AST SpaceMobile (NASDAQ:ASTS) Reaches New 12-Month Low - Time to Sell?

Key Points

• AST SpaceMobile shares fell 11.3% to a new 52-week low of $36.54, well below their 50-day and 200-day moving averages. The decline follows a previous earnings miss, with analysts expecting another sizable loss this fiscal year.
• The company reported a positive technical milestone by completing an industry-first handoff between AT&T’s terrestrial network and AST’s direct-to-device satellite network. However, upcoming earnings, a securities class-action lawsuit, and intensifying competition from SpaceX remain significant risks.
• Analyst sentiment is mixed: six analysts rate ASTS a Buy, six a Hold, and two a Sell, producing an overall “Hold” consensus and an $80.67 price target. Vanguard reportedly increased its stake, while retail sentiment remains bearish.

AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report)'s stock price reached a new 52-week low during trading on Monday. The stock traded as low as $36.54 and last traded at $36.5520, with a volume of 12,893,843 shares. The stock had previously closed at $40.97.

Key Stories Impacting AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile and AT&T, with support from Ericsson and Nokia, completed what they described as an industry-first handoff between a conventional cellular network and AST’s direct-to-device satellite network. The test strengthens the company’s case that phones can transition between terrestrial and satellite coverage without dropping connectivity, supporting its path toward beta services and broader BlueBird satellite coverage. AT&T and AST SpaceMobile: Engineering the Connected World, One Handoff at a Time
• Positive Sentiment: Vanguard Capital Management reportedly increased its ASTS position 22.5% to 15.3 million shares, or approximately a 5.11% stake. The purchase may provide some institutional support, although retail sentiment remains bearish. ASTS Stock Jumps Overnight: Vanguard, Rakuten Unit Boost Holdings
• Neutral Sentiment: AST SpaceMobile is scheduled to report earnings next week. Analysts are focused on whether the company can meet expectations, with previews warning that current indicators do not suggest a likely earnings beat. The company’s prior quarter included a revenue shortfall and a larger-than-expected loss.
• Negative Sentiment: Multiple law firms publicized a securities class action and a November 13 lead-plaintiff deadline. The allegations include claims that AST’s disclosures about sufficient cash preceded approximately $3 billion of convertible-note offerings. These are allegations, not established findings, but the repeated notices add legal and reputational pressure. ASTS Deadline Alert
• Negative Sentiment: Competition is also weighing on the stock after reports that SpaceX is gaining ground in discussions to add satellite connectivity to Boost Mobile plans, intensifying the race for direct-to-device customers in the U.S. SpaceX Climbs on Reported Boost Mobile Talks

Analyst Upgrades and Downgrades

ASTS has been the subject of a number of analyst reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of AST SpaceMobile in a research note on Monday, September 21st. Deutsche Bank Aktiengesellschaft upgraded shares of AST SpaceMobile from a "hold" rating to a "buy" rating and set a $93.00 target price for the company in a report on Monday, October 12th. Cantor Fitzgerald boosted their price target on AST SpaceMobile from $80.00 to $90.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 11th. Berenberg Bank assumed coverage on AST SpaceMobile in a research note on Wednesday, September 2nd. They issued a "buy" rating and a $92.00 price target on the stock. Finally, Piper Sandler downgraded AST SpaceMobile from an "overweight" rating to a "neutral" rating and cut their price target for the stock from $98.00 to $54.00 in a research note on Tuesday, October 13th. Six research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $80.67.

AST SpaceMobile Trading Down 11.3%

The firm has a 50-day moving average price of $55.02 and a 200-day moving average price of $77.74. The company has a debt-to-equity ratio of 1.24, a quick ratio of 12.90 and a current ratio of 13.05. The stock has a market cap of $14.14 billion, a PE ratio of -16.98 and a beta of 2.88.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.32) by ($0.45). The firm had revenue of $31.52 million during the quarter, compared to the consensus estimate of $34.53 million. AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%. During the same quarter in the previous year, the firm earned ($0.41) EPS. As a group, equities analysts anticipate that AST SpaceMobile, Inc. will post -1.91 EPS for the current fiscal year.

Insider Transactions at AST SpaceMobile

In other news, Director Adriana Cisneros bought 10,822 shares of the company's stock in a transaction dated Monday, August 31st. The shares were purchased at an average price of $57.22 per share, for a total transaction of $619,234.84. Following the completion of the purchase, the director owned 797,023 shares in the company, valued at approximately $45,605,656.06. This represents a 1.38% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $58.93, for a total transaction of $2,357,200.00. Following the sale, the chief technology officer owned 34,750 shares in the company, valued at approximately $2,047,817.50. The trade was a 53.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 20.89% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Hollencrest Capital Management raised its position in AST SpaceMobile by 11.7% in the 1st quarter. Hollencrest Capital Management now owns 1,592 shares of the company's stock worth $132,000 after buying an additional 167 shares during the last quarter. Byrne Asset Management LLC lifted its stake in AST SpaceMobile by 17.0% during the 3rd quarter. Byrne Asset Management LLC now owns 1,170 shares of the company's stock valued at $67,000 after acquiring an additional 170 shares during the period. TD Waterhouse Canada Inc. boosted its holdings in shares of AST SpaceMobile by 15.5% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 1,404 shares of the company's stock valued at $121,000 after acquiring an additional 188 shares during the last quarter. MGO One Seven LLC boosted its holdings in shares of AST SpaceMobile by 1.9% during the 3rd quarter. MGO One Seven LLC now owns 12,536 shares of the company's stock valued at $738,000 after acquiring an additional 239 shares during the last quarter. Finally, Salvus Wealth Management LLC boosted its holdings in shares of AST SpaceMobile by 0.4% during the 3rd quarter. Salvus Wealth Management LLC now owns 70,662 shares of the company's stock valued at $4,159,000 after acquiring an additional 263 shares during the last quarter. 60.95% of the stock is owned by institutional investors.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc is a space-based communications company developing a global cellular broadband network designed to connect directly with standard, unmodified mobile phones. Its technology is intended to extend wireless coverage beyond traditional terrestrial networks, including in rural, remote and underserved areas.

The company is building and deploying a constellation of large low Earth orbit satellites, known as the BlueBird satellite system. AST SpaceMobile plans to provide voice, messaging, data and broadband services through partnerships with mobile network operators, allowing subscribers to remain connected outside the reach of conventional cellular towers.

Founded in 2017 and headquartered in Midland, Texas, AST SpaceMobile was established by Abel Avellan, who serves as its chairman and chief executive officer.

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