AST SpaceMobile (NASDAQ:ASTS) Trading Down 2.1% - Time to Sell?

Key Points

• AST SpaceMobile shares fell 2.1% to $65.06, with trading volume 54% below the average session volume. The stock remains below its 50-day and 200-day moving averages of $71.18 and $83.58, respectively.
• Analyst sentiment is mixed, with four Buy, six Hold, and two Sell ratings; the consensus rating is Hold and the average price target is $85.98.
• The company missed quarterly expectations, reporting a $0.77 per-share loss versus the $0.32 consensus estimate and revenue of $31.52 million versus $34.53 million expected. Two executives also sold shares under pre-arranged trading plans, while insiders retain 20.89% ownership.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) were down 2.1% on Thursday . The stock traded as low as $62.89 and last traded at $65.06. 8,199,889 shares were traded during mid-day trading, a decline of 54% from the average session volume of 17,712,814 shares. The stock had previously closed at $66.43.

Analysts Set New Price Targets

A number of equities analysts have issued reports on ASTS shares. New Street Research set a $106.00 price objective on AST SpaceMobile in a report on Friday, May 29th. Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a report on Wednesday, June 24th. B. Riley Financial upgraded shares of AST SpaceMobile from a "neutral" rating to a "buy" rating and set a $85.00 price target for the company in a research note on Friday, July 17th. Piper Sandler lowered their price target on shares of AST SpaceMobile from $100.00 to $98.00 and set an "overweight" rating for the company in a research report on Tuesday, August 11th. Finally, William Blair reissued a "market perform" rating on shares of AST SpaceMobile in a research note on Friday, May 29th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $85.98.

AST SpaceMobile Trading Down 2.1%

The stock's 50 day moving average is $71.18 and its 200-day moving average is $83.58. The company has a market cap of $25.32 billion, a P/E ratio of -30.40 and a beta of 2.75. The company has a current ratio of 13.05, a quick ratio of 12.90 and a debt-to-equity ratio of 1.24.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.77) earnings per share for the quarter, missing analysts' consensus estimates of ($0.32) by ($0.45). The firm had revenue of $31.52 million for the quarter, compared to the consensus estimate of $34.53 million. AST SpaceMobile had a negative net margin of 536.66% and a negative return on equity of 22.88%. During the same quarter in the prior year, the business posted ($0.41) earnings per share. Research analysts anticipate that AST SpaceMobile, Inc. will post -1.95 earnings per share for the current fiscal year.

Insider Buying and Selling at AST SpaceMobile

In other news, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $96.37, for a total value of $3,854,800.00. Following the transaction, the chief technology officer owned 34,750 shares in the company, valued at $3,348,857.50. This represents a 53.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew Martin Johnson sold 45,809 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $93.81, for a total value of $4,297,342.29. Following the completion of the transaction, the chief financial officer directly owned 503,619 shares in the company, valued at $47,244,498.39. This represents a 8.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 20.89% of the company's stock.

Hedge Funds Weigh In On AST SpaceMobile

A number of large investors have recently added to or reduced their stakes in ASTS. Laurel Wealth Advisors LLC acquired a new stake in shares of AST SpaceMobile in the fourth quarter worth approximately $25,000. Cornerstone Planning Group LLC lifted its holdings in AST SpaceMobile by 16,350.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company's stock valued at $27,000 after purchasing an additional 327 shares in the last quarter. Grove Bank & Trust acquired a new stake in AST SpaceMobile during the 2nd quarter worth $27,000. Acumen Wealth Advisors LLC purchased a new stake in shares of AST SpaceMobile during the fourth quarter worth $29,000. Finally, Harvest Fund Management Co. Ltd purchased a new stake in AST SpaceMobile during the 3rd quarter valued at about $29,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

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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