AST SpaceMobile (NASDAQ:ASTS) Trading Down 9.2% - Should You Sell?

Key Points

• AST SpaceMobile (NASDAQ:ASTS) shares dropped by 9.2%, closing at $71.35 after trading as low as $66.67, with a notable increase in trading volume.
• Analysts have mixed opinions on AST SpaceMobile, with ratings ranging from "buy" to "sell", but the consensus rating is currently "hold" with an average price target of $45.27.
• The company reported earnings of ($0.41) per share, missing analysts’ estimates, and generated revenue of only $1.16 million against expectations of $6.37 million.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) shares fell 9.2% during trading on Wednesday . The company traded as low as $66.67 and last traded at $71.35. 27,482,856 shares were traded during trading, an increase of 123% from the average session volume of 12,297,703 shares. The stock had previously closed at $78.61.

Wall Street Analyst Weigh In

A number of brokerages have commented on ASTS. William Blair began coverage on shares of AST SpaceMobile in a research note on Thursday, August 21st. They set a "market perform" rating for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Wednesday, October 8th. Zacks Research upgraded shares of AST SpaceMobile from a "strong sell" rating to a "hold" rating in a research note on Monday, August 18th. Roth Capital reiterated a "buy" rating on shares of AST SpaceMobile in a research note on Tuesday, August 12th. Finally, Scotiabank cut shares of AST SpaceMobile from a "sector perform" rating to a "sector underperform" rating and set a $42.90 target price for the company. in a research note on Tuesday, October 7th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $45.27.

AST SpaceMobile Stock Down 9.2%

The business's 50 day moving average price is $56.21 and its 200-day moving average price is $43.25. The company has a debt-to-equity ratio of 0.42, a current ratio of 8.23 and a quick ratio of 8.23. The company has a market cap of $25.58 billion, a P/E ratio of -37.75 and a beta of 2.41.

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

Insider Buying and Selling

In related news, CFO Andrew Martin Johnson sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $52.48, for a total value of $1,049,600.00. Following the completion of the sale, the chief financial officer owned 397,485 shares of the company's stock, valued at $20,860,012.80. This trade represents a 4.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CTO Huiwen Yao sold 40,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $40.58, for a total transaction of $1,623,200.00. Following the completion of the sale, the chief technology officer directly owned 4,750 shares of the company's stock, valued at approximately $192,755. This represents a 89.39% decrease in their position. The disclosure for this sale can be found here. Company insiders own 41.80% of the company's stock.

Institutional Trading of AST SpaceMobile

A number of hedge funds and other institutional investors have recently modified their holdings of ASTS. Geneos Wealth Management Inc. grew its holdings in AST SpaceMobile by 225.0% during the 3rd quarter. Geneos Wealth Management Inc. now owns 650 shares of the company's stock worth $32,000 after acquiring an additional 450 shares during the period. Encompass Wealth Advisors LLC grew its holdings in AST SpaceMobile by 2.6% during the 3rd quarter. Encompass Wealth Advisors LLC now owns 43,257 shares of the company's stock worth $2,123,000 after acquiring an additional 1,100 shares during the period. Global Retirement Partners LLC grew its holdings in AST SpaceMobile by 35.9% during the 3rd quarter. Global Retirement Partners LLC now owns 3,545 shares of the company's stock worth $174,000 after acquiring an additional 936 shares during the period. Yarbrough Capital LLC grew its holdings in AST SpaceMobile by 28.0% during the 3rd quarter. Yarbrough Capital LLC now owns 99,372 shares of the company's stock worth $4,877,000 after acquiring an additional 21,739 shares during the period. Finally, Miracle Mile Advisors LLC grew its holdings in AST SpaceMobile by 140.9% during the 3rd quarter. Miracle Mile Advisors LLC now owns 11,330 shares of the company's stock worth $556,000 after acquiring an additional 6,626 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.