AST SpaceMobile (NASDAQ:ASTS) Trading Down 2.9% - Should You Sell?

Key Points

• AST SpaceMobile's shares fell 2.9% to $47.37, with trading volume declining to 1.43 million shares—88% lower than its average of 11.61 million shares.
• The company reported a quarterly loss of ($0.41) EPS, significantly missing expectations, and recorded revenues of only $1.16 million against a forecast of $6.37 million.
• Five analysts rate the stock as a "Buy" while another five give it a "Hold," resulting in an average rating of "Moderate Buy" with a price target of $48.41.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares fell 2.9% on Wednesday . The company traded as low as $47.44 and last traded at $47.37. 1,431,831 shares were traded during mid-day trading, a decline of 88% from the average session volume of 11,606,340 shares. The stock had previously closed at $48.76.

Analyst Ratings Changes

A number of research firms have recently weighed in on ASTS. William Blair began coverage on shares of AST SpaceMobile in a research note on Thursday, August 21st. They issued a "market perform" rating on the stock. Roth Capital restated a "buy" rating on shares of AST SpaceMobile in a research note on Tuesday, August 12th. Scotiabank reduced their price target on shares of AST SpaceMobile from $45.40 to $42.90 and set a "sector perform" rating on the stock in a research note on Thursday, August 7th. UBS Group raised their price target on shares of AST SpaceMobile from $38.00 to $62.00 and gave the company a "buy" rating in a research note on Thursday, August 14th. Finally, B. Riley restated a "buy" rating and issued a $44.00 price target (up from $36.00) on shares of AST SpaceMobile in a research note on Monday, June 16th. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $48.41.

AST SpaceMobile Trading Down 6.0%

The business's fifty day moving average is $49.81 and its 200-day moving average is $35.39. The firm has a market cap of $16.43 billion, a P/E ratio of -24.25 and a beta of 2.43. The company has a debt-to-equity ratio of 0.42, a quick ratio of 8.23 and a current ratio of 8.23.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last issued its quarterly earnings data on Monday, August 11th. The company reported ($0.41) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.22). The business had revenue of $1.16 million during the quarter, compared to the consensus estimate of $6.37 million. AST SpaceMobile had a negative net margin of 7,213.90% and a negative return on equity of 26.81%. Analysts predict that AST SpaceMobile, Inc. will post -0.4 EPS for the current year.

Insider Activity

In other AST SpaceMobile news, President Scott Wisniewski sold 50,000 shares of the firm's stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $35.65, for a total transaction of $1,782,500.00. Following the completion of the transaction, the president owned 545,595 shares in the company, valued at approximately $19,450,461.75. This trade represents a 8.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew Martin Johnson sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $52.48, for a total transaction of $1,049,600.00. Following the transaction, the chief financial officer owned 397,485 shares of the company's stock, valued at approximately $20,860,012.80. The trade was a 4.79% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 149,250 shares of company stock worth $5,721,250 in the last 90 days. 41.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Rakuten Group Inc. bought a new stake in shares of AST SpaceMobile in the 1st quarter valued at $705,398,000. Alphabet Inc. bought a new stake in shares of AST SpaceMobile in the 1st quarter valued at $203,375,000. Northern Trust Corp increased its stake in shares of AST SpaceMobile by 2.7% in the 1st quarter. Northern Trust Corp now owns 1,266,315 shares of the company's stock valued at $28,796,000 after acquiring an additional 33,259 shares in the last quarter. Oppenheimer & Co. Inc. increased its stake in shares of AST SpaceMobile by 4.1% in the 1st quarter. Oppenheimer & Co. Inc. now owns 888,654 shares of the company's stock valued at $20,208,000 after acquiring an additional 34,591 shares in the last quarter. Finally, Voya Investment Management LLC increased its stake in shares of AST SpaceMobile by 1,992.5% in the 1st quarter. Voya Investment Management LLC now owns 843,554 shares of the company's stock valued at $19,182,000 after acquiring an additional 803,240 shares in the last quarter. Institutional investors 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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