AST SpaceMobile (NASDAQ:ASTS) Trading 1.7% Higher - Still a Buy?

Key Points

• AST SpaceMobile shares rose 1.7% in Wednesday trading, reaching as high as $92.57 with volume above average, but the stock remains volatile with a high beta of 2.60.
• Analyst sentiment is mixed to negative: the consensus rating is now “Reduce,” with an average price target of $79.45, even after some firms adjusted targets and Roth Mkm reiterated a buy rating.
• Recent earnings were weak, as the company missed EPS and revenue estimates for the quarter despite year-over-year revenue growth, while insiders have also been selling shares in recent months.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) traded up 1.7% during trading on Wednesday . The stock traded as high as $92.57 and last traded at $89.58. 19,586,515 shares traded hands during mid-day trading, an increase of 19% from the average session volume of 16,396,018 shares. The stock had previously closed at $88.10.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. UBS Group decreased their price target on AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 12th. B. Riley Financial boosted their price objective on shares of AST SpaceMobile from $75.00 to $85.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 12th. Roth Mkm restated a "buy" rating and issued a $108.00 price objective on shares of AST SpaceMobile in a research report on Tuesday, May 12th. Zacks Research upgraded shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. Finally, Wall Street Zen lowered shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a report on Wednesday, April 15th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $79.45.

AST SpaceMobile Stock Performance

The stock has a fifty day simple moving average of $84.48 and a 200-day simple moving average of $83.10. The stock has a market cap of $34.22 billion, a P/E ratio of -50.33 and a beta of 2.60. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last released its earnings results on Monday, May 11th. The company reported ($0.66) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.43). AST SpaceMobile had a negative return on equity of 24.87% and a negative net margin of 573.67%.The firm had revenue of $14.74 million for the quarter, compared to the consensus estimate of $39.01 million. During the same quarter last year, the company posted ($0.20) EPS. AST SpaceMobile's revenue for the quarter was up 1952.2% on a year-over-year basis. On average, equities analysts expect that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current year.

Insider Transactions at AST SpaceMobile

In other news, Director Julio A. Torres sold 15,000 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total transaction of $1,145,100.00. Following the completion of the transaction, the director directly owned 43,239 shares in the company, valued at $3,300,865.26. This represents a 25.76% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $91.42, for a total transaction of $154,499,800.00. Following the transaction, the insider owned 29,330,155 shares of the company's stock, valued at approximately $2,681,362,770.10. This represents a 5.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,095,000 shares of company stock worth $275,597,100 in the last three months. Insiders own 20.89% of the company's stock.

Hedge Funds Weigh In On AST SpaceMobile

A number of large investors have recently modified their holdings of ASTS. AQR Capital Management LLC boosted its stake in shares of 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 buying an additional 3,642 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in AST SpaceMobile by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 79,764 shares of the company's stock valued at $1,814,000 after purchasing an additional 3,515 shares during the last quarter. Millennium Management LLC lifted its stake in AST SpaceMobile by 16.1% in the 1st quarter. Millennium Management LLC now owns 467,626 shares of the company's stock valued at $10,634,000 after purchasing an additional 64,989 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in AST SpaceMobile by 18.1% in 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 valued at $7,405,000 after purchasing an additional 49,811 shares during the last quarter. Finally, Strs Ohio acquired a new stake in AST SpaceMobile in the 1st quarter valued at about $168,000. 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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