AST SpaceMobile (NASDAQ:ASTS) Trading 8.3% Higher - Still a Buy?

Key Points

• AST SpaceMobile shares jumped 8.3% on Wednesday, hitting an intraday high of $131.20 as trading volume more than doubled versus its average session volume.
• The move was helped by a broader space-stock rally after SpaceX’s IPO filing, while investors also focused on ASTS’s direct-to-cell satellite connectivity strategy and planned mid-June satellite launch.
• Despite the surge, analysts remain cautious: the stock’s consensus rating is “Reduce” with an average price target of $79.45, well below the current share price, and the company recently posted a wider-than-expected quarterly loss.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) traded up 8.3% on Wednesday . The company traded as high as $131.20 and last traded at $129.60. 34,802,459 shares were traded during mid-day trading, an increase of 103% from the average session volume of 17,131,365 shares. The stock had previously closed at $119.70.

Key AST SpaceMobile News

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

• Positive Sentiment: SpaceX’s public IPO filing has lifted sentiment across the space sector, with ASTS benefiting from the broad “space stocks” rally. Space stocks surge after SpaceX IPO S-1 filing
• Positive Sentiment: ASTS is being viewed as a leading pure-play on direct-to-cell satellite connectivity, and recent coverage highlighted its partnerships with major carriers plus a planned mid-June satellite launch as tangible growth catalysts. AST SpaceMobile’s June Launch Plan Puts Its 2026 Satellite Goal Back in Focus
• Positive Sentiment: Momentum traders and Reddit-focused investors are also crowding into the name, amplifying the move in a stock that already has elevated short interest. Social Buzz: Wallstreetbets Stocks Mostly Advancing Pre-Bell Wednesday; Intuitive Machines, Rocket Lab to Open Higher

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft set a $117.00 price objective on shares of AST SpaceMobile in a report on Wednesday, April 15th. Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a report on Friday, March 27th. UBS Group dropped their price objective on shares of AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating for the company in a report on Tuesday, May 12th. B. Riley Financial lifted their price objective on shares of AST SpaceMobile from $75.00 to $85.00 and gave the company a "neutral" rating in a report on Tuesday, May 12th. Finally, Zacks Research upgraded shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 4th. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, AST SpaceMobile presently has an average rating of "Reduce" and an average price target of $79.45.

AST SpaceMobile Stock Up 8.3%

The business's 50 day moving average is $86.05 and its 200-day moving average is $84.15. The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37. The company has a market cap of $50.30 billion, a PE ratio of -72.81 and a beta of 2.60.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its quarterly 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 during the quarter, compared to analysts' expectations of $39.01 million. During the same quarter in the prior year, the firm earned ($0.20) EPS. The firm's revenue was up 1952.2% compared to the same quarter last year. As a group, analysts predict that AST SpaceMobile, Inc. will post -1.47 EPS for the current year.

Insider Activity

In related news, Director Julio A. Torres sold 15,000 shares of AST SpaceMobile stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total value of $1,145,100.00. Following the completion of the transaction, the director owned 43,239 shares in the company, valued at $3,300,865.26. The trade was a 25.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Hiroshi Mikitani sold 1,690,000 shares of AST SpaceMobile stock in a transaction that occurred on 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 completion of the transaction, the insider owned 29,330,155 shares of the company's stock, valued at $2,681,362,770.10. This represents a 5.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,100,000 shares of company stock worth $276,048,350 over the last three months. Insiders own 20.89% of the company's stock.

Institutional Trading of AST SpaceMobile

Institutional investors have recently modified their holdings of the stock. Cornerstone Planning Group LLC lifted its position in shares of AST SpaceMobile by 16,350.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company's stock worth $27,000 after buying an additional 327 shares during the last quarter. Crewe Advisors LLC purchased a new stake in shares of AST SpaceMobile during the 4th quarter worth approximately $25,000. Laurel Wealth Advisors LLC purchased a new stake in shares of AST SpaceMobile during the 4th quarter worth approximately $25,000. Portus Wealth Advisors LLC purchased a new stake in shares of AST SpaceMobile during the 1st quarter worth approximately $30,000. Finally, Advocate Investing Services LLC purchased a new stake in shares of AST SpaceMobile during the 1st quarter worth approximately $31,000. Hedge funds and other institutional investors 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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