AST SpaceMobile Sees Unusually High Options Volume (NASDAQ:ASTS)

Key Points

• AST SpaceMobile saw unusually heavy options activity on Friday, with 424,739 call options traded — about 189% above the typical volume of 147,023, signaling elevated bullish speculation.
• Insider selling has been significant, including recent sales by major shareholder Hiroshi Mikitani and Director Julio A. Torres; insiders sold 3.1 million shares worth $276.0 million over the last 90 days.
• Despite strong revenue growth, the company remains unprofitable: Q1 EPS missed expectations and revenue came in below estimates, while Wall Street’s consensus view is still cautious with an average rating of “Reduce.”

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) saw some unusual options trading on Friday. Stock investors purchased 424,739 call options on the company. This is an increase of 189% compared to the typical volume of 147,023 call options.

Insider Buying and Selling

In other AST SpaceMobile news, major shareholder Hiroshi Mikitani sold 1,690,000 shares of AST SpaceMobile 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 completion of the transaction, the insider directly owned 29,330,155 shares of the company's stock, valued at approximately $2,681,362,770.10. This trade represents a 5.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Julio A. Torres sold 15,000 shares of AST SpaceMobile stock in a transaction on Wednesday, May 13th. The shares were 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 of the company's stock, valued at approximately $3,300,865.26. The trade was a 25.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 3,100,000 shares of company stock valued at $276,048,350 in the last ninety days. Insiders own 20.89% of the company's stock.

Institutional Trading of AST SpaceMobile

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cornerstone Planning Group LLC increased its position in AST SpaceMobile by 16,350.0% in the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company's stock worth $27,000 after purchasing an additional 327 shares during the period. Crewe Advisors LLC bought a new position in shares of AST SpaceMobile during the 4th quarter valued at about $25,000. Laurel Wealth Advisors LLC bought a new position in shares of AST SpaceMobile during the 4th quarter valued at about $25,000. Portus Wealth Advisors LLC bought a new position in shares of AST SpaceMobile during the 1st quarter valued at about $30,000. Finally, Advocate Investing Services LLC bought a new stake in AST SpaceMobile in the 1st quarter valued at approximately $31,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: Defiance launched ASTY, a 2X long ETF on AST SpaceMobile, signaling strong trader demand for bullish exposure to ASTS. Defiance Launches ASTY: The 2X Long ETF for AST SpaceMobile, Inc.
• Positive Sentiment: ASTS is benefiting from broader enthusiasm for space infrastructure names ahead of the SpaceX IPO, which has lifted sentiment across satellite and launch stocks. SpaceX IPO Filing Is Moving Rocket Lab, CoreWeave, and Other Stocks
• Positive Sentiment: Commentary has also pointed to AST SpaceMobile’s FCC approval and its role as a likely beneficiary of rising satellite-to-phone demand, supporting the company’s long-term growth narrative. Forget SpaceX. These 2 Space Stocks Could Be the Real Winners Of the Coming IPO Frenzy
• Neutral Sentiment: Several articles focused on ASTS’s huge multi-year run and asked whether the stock is getting expensive, suggesting some investors are weighing valuation against future growth. Is It Too Late To Consider AST SpaceMobile (ASTS) After Its Recent 17x Three Year Surge?
• Negative Sentiment: ASTS CFO Andrew Martin Johnson sold 5,000 shares, a small insider sale that may prompt some caution, though his remaining stake is still substantial. SEC insider filing

AST SpaceMobile Stock Performance

Shares of NASDAQ:ASTS opened at $105.86 on Friday. AST SpaceMobile has a twelve month low of $22.47 and a twelve month high of $129.89. The firm has a market cap of $41.09 billion, a PE ratio of -59.47 and a beta of 2.60. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47. The business has a fifty day moving average of $85.01 and a 200-day moving average of $83.47.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing analysts' consensus estimates of ($0.23) by ($0.43). The firm had revenue of $14.74 million during the quarter, compared to analyst estimates of $39.01 million. AST SpaceMobile had a negative return on equity of 24.87% and a negative net margin of 573.67%.AST SpaceMobile's revenue for the quarter was up 1952.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.20) earnings per share. On average, equities research analysts predict that AST SpaceMobile will post -1.47 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ASTS. UBS Group lowered their target price on AST SpaceMobile from $85.00 to $80.00 and set a "neutral" rating for the company in a research note on Tuesday, May 12th. Wall Street Zen lowered AST SpaceMobile from a "sell" rating to a "strong sell" rating in a research note on Wednesday, April 15th. Weiss Ratings restated a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Friday, March 27th. New Street Research began coverage on AST SpaceMobile in a research note on Wednesday, May 13th. They issued a "neutral" rating and a $80.00 target price for the company. Finally, Barclays raised their target price on AST SpaceMobile from $60.00 to $65.00 and gave the company an "underweight" rating in a research note on Thursday, April 9th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $79.45.

AST SpaceMobile Company Profile

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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