AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 3.8% - What's Next?

Key Points

• ASTS shares fell 3.8% to $71.52 on Thursday, with trading volume down 48% from the average session.
• AST SpaceMobile’s second-quarter results missed expectations, reporting a $0.77-per-share loss and $31.5 million in revenue versus estimates of a $0.32 loss and $34.5 million in revenue. Rising operating costs, delays, elevated valuation and competition from SpaceX’s Starlink remain key risks.
• Investors are also watching the company’s progress toward commercial service, including its planned U.K. direct-to-cell rollout with Vodafone and expansion to 45 satellites by early 2027. Analysts have a consensus Hold rating and an average price target of $85.98.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price dropped 3.8% during trading on Thursday . The stock traded as low as $71.26 and last traded at $71.52. Approximately 9,363,415 shares traded hands during trading, a decline of 48% from the average session volume of 18,013,055 shares. The stock had previously closed at $74.31.

AST SpaceMobile News Roundup

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

• Positive Sentiment: Analyst commentary remained supportive, with Cantor Fitzgerald reportedly upgrading ASTS and forecasting further upside, helping reinforce the long-term investment case. AST SpaceMobile Stock Price Up 4.2% After Analyst Upgrade
• Positive Sentiment: AST SpaceMobile is accelerating plans for direct-to-cell service in the United Kingdom with Vodafone, suggesting commercial revenue could begin sooner as carrier demand builds. ASTS Stock Rises Overnight: AST SpaceMobile Clears The Runway For Imminent UK Direct-To-Cell Service With Vodafone
• Positive Sentiment: SpaceX has launched six AST satellites this year, bringing 13 BlueBird satellites into orbit. The deployment progress supports ASTS’s goal of building a commercial network and pursuing its long-term revenue targets. SpaceX Is Helping AST SpaceMobile Chase Its $1 Billion Revenue Goal
• Neutral Sentiment: Investors remain focused on whether AST SpaceMobile can reach its revenue goals by expanding to 45 satellites by early 2027; execution and launch timing are critical to the company’s outlook. AST SpaceMobile Targets 45 Satellites by Early 2027
• Negative Sentiment: Second-quarter revenue and adjusted loss missed analyst estimates as operating costs rose sharply. The company reported a $0.77-per-share loss and $31.5 million in revenue versus expectations of a $0.32 loss and $34.5 million in revenue, increasing concerns about cash usage and execution. Does ASTS Stock Warrant Caution After Lackluster Q2 Performance?
• Negative Sentiment: Analysts have flagged ASTS’s very elevated valuation, mounting delays and direct competition from SpaceX’s Starlink. Those risks are weighing on the stock despite its substantial long-term growth opportunity. ASTS And RKLB Chase The SpaceX Playbook

Analysts Set New Price Targets

Several research firms recently issued reports on ASTS. Scotiabank raised AST SpaceMobile from a "sector underperform" rating to a "sector perform" rating and set a $50.80 target price on the stock in a research note on Wednesday, July 29th. UBS Group dropped their price objective on AST SpaceMobile from $80.00 to $78.00 and set a "neutral" rating for the company in a report on Tuesday. Deutsche Bank Aktiengesellschaft set a $93.00 price objective on AST SpaceMobile in a research report on Wednesday. Wall Street Zen cut AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research note on Wednesday, April 15th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a report on Wednesday, June 24th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $85.98.

AST SpaceMobile Price Performance

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 business's 50 day moving average price is $73.62 and its two-hundred day moving average price is $85.17. The stock has a market cap of $27.76 billion, a P/E ratio of -33.42 and a beta of 2.75.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.32) by ($0.45). AST SpaceMobile had a negative return on equity of 23.32% and a negative net margin of 536.66%.The company had revenue of $31.52 million during the quarter, compared to the consensus estimate of $34.53 million. During the same period in the previous year, the company earned ($0.41) earnings per share. As a group, sell-side analysts expect that AST SpaceMobile, Inc. will post -1.38 earnings per share for the current fiscal year.

Insider Activity at AST SpaceMobile

In other news, CFO Andrew Martin Johnson sold 45,809 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $93.81, for a total value of $4,297,342.29. Following the completion of the transaction, the chief financial officer owned 503,619 shares in the company, valued at $47,244,498.39. This trade represents a 8.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $96.37, for a total value of $3,854,800.00. Following the completion of the transaction, the chief technology officer owned 34,750 shares of the company's stock, valued at approximately $3,348,857.50. The trade was a 53.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 90,809 shares of company stock valued at $8,603,392 in the last three months. Corporate insiders own 20.89% of the company's stock.

Institutional Trading of AST SpaceMobile

Hedge funds have recently modified their holdings of the business. AQR Capital Management LLC increased its stake in shares of AST SpaceMobile by 11.8% in the 1st quarter. AQR Capital Management LLC now owns 34,548 shares of the company's stock worth $786,000 after acquiring an additional 3,642 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in AST SpaceMobile by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,764 shares of the company's stock worth $1,814,000 after acquiring an additional 3,515 shares in the last quarter. Millennium Management LLC boosted its stake in AST SpaceMobile by 16.1% during the first quarter. Millennium Management LLC now owns 467,626 shares of the company's stock worth $10,634,000 after acquiring an additional 64,989 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in AST SpaceMobile by 18.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 325,621 shares of the company's stock worth $7,405,000 after purchasing an additional 49,811 shares during the period. Finally, Strs Ohio purchased a new stake in AST SpaceMobile in the first quarter worth about $168,000. Institutional investors own 60.95% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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