AST SpaceMobile (NASDAQ:ASTS) Stock Rating Lowered by Scotiabank

Key Points

• AST SpaceMobile's stock rating has been dropped by Scotiabank from "sector perform" to "sector underperform".
• The company's shares traded down 2.8% recently, closing at $70.84 after exchanging over six million shares.
• AST SpaceMobile reported earnings of ($0.41) per share for the last quarter, missing estimates by $0.22, with revenue falling short of expectations.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) was downgraded by analysts at Scotiabank from a "sector perform" rating to a "sector underperform" rating in a research report issued on Tuesday, Marketbeat.com reports.

Other analysts have also recently issued research reports about the stock. Roth Capital reiterated a "buy" rating on shares of AST SpaceMobile in a report on Tuesday, August 12th. Zacks Research upgraded shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a report on Monday, August 18th. Bank of America started coverage on shares of AST SpaceMobile in a report on Wednesday, June 25th. They issued a "neutral" rating and a $55.00 price target on the stock. William Blair assumed coverage on shares of AST SpaceMobile in a report on Thursday, August 21st. They issued a "market perform" rating on the stock. Finally, B. Riley restated a "buy" rating and set a $44.00 target price (up previously from $36.00) on shares of AST SpaceMobile in a report on Monday, June 16th. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $45.27.

AST SpaceMobile Trading Down 2.8%

Shares of AST SpaceMobile stock traded down $2.06 during trading on Tuesday, reaching $70.84. 6,115,638 shares of the stock were exchanged, compared to its average volume of 11,866,430. The company has a quick ratio of 8.23, a current ratio of 8.23 and a debt-to-equity ratio of 0.42. The stock's fifty day moving average is $48.58 and its 200 day moving average is $38.69. The firm has a market cap of $25.40 billion, a price-to-earnings ratio of -37.35 and a beta of 2.41. AST SpaceMobile has a 1 year low of $17.50 and a 1 year high of $74.77.

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

Insider Activity

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Rakuten Group Inc. bought a new position in AST SpaceMobile in the 1st quarter worth approximately $705,398,000. Alphabet Inc. bought a new position in shares of AST SpaceMobile during the 1st quarter valued at approximately $203,375,000. Northern Trust Corp boosted its position in shares of AST SpaceMobile by 2.7% during the 1st quarter. Northern Trust Corp now owns 1,266,315 shares of the company's stock valued at $28,796,000 after acquiring an additional 33,259 shares during the last quarter. Oppenheimer & Co. Inc. boosted its position in shares of AST SpaceMobile by 4.1% during the 1st quarter. Oppenheimer & Co. Inc. now owns 888,654 shares of the company's stock valued at $20,208,000 after acquiring an additional 34,591 shares during the last quarter. Finally, Voya Investment Management LLC boosted its position in shares of AST SpaceMobile by 1,992.5% during the 1st quarter. Voya Investment Management LLC now owns 843,554 shares of the company's stock valued at $19,182,000 after acquiring an additional 803,240 shares during the last quarter. 60.95% of the stock is currently owned by institutional investors.

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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