AST SpaceMobile (NASDAQ:ASTS) Stock Price Up 7.6% - Time to Buy?

Key Points

• AST SpaceMobile's stock price increased by 7.6% to $72.90, significantly above its previous close of $67.76, with an increase in trading volume by 35%.
• While analysts remain divided, there is a consensus "Hold" rating for the stock, with price targets ranging from $42.90 to $60.00 from various institutions.
• AST SpaceMobile is facing considerable financial challenges, having reported a revenue of $1.16 million for the quarter, which was below analysts' expectations of $6.37 million.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) traded up 7.6% on Monday . The stock traded as high as $74.77 and last traded at $72.90. 16,035,567 shares traded hands during mid-day trading, an increase of 35% from the average session volume of 11,900,341 shares. The stock had previously closed at $67.76.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on ASTS shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of AST SpaceMobile in a research report on Saturday, September 27th. Scotiabank decreased their price target on shares of AST SpaceMobile from $45.40 to $42.90 and set a "sector perform" rating for the company in a report on Thursday, August 7th. Barclays lifted their price objective on shares of AST SpaceMobile from $37.00 to $60.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 1st. Zacks Research raised AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research report on Monday, August 18th. Finally, Bank of America started coverage on AST SpaceMobile in a research note on Wednesday, June 25th. They issued a "neutral" rating and a $55.00 target price for the company. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $45.27.

AST SpaceMobile Stock Performance

The company has a market capitalization of $26.14 billion, a price-to-earnings ratio of -38.57 and a beta of 2.41. The firm has a fifty day simple moving average of $48.58 and a 200 day simple moving average of $38.69. The company has a debt-to-equity ratio of 0.42, a current ratio of 8.23 and a quick ratio of 8.23.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its earnings results on Monday, August 11th. The company reported ($0.41) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.22). AST SpaceMobile had a negative net margin of 7,213.90% and a negative return on equity of 26.81%. The business had revenue of $1.16 million for the quarter, compared to analysts' expectations of $6.37 million. On average, analysts anticipate that AST SpaceMobile, Inc. will post -0.4 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Andrew Martin Johnson sold 20,000 shares of the firm's stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $52.48, for a total value of $1,049,600.00. Following the transaction, the chief financial officer directly owned 397,485 shares of the company's stock, valued at approximately $20,860,012.80. This trade represents a 4.79% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Huiwen Yao sold 40,000 shares of AST SpaceMobile stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $40.58, for a total value of $1,623,200.00. Following the completion of the sale, the chief technology officer owned 4,750 shares in the company, valued at approximately $192,755. The trade was a 89.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. 41.80% of the stock is owned by company insiders.

Institutional Trading of AST SpaceMobile

A number of institutional investors have recently made changes to their positions in ASTS. Rakuten Group Inc. acquired a new position in AST SpaceMobile in the 1st quarter valued at $705,398,000. Alphabet Inc. purchased a new stake in shares of AST SpaceMobile during the first quarter worth $203,375,000. Northern Trust Corp grew its holdings in shares of AST SpaceMobile by 2.7% during the first quarter. Northern Trust Corp now owns 1,266,315 shares of the company's stock worth $28,796,000 after buying an additional 33,259 shares in the last quarter. Oppenheimer & Co. Inc. raised its position in shares of AST SpaceMobile by 4.1% in the first quarter. Oppenheimer & Co. Inc. now owns 888,654 shares of the company's stock valued at $20,208,000 after buying an additional 34,591 shares during the last quarter. Finally, Voya Investment Management LLC lifted its stake in shares of AST SpaceMobile by 1,992.5% in the first quarter. Voya Investment Management LLC now owns 843,554 shares of the company's stock worth $19,182,000 after buying an additional 803,240 shares in the last quarter. 60.95% of the stock is owned by institutional investors and hedge funds.

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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