AST SpaceMobile (NASDAQ:ASTS) Trading 9.1% Higher - Here's Why

Key Points

• AST SpaceMobile shares rose 9.1% in mid-day trading Friday, reaching as high as $73.20 as volume climbed to 21.95 million shares, above the average daily volume.
• Analyst sentiment remains mixed, with one Buy rating, six Hold ratings, and three Sell ratings; the average rating is “Reduce” and the average price target is $85.09.
• The company recently reported a larger-than-expected quarterly loss, missing EPS and revenue estimates, while insiders have been active sellers, including a CFO sale of 45,809 shares in June.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price was up 9.1% during mid-day trading on Friday . The company traded as high as $73.20 and last traded at $71.5670. 21,954,581 shares changed hands during trading, an increase of 18% from the average session volume of 18,648,451 shares. The stock had previously closed at $65.62.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Zacks Research upgraded shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. Wall Street Zen lowered shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research note on Wednesday, April 15th. William Blair restated a "market perform" rating on shares of AST SpaceMobile in a research report on Friday, May 29th. Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Wednesday. Finally, Roth Mkm reaffirmed a "buy" rating and set a $108.00 price target on shares of AST SpaceMobile in a report on Tuesday, May 12th. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $85.09.

AST SpaceMobile Trading Up 9.1%

The company has a quick ratio of 18.37, a current ratio of 18.47 and a debt-to-equity ratio of 1.11. The stock has a market capitalization of $27.78 billion, a P/E ratio of -40.21 and a beta of 2.70. The firm's 50-day simple moving average is $87.49 and its 200 day simple moving average is $89.25.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued 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 company had revenue of $14.73 million during the quarter, compared to analyst estimates of $39.01 million. During the same quarter in the previous year, the firm earned ($0.20) earnings per share. The business's revenue was up 1952.2% compared to the same quarter last year. Equities research analysts anticipate that AST SpaceMobile, Inc. will post -1.47 EPS for the current fiscal year.

Insider Activity at AST SpaceMobile

In other news, CFO Andrew Martin Johnson sold 45,809 shares of the stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $93.81, for a total transaction of $4,297,342.29. Following the transaction, the chief financial officer owned 503,619 shares of the company's stock, valued at approximately $47,244,498.39. This represents a 8.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Julio A. Torres sold 15,000 shares of the 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 transaction, the director owned 43,239 shares in the company, valued at approximately $3,300,865.26. This trade represents a 25.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 3,145,809 shares of company stock worth $280,645,292. Corporate insiders own 20.89% of the company's stock.

Institutional Investors Weigh In On AST SpaceMobile

Several hedge funds have recently modified their holdings of ASTS. Calton & Associates Inc. raised its stake in shares of AST SpaceMobile by 0.8% in the fourth quarter. Calton & Associates Inc. now owns 13,579 shares of the company's stock valued at $986,000 after purchasing an additional 104 shares in the last quarter. Investmark Advisory Group LLC raised its stake in shares of AST SpaceMobile by 2.7% in the 4th quarter. Investmark Advisory Group LLC now owns 4,645 shares of the company's stock valued at $337,000 after buying an additional 120 shares in the last quarter. ORG Partners LLC raised its stake in shares of AST SpaceMobile by 4.2% in the 4th quarter. ORG Partners LLC now owns 3,283 shares of the company's stock valued at $238,000 after buying an additional 133 shares in the last quarter. Atlantic Union Bankshares Corp lifted its holdings in shares of AST SpaceMobile by 18.2% during the 4th quarter. Atlantic Union Bankshares Corp now owns 923 shares of the company's stock worth $67,000 after acquiring an additional 142 shares during the period. Finally, Larson Financial Group LLC lifted its holdings in shares of AST SpaceMobile by 39.0% during the 4th quarter. Larson Financial Group LLC now owns 513 shares of the company's stock worth $37,000 after acquiring an additional 144 shares during the period. 60.95% of the stock is owned by institutional investors.

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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