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

Key Points

• Shares jumped 8.9% mid-day to about $121.23 on Wednesday with roughly 18.3 million shares traded, above the stock's average volume and up from a $111.34 close.
• Wall Street sentiment is broadly negative: the MarketBeat consensus rating is “Reduce” with a $45.66 average price target, and analyst coverage is mixed (3 Buys, 5 Holds, 4 Sells) after several recent downgrades.
• Fundamentals remain weak—AST is unprofitable (missed EPS, a massively negative net margin) despite huge YoY revenue growth—and insiders sold large blocks late last year (about 2.35M shares worth ~$164M), though insiders still own ~30.9%.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) rose 8.9% during mid-day trading on Wednesday . The company traded as high as $124.32 and last traded at $121.23. Approximately 18,328,066 shares changed hands during trading, an increase of 2% from the average daily volume of 17,896,912 shares. The stock had previously closed at $111.34.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of AST SpaceMobile in a report on Tuesday, January 20th. Scotiabank downgraded shares of AST SpaceMobile from a "sector perform" rating to a "sector underperform" rating and set a $45.60 price target for the company. in a report on Wednesday, January 7th. Barclays lowered shares of AST SpaceMobile from an "overweight" rating to an "underweight" rating and set a $60.00 price objective for the company. in a research report on Friday, October 17th. B. Riley cut shares of AST SpaceMobile from a "buy" rating to a "neutral" rating in a research note on Tuesday, January 13th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Monday, December 29th. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $45.66.

AST SpaceMobile Price Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 9.56 and a quick ratio of 9.48. The firm has a market cap of $44.49 billion, a price-to-earnings ratio of -97.77 and a beta of 2.70. The stock's fifty day moving average price is $80.00 and its 200-day moving average price is $66.01.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced 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). AST SpaceMobile had a negative net margin of 1,639.59% and a negative return on equity of 27.76%. The firm had revenue of $14.74 million for the quarter, compared to analyst estimates of $22.04 million. During the same period last year, the firm earned ($1.10) earnings per share. AST SpaceMobile's revenue for the quarter was up 1236.4% compared to the same quarter last year. Equities research analysts predict that AST SpaceMobile, Inc. will post -0.4 EPS for the current fiscal year.

Insider Activity at AST SpaceMobile

In other news, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $73.52, for a total value of $2,940,800.00. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Maya Bernal sold 6,000 shares of the firm's stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $73.76, for a total transaction of $442,560.00. Following the sale, the chief accounting officer owned 122,486 shares of the company's stock, valued at approximately $9,034,567.36. This represents a 4.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have bought 2,765 shares of company stock worth $187,236 and have sold 2,354,621 shares worth $164,348,075. Insiders own 30.90% of the company's stock.

Hedge Funds Weigh In On AST SpaceMobile

A number of hedge funds have recently modified their holdings of ASTS. West Michigan Advisors LLC raised its holdings in shares of AST SpaceMobile by 18.6% during the fourth quarter. West Michigan Advisors LLC now owns 9,483 shares of the company's stock worth $689,000 after acquiring an additional 1,487 shares in the last quarter. Investmark Advisory Group LLC raised its stake in shares of AST SpaceMobile by 2.7% during the 4th quarter. Investmark Advisory Group LLC now owns 4,645 shares of the company's stock worth $337,000 after purchasing an additional 120 shares in the last quarter. M&T Bank Corp lifted its holdings in shares of AST SpaceMobile by 1,062.9% during the 4th quarter. M&T Bank Corp now owns 77,994 shares of the company's stock valued at $5,665,000 after buying an additional 71,287 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of AST SpaceMobile by 13.6% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 45,429 shares of the company's stock valued at $3,300,000 after buying an additional 5,423 shares during the last quarter. Finally, GF Fund Management CO. LTD. bought a new stake in shares of AST SpaceMobile in the 4th quarter valued at approximately $44,000. 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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