AST SpaceMobile (NASDAQ:ASTS) Trading Down 5.6% - Should You Sell?

Key Points

• AST SpaceMobile shares fell 5.6% on Thursday, trading as low as $77.12 before last changing hands at $80.66, well below the prior close of $85.43.
• The company recently successfully launched BlueBird 8, 9, and 10, a milestone that supports its plan for direct-to-phone satellite cellular service, but it still faces major execution and capital risks.
• Wall Street remains cautious overall: ASTS has a consensus “Reduce” rating with an average price target of $81.33, while the company also reported a wider-than-expected quarterly loss and weak profitability metrics.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price traded down 5.6% during mid-day trading on Thursday . The company traded as low as $77.12 and last traded at $80.66. Approximately 31,214,718 shares traded hands during trading, an increase of 69% from the average session volume of 18,454,025 shares. The stock had previously closed at $85.43.

Trending Headlines about AST SpaceMobile

Here are the key news stories impacting AST SpaceMobile this week:

• Positive Sentiment: AST SpaceMobile successfully launched BlueBird 8, 9, and 10, marking an important step toward large-scale direct-to-phone cellular service and validating its satellite deployment roadmap.
• Positive Sentiment: Analysts say ASTS could benefit from substantial operating leverage as commercial operations begin around FY27, with some seeing the stock as undervalued relative to its long-term growth potential. AST SpaceMobile: From Bear To Bull - FY27 Commercial Commencement Unlocks Substantial Operating Leverage
• Neutral Sentiment: Some commentary highlighted that the launch and rising interest in space-related investing are also keeping ASTS in the market’s spotlight, alongside broader enthusiasm for space ETFs and SpaceX-related themes.
• Negative Sentiment: Despite the recent momentum, ASTS remains a high-risk, unprofitable growth stock with meaningful execution risk, heavy capital needs, and rising competition in satellite communications.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on ASTS shares. New Street Research set a $106.00 target price on AST SpaceMobile in a research note on Friday, May 29th. B. Riley Financial lifted their price objective on shares of AST SpaceMobile from $75.00 to $85.00 and gave the company a "neutral" rating in a report on Tuesday, May 12th. Wall Street Zen lowered shares of AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research report on Wednesday, April 15th. William Blair restated a "market perform" rating on shares of AST SpaceMobile in a report on Friday, May 29th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of AST SpaceMobile in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, AST SpaceMobile currently has a consensus rating of "Reduce" and an average target price of $81.33.

AST SpaceMobile Stock Down 5.6%

The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37. The firm has a 50-day moving average of $89.92 and a 200 day moving average of $88.78. The stock has a market capitalization of $31.31 billion, a price-to-earnings ratio of -45.31 and a beta of 2.70.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.66) earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $39.01 million. During the same period last year, the firm earned ($0.20) EPS. The firm's revenue for the quarter was up 1952.2% compared to the same quarter last year. As a group, sell-side analysts forecast that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Huiwen Yao sold 40,000 shares of the company's stock in a transaction dated 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 sale, the chief technology officer directly owned 34,750 shares of the company's stock, valued at approximately $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 can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the business's stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $91.42, for a total value of $154,499,800.00. Following the transaction, the insider directly owned 29,330,155 shares in the company, valued at approximately $2,681,362,770.10. This trade represents a 5.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 3,185,809 shares of company stock valued at $284,200,492 over the last quarter. 20.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its stake in shares of AST SpaceMobile by 7.9% during the 4th quarter. Vanguard Group Inc. now owns 21,488,180 shares of the company's stock worth $1,560,687,000 after buying an additional 1,568,292 shares during the last quarter. Vodafone Ventures Ltd acquired a new stake in AST SpaceMobile during the fourth quarter worth approximately $397,413,000. Morgan Stanley lifted its position in shares of AST SpaceMobile by 44.0% during the 4th quarter. Morgan Stanley now owns 4,661,551 shares of the company's stock valued at $338,569,000 after acquiring an additional 1,425,199 shares during the period. Geode Capital Management LLC grew its holdings in shares of AST SpaceMobile by 9.8% during the 4th quarter. Geode Capital Management LLC now owns 4,522,549 shares of the company's stock worth $328,749,000 after purchasing an additional 402,505 shares in the last quarter. Finally, State Street Corp grew its holdings in shares of AST SpaceMobile by 9.7% during the 4th quarter. State Street Corp now owns 3,951,685 shares of the company's stock worth $287,011,000 after purchasing an additional 350,690 shares in the last quarter. 60.95% of the stock is 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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