AST SpaceMobile (NASDAQ:ASTS) Trading 2.8% Higher - What's Next?

Key Points

• AST SpaceMobile's stock traded up 2.8% to $73.70 with a trading volume of approximately 9.2 million shares, which is down 25% from its average daily volume.
• Analysts have aggressively downgraded AST SpaceMobile's ratings, with price targets ranging from $42.90 to $60.00, reflecting a consensus average target of $45.27.
• The company reported a significant earnings miss for the last quarter, with an EPS of ($0.41) compared to an expected ($0.19), and revenues of just $1.16 million, far below the anticipated $6.37 million.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares were up 2.8% during mid-day trading on Friday . The company traded as high as $74.26 and last traded at $73.70. Approximately 9,222,097 shares were traded during trading, a decline of 25% from the average daily volume of 12,289,293 shares. The stock had previously closed at $71.72.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on ASTS shares. Scotiabank downgraded AST SpaceMobile from a "sector perform" rating to a "sector underperform" rating and set a $42.90 price target on the stock. in a research report on Tuesday, October 7th. Roth Capital reissued a "buy" rating on shares of AST SpaceMobile in a research report on Tuesday, August 12th. Barclays downgraded AST SpaceMobile from an "overweight" rating to an "underweight" rating and set a $60.00 price target on the stock. in a research report on Friday, October 17th. Zacks Research downgraded AST SpaceMobile from a "hold" rating to a "strong sell" rating in a research report on Tuesday. Finally, UBS Group downgraded AST SpaceMobile from a "buy" rating to a "neutral" rating and dropped their price target for the stock from $62.00 to $43.00 in a research report on Tuesday, September 9th. Three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $45.27.

AST SpaceMobile Stock Performance

The business has a 50-day moving average of $57.10 and a two-hundred day moving average of $43.80. The company has a market cap of $26.42 billion, a P/E ratio of -38.99 and a beta of 2.41. 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 released its quarterly earnings results on Monday, August 11th. The company reported ($0.41) 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 during the quarter, compared to analysts' expectations of $6.37 million. On average, sell-side analysts predict that AST SpaceMobile, Inc. will post -0.4 EPS for the current fiscal year.

Insider Transactions at AST SpaceMobile

In other AST SpaceMobile news, CTO Huiwen Yao sold 40,000 shares of the 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 directly owned 4,750 shares in the company, valued at approximately $192,755. This trade represents a 89.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Andrew Martin Johnson sold 20,000 shares of the 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 completion of the sale, the chief financial officer 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 ownership of the stock. The disclosure for this sale can be found here. Company insiders own 34.15% of the company's stock.

Institutional Investors Weigh In On AST SpaceMobile

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Atlantic Union Bankshares Corp purchased a new stake in AST SpaceMobile in the second quarter valued at about $28,000. Sunbelt Securities Inc. raised its stake in AST SpaceMobile by 61.9% in the first quarter. Sunbelt Securities Inc. now owns 1,321 shares of the company's stock valued at $30,000 after buying an additional 505 shares during the last quarter. Geneos Wealth Management Inc. raised its stake in shares of AST SpaceMobile by 225.0% in the third quarter. Geneos Wealth Management Inc. now owns 650 shares of the company's stock worth $32,000 after purchasing an additional 450 shares during the last quarter. Binnacle Investments Inc purchased a new position in shares of AST SpaceMobile in the second quarter worth about $33,000. Finally, GAMMA Investing LLC raised its stake in shares of AST SpaceMobile by 388.7% in the first quarter. GAMMA Investing LLC now owns 1,559 shares of the company's stock worth $35,000 after purchasing an additional 1,240 shares during the last quarter. 60.95% of the stock is currently owned by hedge funds and other 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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