AST SpaceMobile (NASDAQ:ASTS) Trading 8.6% Higher - Here's Why

Key Points

• AST SpaceMobile's stock surged 8.6% to a last trading price of $81.20, with trading volume significantly increased by 257% compared to the average session.
• Analysts have mixed opinions on the stock, with four rating it as a Buy and a consensus target price of $45.27.
• Insider transactions revealed significant sell-offs, with the CTO selling 40,000 shares for $1.62 million, representing a major decrease in ownership.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price traded up 8.6% during trading on Wednesday . The stock traded as high as $91.41 and last traded at $81.20. 43,180,775 shares were traded during trading, an increase of 257% from the average session volume of 12,092,555 shares. The stock had previously closed at $74.75.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Bank of America initiated coverage on shares of AST SpaceMobile in a research note on Wednesday, June 25th. They set a "neutral" rating and a $55.00 price target on the stock. B. Riley reiterated a "buy" rating and set a $44.00 target price (up previously from $36.00) on shares of AST SpaceMobile in a research note on Monday, June 16th. Zacks Research upgraded shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research note on Monday, August 18th. Weiss Ratings reiterated a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Wednesday. Finally, Roth Capital reiterated a "buy" rating on shares of AST SpaceMobile in a research note on Tuesday, August 12th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $45.27.

AST SpaceMobile Trading Up 8.6%

The stock has a market cap of $29.11 billion, a PE ratio of -42.96 and a beta of 2.41. The business's fifty day moving average is $49.02 and its 200 day moving average is $38.94. The company has a quick ratio of 8.23, a current ratio of 8.23 and a debt-to-equity ratio of 0.42.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last released its quarterly earnings data on Monday, August 11th. The company reported ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.22). The company 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, analysts predict that AST SpaceMobile, Inc. will post -0.4 earnings per share for the current year.

Insider Transactions at AST SpaceMobile

In related news, CTO Huiwen Yao sold 40,000 shares of the business's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $40.58, for a total transaction of $1,623,200.00. Following the sale, the chief technology officer owned 4,750 shares of the company's stock, valued at approximately $192,755. The trade was a 89.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Andrew Martin Johnson sold 20,000 shares of the company's stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $52.48, for a total transaction of $1,049,600.00. Following the completion of the sale, the chief financial officer directly owned 397,485 shares in the company, valued at $20,860,012.80. This trade represents a 4.79% decrease in their position. The disclosure for this sale can be found here. 34.15% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AST SpaceMobile

Institutional investors have recently modified their holdings of the company. Rakuten Group Inc. purchased a new stake in AST SpaceMobile during the first quarter worth approximately $705,398,000. Alphabet Inc. purchased a new stake in AST SpaceMobile during the first quarter worth approximately $203,375,000. Voya Investment Management LLC grew its stake in AST SpaceMobile by 1,992.5% during the first quarter. Voya Investment Management LLC now owns 843,554 shares of the company's stock worth $19,182,000 after buying an additional 803,240 shares during the period. Jump Financial LLC purchased a new stake in AST SpaceMobile during the first quarter worth approximately $14,750,000. Finally, Y Intercept Hong Kong Ltd purchased a new stake in AST SpaceMobile during the second quarter worth approximately $21,754,000. Institutional investors and hedge funds own 60.95% of the company's stock.

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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