AST SpaceMobile (NASDAQ:ASTS) Shares Up 7.4% - Here's Why

Key Points

• AST SpaceMobile shares rose 7.4% on Thursday, reaching as high as $97.65, with trading volume running well above average at about 24.2 million shares.
• Several recent catalysts appeared to boost sentiment, including Defiance’s launch of a 2X long ASTS ETF, Orange’s new partnership and Romania trials, and reports that the FCC approved commercial direct-to-device service in the U.S.
• Despite the rally, analyst sentiment remains cautious: the stock has a consensus rating of “Reduce” with a $79.45 price target, even as AST SpaceMobile continues to attract institutional interest and insider selling has been significant.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares were up 7.4% during trading on Thursday . The company traded as high as $97.65 and last traded at $96.23. Approximately 24,244,237 shares changed hands during trading, an increase of 47% from the average daily volume of 16,481,650 shares. The stock had previously closed at $89.58.

More AST SpaceMobile News

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

• Positive Sentiment: Defiance launched the Defiance Daily Target 2X Long ASTS ETF (ASTY), giving traders a new leveraged product tied directly to AST SpaceMobile and signaling rising speculative interest in the name. Defiance Launches ASTY: The 2X Long ETF for AST SpaceMobile, Inc.
• Positive Sentiment: Orange announced new partnerships with AST SpaceMobile to expand direct-to-cell satellite services and run trials in Romania, reinforcing commercialization progress and international expansion potential. Orange Satellite And Cyber Moves Add New Angles To Valuation Story
• Positive Sentiment: Reports highlighted FCC approval for AST SpaceMobile to provide commercial direct-to-device service in the U.S., a key regulatory milestone that supports the company’s growth narrative. Forget SpaceX. These 2 Space Stocks Could Be the Real Winners Of the Coming IPO Frenzy
• Positive Sentiment: Commentary around ASTS’s strong recent share-price momentum and technical breakout suggests traders may be chasing further upside. A Look At AST SpaceMobile (ASTS) Valuation After Strong Recent Share Price Momentum
• Neutral Sentiment: AST SpaceMobile presented at J.P. Morgan’s global technology conference, which keeps the company in front of investors but did not include a clearly market-moving new announcement. AST SpaceMobile, Inc. (ASTS) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Neutral Sentiment: Several articles framed ASTS as a rising satellite-communications winner, but these were largely commentary pieces reinforcing the bullish narrative rather than new fundamental developments. Why AST SpaceMobile Is the Bigger Winner of the AT&T, T-Mobile, and Verizon Joint Venture

Wall Street Analyst Weigh In

A number of analysts have commented on ASTS shares. Wall Street Zen lowered shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a report on Wednesday, April 15th. New Street Research initiated coverage on shares of AST SpaceMobile in a report on Wednesday, May 13th. They set a "neutral" rating and a $80.00 target price for the company. Barclays boosted their target price on AST SpaceMobile from $60.00 to $65.00 and gave the stock an "underweight" rating in a research report on Thursday, April 9th. Roth Mkm restated a "buy" rating and set a $108.00 target price on shares of AST SpaceMobile in a research report on Tuesday, May 12th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a research report on Friday, March 27th. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $79.45.

AST SpaceMobile Stock Up 7.4%

The company has a market cap of $36.76 billion, a price-to-earnings ratio of -54.06 and a beta of 2.60. The company has a current ratio of 18.47, a quick ratio of 18.37 and a debt-to-equity ratio of 1.11. The firm's fifty day moving average price is $84.48 and its 200-day moving average price is $83.20.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The company reported ($0.66) earnings per share (EPS) for the quarter, missing the consensus estimate 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 $14.74 million during the quarter, compared to analyst estimates of $39.01 million. During the same period last year, the firm earned ($0.20) EPS. AST SpaceMobile's quarterly revenue was up 1952.2% on a year-over-year basis. Sell-side analysts predict that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current year.

Insider Activity at AST SpaceMobile

In related news, CTO Huiwen Yao sold 40,000 shares of the business's stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $88.88, for a total value of $3,555,200.00. Following the completion of the transaction, the chief technology officer directly owned 4,750 shares in the company, valued at approximately $422,180. The trade was a 89.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Julio A. Torres sold 15,000 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the director owned 43,239 shares of the company's stock, valued at $3,300,865.26. This represents a 25.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 3,095,000 shares of company stock worth $275,597,100. 20.89% of the stock is owned by company insiders.

Hedge Funds Weigh In On AST SpaceMobile

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ASTS. Vodafone Ventures Ltd acquired a new position in AST SpaceMobile in the 4th quarter worth $397,413,000. Norges Bank acquired a new position in AST SpaceMobile during the 4th quarter worth approximately $198,270,000. Vanguard Group Inc. boosted its position in AST SpaceMobile by 13.4% during the 3rd quarter. Vanguard Group Inc. now owns 19,919,888 shares of the company's stock worth $977,668,000 after acquiring an additional 2,351,539 shares during the last quarter. Clear Street Group Inc. acquired a new position in AST SpaceMobile during the 3rd quarter worth approximately $90,129,000. Finally, Morgan Stanley boosted its position in 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 acquiring an additional 1,425,199 shares during the last quarter. 60.95% of the stock is owned by institutional investors and hedge funds.

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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