AST SpaceMobile (NASDAQ:ASTS) Shares Up 8.9% - Here's Why

Key Points

• Shares rose 8.9% intraday to about $90.92 on higher-than-average volume, trading well above its 50‑day ($68.71) and 200‑day ($59.34) moving averages.
• Analyst consensus is a "Hold" with an average price target of $45.66, roughly half the current share price, highlighting a notable disconnect between market trading and analyst valuations.
• The company reported an earnings miss (EPS -$0.45 vs. -$0.18 expected) and lower-than-expected revenue, and insiders have sold large blocks of stock recently, while institutional ownership remains high.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price was up 8.9% during mid-day trading on Monday . The stock traded as high as $92.45 and last traded at $90.92. Approximately 20,482,487 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 19,784,426 shares. The stock had previously closed at $83.47.

Analysts Set New Price Targets

Several research firms have weighed in on ASTS. Zacks Research cut AST SpaceMobile from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 21st. Weiss Ratings reissued a "sell (d-)" rating on shares of AST SpaceMobile in a research report on Monday, December 29th. Scotiabank upgraded AST SpaceMobile from a "sector underperform" rating to a "sector perform" rating and set a $45.60 price objective for the company in a research report on Monday, November 24th. Barclays downgraded AST SpaceMobile from an "overweight" rating to an "underweight" rating and set a $60.00 price objective on the stock. in a research note on Friday, October 17th. Finally, UBS Group downgraded shares of AST SpaceMobile from a "buy" rating to a "neutral" rating and lowered their price objective for the company from $62.00 to $43.00 in a report on Tuesday, September 9th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, AST SpaceMobile presently has an average rating of "Hold" and an average price target of $45.66.

AST SpaceMobile Stock Up 8.9%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 9.48 and a current ratio of 9.56. The firm's 50 day moving average price is $68.71 and its two-hundred day moving average price is $59.34. The company has a market cap of $33.37 billion, a P/E ratio of -73.32 and a beta of 2.70.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its earnings results on Monday, November 10th. The company reported ($0.45) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.18) by ($0.27). The firm had revenue of $14.74 million during the quarter, compared to the consensus estimate of $22.04 million. AST SpaceMobile had a negative net margin of 1,639.59% and a negative return on equity of 27.76%. The business's quarterly revenue was up 1236.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($1.10) earnings per share. Equities research analysts anticipate that AST SpaceMobile, Inc. will post -0.4 EPS for the current fiscal year.

Insider Buying and Selling at AST SpaceMobile

In other news, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction on Friday, December 5th. The stock was sold at an average price of $73.52, for a total transaction of $2,940,800.00. Following the transaction, the chief technology officer directly owned 4,750 shares of the company's stock, valued at $349,220. This represents a 89.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, COO Shanti B. Gupta sold 10,000 shares of the company's stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $77.34, for a total value of $773,400.00. Following the completion of the sale, the chief operating officer owned 382,375 shares of the company's stock, valued at $29,572,882.50. This trade represents a 2.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have purchased 2,765 shares of company stock worth $187,236 and have sold 2,354,621 shares worth $164,348,075. 30.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AST SpaceMobile

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ASTS. Vanguard Group Inc. raised its holdings in AST SpaceMobile by 13.4% during the 3rd quarter. Vanguard Group Inc. now owns 19,919,888 shares of the company's stock valued at $977,668,000 after buying an additional 2,351,539 shares during the period. Clear Street Group Inc. bought a new position in AST SpaceMobile during the third quarter valued at $90,129,000. Voya Investment Management LLC raised its stake in shares of AST SpaceMobile by 1,992.5% in the first quarter. Voya Investment Management LLC now owns 843,554 shares of the company's stock valued at $19,182,000 after acquiring an additional 803,240 shares during the period. Y Intercept Hong Kong Ltd bought a new stake in shares of AST SpaceMobile in the 2nd quarter worth about $21,754,000. Finally, Van ECK Associates Corp boosted its stake in shares of AST SpaceMobile by 125.1% during the 3rd quarter. Van ECK Associates Corp now owns 782,041 shares of the company's stock worth $38,382,000 after purchasing an additional 434,615 shares during the period. 60.95% of the stock is owned by institutional investors.

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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