AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 9.2% - Time to Sell?

Key Points

• AST SpaceMobile shares fell 9.2% to $62.35, with trading volume below average. The stock is well below its 50-day and 200-day moving averages of $70.26 and $83.00, respectively.
• The company reported a quarterly loss of $0.77 per share, missing estimates by $0.45, while revenue of $31.52 million also fell short of expectations. Analysts expect a full-year loss of approximately $1.95 per share.
• Analyst sentiment is mixed, with four Buy, six Hold, and two Sell ratings; the consensus is Hold with an average price target of $85.98. Meanwhile, the CTO and CFO sold shares under pre-arranged trading plans, though institutional investors own about 60.95% of the stock.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) dropped 9.2% on Monday . The stock traded as low as $62.31 and last traded at $62.35. 10,758,474 shares were traded during mid-day trading, a decline of 39% from the average session volume of 17,629,963 shares. The stock had previously closed at $68.65.

Analyst Ratings Changes

Several equities research analysts recently weighed in on ASTS shares. Roth Capital reaffirmed a "buy" rating and set a $108.00 price target on shares of AST SpaceMobile in a report on Tuesday, May 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft set a $93.00 price objective on shares of AST SpaceMobile in a research report on Wednesday, August 12th. New Street Research set a $106.00 target price on shares of AST SpaceMobile in a report on Friday, May 29th. Finally, Cantor Fitzgerald boosted their price target on shares of AST SpaceMobile from $80.00 to $90.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 11th. Four research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $85.98.

AST SpaceMobile Stock Down 9.2%

The company has a market cap of $24.26 billion, a PE ratio of -29.14 and a beta of 2.76. The company has a quick ratio of 12.90, a current ratio of 13.05 and a debt-to-equity ratio of 1.24. The firm's fifty day simple moving average is $70.26 and its 200-day simple moving average is $83.00.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.77) earnings per share for the quarter, missing analysts' consensus estimates of ($0.32) by ($0.45). The business had revenue of $31.52 million for the quarter, compared to analysts' expectations of $34.53 million. AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%.During the same period in the prior year, the company earned ($0.41) EPS. As a group, equities research analysts expect that AST SpaceMobile, Inc. will post -1.95 earnings per share for the current fiscal year.

Insider Buying and Selling

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

Institutional Trading of AST SpaceMobile

Several large investors have recently modified their holdings of ASTS. Compass Financial Management LLC purchased a new position in AST SpaceMobile in the second quarter valued at about $26,000. Grove Bank & Trust acquired a new position in shares of AST SpaceMobile in the 2nd quarter valued at approximately $27,000. Continuum Advisory LLC acquired a new position in shares of AST SpaceMobile in the 2nd quarter valued at approximately $28,000. Cornerstone Planning Group LLC boosted its stake in shares of AST SpaceMobile by 16,350.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company's stock valued at $27,000 after buying an additional 327 shares during the last quarter. Finally, Laurel Wealth Advisors LLC purchased a new position in shares of AST SpaceMobile during the 4th quarter valued at approximately $25,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

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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