AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 8% - Here's Why

Key Points

• AST SpaceMobile's stock price fell 8%, closing at $55.24 after previously trading at $60.06.
• Analysts have given the stock an average rating of "Moderate Buy" with a consensus price target of $45.34.
• The company reported (-0.20) EPS in its last earnings, missing expectations and showing a significant negative net margin.
• Insider transactions included notable sales by CTO Huiwen Yao and President Scott Wisniewski, collectively offloading 105,000 shares valued at over $3 million.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) were down 8% during mid-day trading on Friday . The stock traded as low as $54.21 and last traded at $55.24. Approximately 12,208,775 shares were traded during mid-day trading, an increase of 0% from the average daily volume of 12,197,926 shares. The stock had previously closed at $60.06.

Analyst Ratings Changes

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

AST SpaceMobile Stock Down 0.2%

The company has a 50-day simple moving average of $40.83 and a 200-day simple moving average of $30.51. The firm has a market cap of $17.16 billion, a PE ratio of -27.25 and a beta of 2.27. The company has a debt-to-equity ratio of 0.60, a current ratio of 10.62 and a quick ratio of 10.62.

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

Insider Activity at AST SpaceMobile

In related news, President Scott Wisniewski sold 50,000 shares of the business's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $35.65, for a total value of $1,782,500.00. Following the completion of the sale, the president owned 545,595 shares in the company, valued at approximately $19,450,461.75. The trade was a 8.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Huiwen Yao sold 4,250 shares of the business's stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $34.60, for a total value of $147,050.00. Following the completion of the sale, the chief technology officer owned 20,750 shares of the company's stock, valued at $717,950. The trade was a 17.00% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 184,250 shares of company stock worth $6,146,750. Company insiders own 41.80% of the company's stock.

Institutional Trading of AST SpaceMobile

Large investors have recently modified their holdings of the company. Sunbelt Securities Inc. lifted its holdings in AST SpaceMobile by 61.9% during the first quarter. Sunbelt Securities Inc. now owns 1,321 shares of the company's stock worth $30,000 after buying an additional 505 shares during the period. GAMMA Investing LLC lifted its holdings in AST SpaceMobile by 388.7% during the first quarter. GAMMA Investing LLC now owns 1,559 shares of the company's stock worth $35,000 after buying an additional 1,240 shares during the period. Summit Securities Group LLC purchased a new stake in AST SpaceMobile during the fourth quarter worth $37,000. Financial Gravity Asset Management Inc. purchased a new stake in AST SpaceMobile during the first quarter worth $41,000. Finally, Close Asset Management Ltd lifted its holdings in AST SpaceMobile by 72.4% during the first quarter. Close Asset Management Ltd now owns 1,810 shares of the company's stock worth $41,000 after buying an additional 760 shares during the period. Hedge funds and other 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.