AST SpaceMobile (NASDAQ:ASTS) Trading Down 9.4% - Here's Why

Key Points

• AST SpaceMobile's shares fell by 9.4% to $36.92, with trading volume declining 21% from the average.
• Analysts have mixed ratings on the stock, with a consensus rating of "Hold" and a target price of $42.82.
• Insider transactions included COO Shanti B. Gupta selling 10,000 shares, resulting in a 3.17% decrease in ownership.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s share price was down 9.4% on Tuesday . The stock traded as low as $36.08 and last traded at $36.92. Approximately 9,167,620 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 11,648,870 shares. The stock had previously closed at $40.77.

Analysts Set New Price Targets

Several research analysts have commented on ASTS shares. William Blair started coverage on shares of AST SpaceMobile in a report on Thursday, August 21st. They set a "market perform" rating for the company. B. Riley reaffirmed a "buy" rating and issued a $44.00 price target (up previously from $36.00) on shares of AST SpaceMobile in a report on Monday, June 16th. UBS Group downgraded shares of AST SpaceMobile from a "buy" rating to a "neutral" rating and lowered their price target for the company from $62.00 to $43.00 in a report on Tuesday. Roth Capital reaffirmed a "buy" rating on shares of AST SpaceMobile in a report on Tuesday, August 12th. Finally, Scotiabank lowered their price target on shares of AST SpaceMobile from $45.40 to $42.90 and set a "sector perform" rating for the company in a report on Thursday, August 7th. Three investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $42.82.

AST SpaceMobile Trading Down 9.0%

The firm has a market capitalization of $13.31 billion, a PE ratio of -19.63 and a beta of 2.43. The stock's 50-day moving average price is $49.29 and its 200 day moving average price is $35.75. The company has a debt-to-equity ratio of 0.42, a current ratio of 8.23 and a quick ratio of 8.23.

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

Insider Buying and Selling

In other news, COO Shanti B. Gupta sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $41.84, for a total transaction of $418,400.00. Following the transaction, the chief operating officer directly owned 305,667 shares of the company's stock, valued at approximately $12,789,107.28. This trade represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, 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 directly owned 397,485 shares in the company, valued at approximately $20,860,012.80. This trade represents a 4.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 41.80% of the company's stock.

Hedge Funds Weigh In On AST SpaceMobile

Institutional investors have recently bought and sold shares of the business. Atlantic Union Bankshares Corp purchased a new position in AST SpaceMobile during the second quarter valued at approximately $28,000. Sunbelt Securities Inc. lifted its stake in shares of 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. Binnacle Investments Inc acquired a new stake in shares of AST SpaceMobile during the second quarter worth $33,000. GAMMA Investing LLC lifted its stake in shares of 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. Finally, Chapman Financial Group LLC acquired a new stake in shares of AST SpaceMobile during the second quarter worth $38,000. 60.95% of the stock is owned by hedge funds and other institutional investors.

AST SpaceMobile Company Profile

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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