AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 5.3% Following Analyst Downgrade

Key Points

• AST SpaceMobile's stock price dropped 5.3% following a downgrade by Scotiabank, which lowered its price target from $45.40 to $42.90.
• Analysts generally have a moderate buy rating for AST SpaceMobile, with a consensus target price of $44.99, but opinions vary with some rating it as a buy and others as neutral.
• Insider selling activity has increased, with over 184,000 shares sold in the last ninety days, indicating possible concerns among executives regarding the stock's future performance.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s share price fell 5.3% during trading on Thursday after Scotiabank lowered their price target on the stock from $45.40 to $42.90. Scotiabank currently has a sector perform rating on the stock. AST SpaceMobile traded as low as $49.43 and last traded at $49.03. 2,811,323 shares were traded during trading, a decline of 77% from the average session volume of 11,985,000 shares. The stock had previously closed at $51.79.

Several other analysts have also weighed in on ASTS. B. Riley restated a "buy" rating and issued a $44.00 price target (up previously from $36.00) on shares of AST SpaceMobile in a research report on Monday, June 16th. Bank of America initiated coverage on shares of AST SpaceMobile in a research report on Wednesday, June 25th. They set a "neutral" rating and a $55.00 target price for the company. Roth Capital started coverage on shares of AST SpaceMobile in a research report on Thursday, April 10th. They issued a "buy" rating and a $42.00 price target on the stock. Finally, Oppenheimer assumed coverage on AST SpaceMobile in a research report on Monday, May 5th. They set a "market perform" rating for the company. Three investment analysts have rated the stock with a hold rating and five have given a buy rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $44.99.

Insider Activity at AST SpaceMobile

In other news, CTO Huiwen Yao sold 55,000 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $26.82, for a total transaction of $1,475,100.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Shanti B. Gupta sold 15,000 shares of the business's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $36.08, for a total value of $541,200.00. Following the sale, the chief operating officer directly owned 315,667 shares of the company's stock, valued at approximately $11,389,265.36. This trade represents a 4.54% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 184,250 shares of company stock worth $6,146,750. 34.15% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AST SpaceMobile

Several institutional investors have recently bought and sold shares of ASTS. Penserra Capital Management LLC boosted its position in AST SpaceMobile by 320.5% during the 2nd quarter. Penserra Capital Management LLC now owns 398,563 shares of the company's stock worth $18,624,000 after purchasing an additional 303,784 shares during the period. Walkner Condon Financial Advisors LLC acquired a new position in shares of AST SpaceMobile during the second quarter worth $469,000. Flagship Private Wealth LLC boosted its stake in shares of AST SpaceMobile by 2.8% in the second quarter. Flagship Private Wealth LLC now owns 9,106 shares of the company's stock valued at $426,000 after purchasing an additional 250 shares during the period. Atlantic Union Bankshares Corp acquired a new stake in AST SpaceMobile during the 2nd quarter valued at $28,000. Finally, Bank of New York Mellon Corp raised its stake in shares of AST SpaceMobile by 28.2% in the 2nd quarter. Bank of New York Mellon Corp now owns 761,154 shares of the company's stock valued at $35,569,000 after purchasing an additional 167,416 shares in the last quarter. 60.95% of the stock is currently owned by hedge funds and other institutional investors.

AST SpaceMobile Stock Performance

The company has a fifty day moving average of $45.37 and a two-hundred day moving average of $32.13. The stock has a market capitalization of $15.10 billion, a P/E ratio of -23.97 and a beta of 2.33. The company has a debt-to-equity ratio of 0.60, a current ratio of 10.62 and a quick ratio of 10.62.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted its quarterly earnings results on Monday, May 12th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.17) by ($0.03). AST SpaceMobile had a negative net margin of 7,033.22% and a negative return on equity of 23.56%. The firm had revenue of $0.72 million for the quarter, compared to analyst estimates of $3.85 million. On average, equities analysts anticipate that AST SpaceMobile, Inc. will post -0.4 EPS for the current year.

About AST SpaceMobile

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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