 3,951,685 shares of the company's stock valued at $287,011,000 after purchasing an additional 350,690 shares in the last quarter. Hedge funds and other institutional investors own 60.95% of the company's stock.

About AST SpaceMobile

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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