AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 4.7% - Should You Sell?

Key Points

• AST SpaceMobile shares fell 4.7% to $61.44 on Thursday with ~9.39M shares traded (about 23% below average), while sell‑side analysts have an average rating of “Reduce” and an average price target of $45.27, indicating potential downside from current levels.
• The company missed Q3 expectations, reporting EPS of ($0.45) vs. ($0.18) expected and revenue of $14.74M vs. $22.04M expected; revenue surged 1,236% year‑over‑year but the firm remains deeply unprofitable with a negative net margin and ROE.
• Insiders have been trimming positions (CTO sold 40,000 shares, CFO sold 20,000), although insiders still own 30.9% of the stock and institutional investors hold about 60.95%.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price was down 4.7% during trading on Thursday . The company traded as low as $59.87 and last traded at $61.44. Approximately 9,387,031 shares traded hands during trading, a decline of 23% from the average daily volume of 12,118,478 shares. The stock had previously closed at $64.49.

Wall Street Analyst Weigh In

ASTS has been the subject of several analyst reports. William Blair initiated coverage on AST SpaceMobile in a research report on Thursday, August 21st. They set a "market perform" rating for the company. Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a research report on Wednesday, October 8th. Barclays cut 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. Scotiabank cut shares of AST SpaceMobile from a "sector perform" rating to a "sector underperform" rating and set a $42.90 price target on the stock. in a research report on Tuesday, October 7th. Finally, Roth Capital reissued a "buy" rating on shares of AST SpaceMobile in a research report on Tuesday, August 12th. Three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $45.27.

AST SpaceMobile Stock Down 4.7%

The company has a market cap of $22.03 billion, a price-to-earnings ratio of -49.55 and a beta of 2.46. The stock's fifty day moving average is $64.04 and its two-hundred day moving average is $48.97. The company has a debt-to-equity ratio of 0.43, a quick ratio of 8.23 and a current ratio of 9.56.

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

Insider Transactions at AST SpaceMobile

In related news, CTO Huiwen Yao sold 40,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $40.58, for a total value of $1,623,200.00. Following the completion of the transaction, the chief technology officer directly owned 4,750 shares of the company's stock, valued at approximately $192,755. This trade represents a 89.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Andrew Martin Johnson sold 20,000 shares of the stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $52.48, for a total transaction of $1,049,600.00. Following the completion of the sale, the chief financial officer directly owned 397,485 shares in the company, valued at approximately $20,860,012.80. The trade was a 4.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 30.90% of the company's stock.

Hedge Funds Weigh In On AST SpaceMobile

Several institutional investors have recently modified their holdings of the company. REAP Financial Group LLC bought a new stake in shares of AST SpaceMobile in the 3rd quarter worth approximately $25,000. Atlantic Union Bankshares Corp bought a new stake in AST SpaceMobile during the 2nd quarter valued at approximately $28,000. Geneos Wealth Management Inc. lifted its position in AST SpaceMobile by 225.0% during the third quarter. Geneos Wealth Management Inc. now owns 650 shares of the company's stock valued at $32,000 after buying an additional 450 shares during the period. Binnacle Investments Inc bought a new position in shares of AST SpaceMobile during the second quarter valued at approximately $33,000. Finally, BOKF NA bought a new stake in AST SpaceMobile in the third quarter worth $38,000. 60.95% of the stock is currently owned by institutional investors.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc, together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.

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