AST SpaceMobile (NASDAQ:ASTS) Stock Price Up 11% - Should You Buy?

Key Points

• AST SpaceMobile shares jumped 11% in mid-day trading, with volume surging well above average, after recent positive industry news helped lift sentiment around satellite-to-phone connectivity.
• Major U.S. carriers AT&T, Verizon, and T-Mobile announced a satellite-to-phone joint venture to reduce coverage gaps, which could support AST SpaceMobile’s direct-to-device broadband strategy.
• Despite the rally, analyst and fundamental views remain mixed: the company recently missed earnings and revenue estimates, and Wall Street’s average rating is still “Reduce” with a price target below the current share price.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price shot up 11% during mid-day trading on Thursday . The stock traded as high as $84.51 and last traded at $83.01. 27,002,444 shares traded hands during mid-day trading, an increase of 67% from the average session volume of 16,148,940 shares. The stock had previously closed at $74.81.

Key AST SpaceMobile News

Here are the key news stories impacting AST SpaceMobile this week:

• Positive Sentiment: AT&T, Verizon, and T-Mobile announced a satellite-to-phone joint venture aimed at eliminating coverage dead zones, which could strengthen the market outlook for AST SpaceMobile’s direct-to-device broadband model. Article Title
• Positive Sentiment: AST SpaceMobile publicly welcomed the carrier collaboration, reinforcing investor confidence that its technology could benefit from broader industry adoption of satellite connectivity. Article Title
• Positive Sentiment: New Street Research launched space-sector coverage and included AST SpaceMobile among the names under review, which is adding attention to the stock alongside the sector-wide optimism. Article Title
• Neutral Sentiment: Analyst commentary remains mixed, with some recent coverage noting that AST SpaceMobile’s post-earnings outlook has weakened somewhat after its latest quarterly miss. Article Title
• Negative Sentiment: Recent reports also highlight execution and competition risks after ASTS’s Q1 earnings miss, reminding investors that the company still needs to prove commercial momentum. Article Title

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on ASTS. Deutsche Bank Aktiengesellschaft set a $117.00 price target on shares of AST SpaceMobile in a research report on Wednesday, April 15th. UBS Group dropped 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. Zacks Research upgraded AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. Barclays raised their target price on AST SpaceMobile from $60.00 to $65.00 and gave the stock an "underweight" rating in a research report on Thursday, April 9th. Finally, New Street Research initiated coverage on AST SpaceMobile in a research report on Wednesday. They set a "neutral" rating and a $80.00 target price for the company. Two research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, AST SpaceMobile has an average rating of "Reduce" and an average price target of $79.45.

AST SpaceMobile Price Performance

The company has a debt-to-equity ratio of 1.11, a quick ratio of 16.27 and a current ratio of 18.47. The firm has a market cap of $31.71 billion, a P/E ratio of -46.63 and a beta of 2.60. The company has a 50-day moving average of $85.27 and a 200 day moving average of $82.89.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted its quarterly earnings data on Monday, May 11th. The company reported ($0.66) earnings per share 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 analyst estimates of $39.01 million. AST SpaceMobile had a negative return on equity of 24.87% and a negative net margin of 573.67%.The business's quarterly revenue was up 1952.2% on a year-over-year basis. During the same period in the previous year, the business posted ($0.20) EPS. On average, sell-side analysts anticipate that AST SpaceMobile, Inc. will post -0.99 EPS for the current year.

Insider Activity at AST SpaceMobile

In other news, CTO Huiwen Yao sold 40,000 shares of the firm's stock in a transaction that occurred on 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 completion of the sale, the chief technology officer owned 4,750 shares of the company's stock, valued at approximately $422,180. This trade represents a 89.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Hiroshi Mikitani sold 1,350,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $86.22, for a total transaction of $116,397,000.00. Following the sale, the insider directly owned 27,980,155 shares of the company's stock, valued at approximately $2,412,448,964.10. The trade was a 4.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 3,080,000 shares of company stock valued at $274,452,000. Company insiders own 20.89% of the company's stock.

Institutional Trading of AST SpaceMobile

Several hedge funds have recently modified their holdings of ASTS. AQR Capital Management LLC increased its holdings in shares of AST SpaceMobile by 11.8% during the first quarter. AQR Capital Management LLC now owns 34,548 shares of the company's stock worth $786,000 after buying an additional 3,642 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of AST SpaceMobile by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,764 shares of the company's stock worth $1,814,000 after buying an additional 3,515 shares in the last quarter. Millennium Management LLC increased its holdings in shares of AST SpaceMobile by 16.1% during the first quarter. Millennium Management LLC now owns 467,626 shares of the company's stock worth $10,634,000 after buying an additional 64,989 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of AST SpaceMobile by 18.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 325,621 shares of the company's stock valued at $7,405,000 after purchasing an additional 49,811 shares in the last quarter. Finally, Strs Ohio acquired a new stake in shares of AST SpaceMobile in the first quarter valued at approximately $168,000. Institutional investors and hedge funds 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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