AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 7.7% - Here's Why

Key Points

• Stock down 7.7% — AST SpaceMobile fell to about $104.78 Monday (intraday low $103.75) on ~11.73M shares traded, roughly 37% below its average daily volume.
• Missed quarterly estimates — the company reported EPS of ($0.45) vs. ($0.18) expected and revenue of $14.74M vs. $22.04M expected, while showing a very large negative net margin and negative return on equity.
• Valuation and sentiment disconnect — despite a $38.46B market cap, analysts' consensus rating is "Reduce" with an average price target of $45.66, and insiders have sold significant stock (about 2.35M shares worth ~$164M in the past 90 days) though they still own ~30.9%.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) dropped 7.7% during trading on Monday . The stock traded as low as $103.75 and last traded at $104.78. Approximately 11,732,446 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 18,537,602 shares. The stock had previously closed at $113.57.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on ASTS shares. Zacks Research cut shares of AST SpaceMobile from a "hold" rating to a "strong sell" rating in a research note on Friday, January 9th. B. Riley downgraded shares of AST SpaceMobile from a "buy" rating to a "neutral" rating in a research note on Tuesday, January 13th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of AST SpaceMobile in a research 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 objective for the company. in a report on Wednesday, January 7th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a report on Monday, December 29th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average price target of $45.66.

AST SpaceMobile Stock Down 7.7%

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 company has a market capitalization of $38.46 billion, a PE ratio of -84.50 and a beta of 2.70. The business's 50 day simple moving average is $77.98 and its 200 day simple moving average is $65.12.

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

Insider Activity at AST SpaceMobile

In other AST SpaceMobile news, CFO Andrew Martin Johnson sold 10,000 shares of AST SpaceMobile stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $56.00, for a total value of $560,000.00. Following the completion of the transaction, the chief financial officer directly owned 387,485 shares of the company's stock, valued at $21,699,160. The trade was a 2.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Maya Bernal sold 6,000 shares of the stock in a transaction dated 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 directly owned 122,486 shares in the company, valued at $9,034,567.36. This represents a 4.67% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders bought 2,765 shares of company stock worth $187,236 and sold 2,354,621 shares worth $164,348,075. Insiders own 30.90% of the company's stock.

Institutional Trading of AST SpaceMobile

Large investors have recently modified their holdings of the stock. AQR Capital Management LLC grew its stake in AST SpaceMobile by 11.8% during the 1st quarter. AQR Capital Management LLC now owns 34,548 shares of the company's stock worth $786,000 after purchasing an additional 3,642 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in AST SpaceMobile by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,764 shares of the company's stock valued at $1,814,000 after acquiring an additional 3,515 shares in the last quarter. Millennium Management LLC lifted its stake in AST SpaceMobile by 16.1% in 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 during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in AST SpaceMobile by 18.1% during the 1st 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 acquiring an additional 49,811 shares in the last quarter. Finally, Strs Ohio purchased a new stake in shares of AST SpaceMobile in the 1st quarter valued at approximately $168,000. Hedge funds and other institutional investors own 60.95% of the company's stock.

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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