AST SpaceMobile (NASDAQ:ASTS) Trading Down 6.1% - Here's Why

Key Points

• AST SpaceMobile shares fell 6.1% in Tuesday trading, closing near $82.25 after touching a low of $82.11. Volume was higher than normal, suggesting elevated investor reaction.
• Near-term sentiment is mixed despite a key catalyst: the company confirmed BlueBird 8, 9, and 10 are set for a June 17 Falcon 9 launch, but concerns about dilution and a cautious analyst stance continue to pressure the stock.
• Wall Street remains guarded on ASTS with an average rating of “Reduce” and an average price target of $81.33. Recent analyst moves included downgrades from Deutsche Bank and others, while the company also posted a weaker-than-expected latest quarter with a large earnings miss.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s share price traded down 6.1% during mid-day trading on Tuesday . The company traded as low as $82.11 and last traded at $82.25. 19,779,886 shares were traded during trading, an increase of 9% from the average session volume of 18,205,889 shares. The stock had previously closed at $87.57.

Trending Headlines about AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile confirmed that BlueBird 8, 9, and 10 are secured for a June 17 Falcon 9 launch, a key operational catalyst that could support progress toward its satellite deployment goals. AST SpaceMobile Announces Launch Date for Its Next 3 BlueBird Satellites
• Positive Sentiment: Some coverage remains constructive on ASTS’s long-term opportunity, highlighting its direct-to-device satellite network ambitions and potential defense revenue, which reinforces the growth story behind the stock. AST SpaceMobile: Beyond Space-Based Connectivity, A Defense Powerhouse In The Making
• Neutral Sentiment: Articles discussing the stock’s recent pullback and whether it is a buying opportunity suggest investors are reassessing valuation after a sharp run-up, but they do not point to a clear new business development. Back Below $90, Is AST SpaceMobile Stock Finally a Buy?
• Neutral Sentiment: Broader commentary on SpaceX’s public debut is lifting attention across the space sector and creating temporary trading rotation, which may be affecting ASTS more through market sentiment than company-specific fundamentals. Gravity Check: Houston, SpaceX Has a Valuation Problem
• Negative Sentiment: Some traders and analysts are focused on shareholder dilution and a cautious “Reduce” rating, which can weigh on sentiment even as ASTS funds its long-term satellite buildout. 3 Stocks Diluting Shareholders to Fund Big Long-Term Opportunities

Wall Street Analyst Weigh In

ASTS has been the topic of a number of analyst reports. Zacks Research raised AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. B. Riley Financial lifted their price target 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. Deutsche Bank Aktiengesellschaft cut shares of AST SpaceMobile from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $117.00 to $106.00 in a research note on Friday, May 29th. Finally, New Street Research set a $106.00 price objective on shares of AST SpaceMobile in a research note on Friday, May 29th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $81.33.

AST SpaceMobile Stock Down 6.1%

The firm has a market capitalization of $31.92 billion, a PE ratio of -46.21 and a beta of 2.70. The company has a fifty day moving average price of $90.32 and a 200-day moving average price of $88.38. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last released 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). The company had revenue of $14.74 million for the quarter, compared to analysts' expectations of $39.01 million. AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. The business's quarterly revenue was up 1952.2% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.20) EPS. As a group, analysts expect that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current year.

Insider Transactions at AST SpaceMobile

In other news, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $91.42, for a total transaction of $154,499,800.00. Following the transaction, the insider owned 29,330,155 shares of the company's stock, valued at approximately $2,681,362,770.10. This represents a 5.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Julio A. Torres sold 15,000 shares of the stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $76.34, for a total value of $1,145,100.00. Following the transaction, the director directly owned 43,239 shares in the company, valued at $3,300,865.26. The trade was a 25.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,185,809 shares of company stock worth $284,200,492 over the last quarter. 20.89% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AST SpaceMobile

Institutional investors have recently added to or reduced their stakes in the business. 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 worth $986,000 after purchasing an additional 104 shares during the last quarter. Investmark Advisory Group LLC raised its stake in shares of AST SpaceMobile by 2.7% in the fourth quarter. Investmark Advisory Group LLC now owns 4,645 shares of the company's stock worth $337,000 after purchasing an additional 120 shares during the last quarter. ORG Partners LLC raised its stake in shares of AST SpaceMobile by 4.2% in the fourth quarter. ORG Partners LLC now owns 3,283 shares of the company's stock worth $238,000 after purchasing an additional 133 shares during the last quarter. Atlantic Union Bankshares Corp raised its stake in shares of AST SpaceMobile by 18.2% in the fourth quarter. Atlantic Union Bankshares Corp now owns 923 shares of the company's stock worth $67,000 after purchasing an additional 142 shares during the last quarter. Finally, Larson Financial Group LLC raised its stake in shares of AST SpaceMobile by 39.0% in the fourth quarter. Larson Financial Group LLC now owns 513 shares of the company's stock worth $37,000 after purchasing an additional 144 shares during the last quarter. Institutional investors and hedge funds own 60.95% of the company's stock.

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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