AST SpaceMobile (NASDAQ:ASTS) Trading 2.5% Higher - Still a Buy?

Key Points

• AST SpaceMobile shares rose 2.5% on Wednesday, trading between $72.96 and an intraday high of $77.68 as volume came in slightly below average. The move comes after a volatile week for the stock.
• The company’s recent Q1 earnings miss remains the biggest concern: EPS and revenue both came in well below expectations, and investors are also weighing higher capital spending and ongoing losses. That pressure helped trigger a sharp selloff earlier in the week.
• Despite the weak results, some traders are still optimistic because ASTS is being viewed as a potential short-squeeze candidate with significant long-term upside potential. Analyst sentiment is mixed, with an average rating of “Reduce” and an average price target of $83.83.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price traded up 2.5% on Wednesday . The company traded as high as $77.68 and last traded at $74.81. 14,848,624 shares changed hands during mid-day trading, a decline of 7% from the average session volume of 16,013,395 shares. The stock had previously closed at $72.96.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile is being highlighted by traders as a potential short-squeeze candidate, which can add upward pressure if bearish bets are forced to cover. Short Squeeze Candidates: AST SpaceMobile, Wolfspeed
• Positive Sentiment: Commentary around the company continues to emphasize its large addressable market and “5X” upside potential, keeping speculative interest in the stock elevated. Easy 5X? AST Spacemobile Could Be Bigger Than Verizon and AT&T
• Neutral Sentiment: Broader market futures were slightly higher despite fresh inflation data and Fed jitters, which may be helping risk appetite for high-volatility names like ASTS. US Stock Market Today: S&P 500 Futures Rise On Fresh Inflation And Fed Jitters
• Negative Sentiment: The main recent drag remains AST SpaceMobile’s first-quarter miss, with wider-than-expected losses and revenue below estimates, sparking a sharp selloff earlier in the week. AST SpaceMobile shares fall after Q1 earnings miss on revenue, wider loss
• Negative Sentiment: Investors are also weighing higher capex and continued losses, which reinforce concerns that profitability is still a long way off despite revenue growth and operational progress. Ast Spacemobile shares sink after earnings miss and rising capex shock

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Roth Mkm reissued a "buy" rating and issued a $108.00 price objective on shares of AST SpaceMobile in a report on Tuesday. UBS Group reduced their price target on shares of AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating on the stock in a research report on Tuesday. Wall Street Zen lowered shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a report on Wednesday, April 15th. Barclays boosted their price objective on shares of AST SpaceMobile from $60.00 to $65.00 and gave the company an "underweight" rating in a research report on Thursday, April 9th. Finally, B. Riley Financial raised their target price on shares of AST SpaceMobile from $75.00 to $85.00 and gave the stock a "neutral" rating in a report on Tuesday. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, AST SpaceMobile currently has an average rating of "Reduce" and an average target price of $83.83.

AST SpaceMobile Price Performance

The company has a market capitalization of $28.58 billion, a P/E ratio of -42.03 and a beta of 2.60. The company has a quick ratio of 16.27, a current ratio of 16.35 and a debt-to-equity ratio of 0.92. The business has a 50 day simple moving average of $85.51 and a 200-day simple moving average of $82.87.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted 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). The firm had revenue of $14.74 million for the quarter, compared to analyst estimates of $39.01 million. AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 28.24%. The company's revenue for the quarter was up 1952.2% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.20) earnings per share. Analysts predict that AST SpaceMobile, Inc. will post -0.99 EPS for the current fiscal year.

Insider Activity at AST SpaceMobile

In related news, 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 value of $116,397,000.00. Following the sale, the insider directly owned 27,980,155 shares in the company, valued at $2,412,448,964.10. This trade represents a 4.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of AST SpaceMobile stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $88.88, for a total value of $3,555,200.00. Following the sale, the chief technology officer directly owned 4,750 shares in the company, valued at $422,180. The trade was a 89.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 3,080,000 shares of company stock worth $274,452,000. 20.89% of the stock is owned by insiders.

Institutional Investors Weigh In On AST SpaceMobile

Institutional investors have recently bought and sold shares of the stock. Calton & Associates Inc. raised its holdings in AST SpaceMobile by 0.8% during the 4th quarter. Calton & Associates Inc. now owns 13,579 shares of the company's stock worth $986,000 after buying an additional 104 shares during the period. Investmark Advisory Group LLC increased its position in shares of AST SpaceMobile by 2.7% in the fourth quarter. Investmark Advisory Group LLC now owns 4,645 shares of the company's stock worth $337,000 after acquiring an additional 120 shares in the last quarter. ORG Partners LLC increased its position in shares of AST SpaceMobile by 4.2% in the fourth quarter. ORG Partners LLC now owns 3,283 shares of the company's stock worth $238,000 after acquiring an additional 133 shares in the last quarter. Atlantic Union Bankshares Corp raised its holdings in shares of AST SpaceMobile by 18.2% during the fourth quarter. Atlantic Union Bankshares Corp now owns 923 shares of the company's stock valued at $67,000 after acquiring an additional 142 shares during the period. Finally, Larson Financial Group LLC lifted its position in shares of AST SpaceMobile by 39.0% in the 4th quarter. Larson Financial Group LLC now owns 513 shares of the company's stock valued at $37,000 after acquiring an additional 144 shares in the last quarter. 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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