AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 7.4% - Here's Why

Key Points

• AST SpaceMobile shares fell 7.4% in Tuesday trading, dropping to as low as $82.25 after closing at $86.83 the prior day. Trading volume was also far below average, with about 2.8 million shares changing hands versus a 16.1 million daily average.
• Analyst sentiment remains cautious overall. The stock has an average rating of "Reduce" and a consensus price target of $79.45, even after a mix of hold, buy, and sell calls from different firms.
• The company’s latest earnings report disappointed, as AST SpaceMobile posted a larger-than-expected loss and revenue well below estimates. Insiders have also been selling shares recently, which may have added to investor concerns.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price was down 7.4% during trading on Tuesday . The stock traded as low as $82.25 and last traded at $80.42. Approximately 2,802,422 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 16,141,646 shares. The stock had previously closed at $86.83.

Wall Street Analyst Weigh In

Several equities analysts recently commented on ASTS shares. Zacks Research raised shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research note on Wednesday, March 4th. UBS Group decreased their price target on shares of AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating for the company in a research report on Tuesday, May 12th. Roth Mkm restated a "buy" rating and issued a $108.00 price target on shares of AST SpaceMobile in a research report on Tuesday, May 12th. Wall Street Zen cut shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research report on Wednesday, April 15th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a research report on Friday, March 27th. Two equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $79.45.

AST SpaceMobile Price Performance

The stock has a market cap of $33.14 billion, a P/E ratio of -48.24 and a beta of 2.60. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47. The business has a 50 day simple moving average of $84.51 and a 200-day simple moving average of $83.05.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its quarterly earnings data on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing the consensus estimate of ($0.23) by ($0.43). The firm had revenue of $14.74 million for the quarter, compared to analysts' expectations of $39.01 million. AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. AST SpaceMobile's revenue was up 1952.2% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.20) EPS. On average, sell-side analysts forecast that AST SpaceMobile, Inc. will post -1.47 EPS for the current year.

Insiders Place Their Bets

In other news, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the company's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $91.42, for a total value of $154,499,800.00. Following the sale, the insider directly owned 29,330,155 shares of the company's stock, valued at $2,681,362,770.10. This represents a 5.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $88.88, for a total transaction of $3,555,200.00. Following the sale, the chief technology officer directly owned 4,750 shares in the company, valued at $422,180. This trade represents a 89.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 3,095,000 shares of company stock worth $275,597,100. 20.89% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On AST SpaceMobile

Several institutional investors have recently made changes to their positions in the business. Bank of America Corp DE raised its stake in AST SpaceMobile by 140.3% during the 1st quarter. Bank of America Corp DE now owns 1,644,246 shares of the company's stock worth $136,259,000 after acquiring an additional 960,045 shares during the period. Amundi raised its position in shares of AST SpaceMobile by 79.7% during the 1st quarter. Amundi now owns 223,765 shares of the company's stock valued at $18,543,000 after purchasing an additional 99,236 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of AST SpaceMobile by 251.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 721 shares of the company's stock valued at $60,000 after purchasing an additional 516 shares during the period. California State Teachers Retirement System raised its position in shares of AST SpaceMobile by 26.5% during the 1st quarter. California State Teachers Retirement System now owns 261,676 shares of the company's stock valued at $21,685,000 after purchasing an additional 54,887 shares during the period. Finally, Royal Bank of Canada raised its position in shares of AST SpaceMobile by 10.0% during the 1st quarter. Royal Bank of Canada now owns 326,082 shares of the company's stock valued at $27,022,000 after purchasing an additional 29,521 shares during the period. 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.

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