AST SpaceMobile (NASDAQ:ASTS) Trading Down 1.1% - Time to Sell?

Key Points

• AST SpaceMobile's stock (NASDAQ:ASTS) dropped 1.1% during mid-day trading, with a significant 74% decline in trading volume compared to its average.
• Analysts have mixed ratings for AST SpaceMobile, with a consensus of "Moderate Buy" and a target price averaging around $45.34.
• The company's recent earnings report showed a loss of $0.20 per share, which missed analyst expectations, and a revenue of only $0.72 million compared to projected estimates of $3.85 million.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares dropped 1.1% during mid-day trading on Wednesday . The stock traded as low as $51.40 and last traded at $52.00. Approximately 3,105,594 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 12,028,079 shares. The stock had previously closed at $52.57.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on ASTS shares. Bank of America started coverage on shares of AST SpaceMobile in a research note on Wednesday, June 25th. They set a "neutral" rating and a $55.00 target price for the company. Roth Capital started coverage on shares of AST SpaceMobile in a research report on Thursday, April 10th. They set a "buy" rating and a $42.00 price target for the company. Scotiabank restated a "sector perform" rating and set a $45.40 price target on shares of AST SpaceMobile in a research report on Monday, June 23rd. Oppenheimer initiated coverage on shares of AST SpaceMobile in a report on Monday, May 5th. They issued a "market perform" rating for the company. Finally, B. Riley reaffirmed a "buy" rating and issued a $44.00 price objective (up previously from $36.00) on shares of AST SpaceMobile in a report on Monday, June 16th. Three equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $45.34.

AST SpaceMobile Stock Down 0.2%

The company has a market cap of $16.60 billion, a price-to-earnings ratio of -26.38 and a beta of 2.33. The company has a current ratio of 10.62, a quick ratio of 10.62 and a debt-to-equity ratio of 0.60. The business has a fifty day moving average price of $44.83 and a two-hundred day moving average price of $32.00.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its earnings results on Monday, May 12th. The company reported ($0.20) earnings per share for the quarter, missing analysts' consensus estimates of ($0.17) by ($0.03). The business had revenue of $0.72 million during the quarter, compared to analyst estimates of $3.85 million. AST SpaceMobile had a negative net margin of 7,033.22% and a negative return on equity of 23.56%. On average, equities analysts predict that AST SpaceMobile, Inc. will post -0.4 earnings per share for the current year.

Insider Buying and Selling

In other AST SpaceMobile news, CTO Huiwen Yao sold 55,000 shares of the stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $26.82, for a total transaction of $1,475,100.00. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Shanti B. Gupta sold 15,000 shares of the stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $36.08, for a total value of $541,200.00. Following the transaction, the chief operating officer owned 315,667 shares in the company, valued at approximately $11,389,265.36. This trade represents a 4.54% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 184,250 shares of company stock worth $6,146,750. Insiders own 41.80% of the company's stock.

Hedge Funds Weigh In On AST SpaceMobile

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Atlantic Union Bankshares Corp acquired a new stake in shares of AST SpaceMobile in the second quarter worth $28,000. Sunbelt Securities Inc. grew its stake in shares of AST SpaceMobile by 61.9% in the first quarter. Sunbelt Securities Inc. now owns 1,321 shares of the company's stock worth $30,000 after acquiring an additional 505 shares during the last quarter. GAMMA Investing LLC grew 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 acquiring an additional 1,240 shares during the last quarter. Financial Gravity Asset Management Inc. bought a new position in AST SpaceMobile in the first quarter worth $41,000. Finally, Close Asset Management Ltd lifted its position in AST SpaceMobile by 72.4% in the first quarter. Close Asset Management Ltd now owns 1,810 shares of the company's stock worth $41,000 after purchasing an additional 760 shares during the period. 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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