AST SpaceMobile (NASDAQ:ASTS) Stock Falls 4.9% - Time to Sell?

Key Points

• AST SpaceMobile shares fell 4.9% to $40.97, with the stock trading well below its 50-day and 200-day moving averages. The latest quarter also showed a wider-than-expected loss and revenue below analyst estimates.
• The company has several potential growth catalysts, including expanded FCC satellite spectrum, Brazilian spectrum authorizations and agreements with four mobile operators. Analysts remain divided, with a consensus “Hold” rating and an average price target of $80.67.
• Risks include intensifying competition from Amazon’s Globalstar investment, execution challenges in deploying its satellite constellation and a securities-fraud class action alleging misstatements related to capital, liquidity and dilution.

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS - Get Free Report) dropped 4.9% on Friday. The stock traded as low as $39.21 and last traded at $40.97. Approximately 13,644,217 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 16,642,203 shares. The stock had previously closed at $43.07.

AST SpaceMobile News Summary

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

• Positive Sentiment: FCC spectrum expansion improves the industry outlook. The Federal Communications Commission adopted a proposal to expand spectrum available for “supplemental coverage from space,” potentially allowing AST SpaceMobile and wireless carriers to use satellite links more broadly in areas outside conventional tower coverage. ASTS Stock Gains On FCC Plan to Expand Direct-To-Phone Spectrum
• Positive Sentiment: Brazil authorizations and operator agreements advance commercialization. AST SpaceMobile received spectrum authorizations from Brazil’s telecom regulator and signed agreements with four regional mobile operators. The deals could support future satellite-enabled broadband coverage in underserved Brazilian markets and validate the company’s international partnership strategy. AST SpaceMobile Secures Brazil Spectrum Authorizations and Four Operator Agreements
• Positive Sentiment: Bullish commentary points to potential growth beyond the recent selloff. An investment analysis cited AST’s funded satellite constellation, more than 60 carrier partners and possible large government contracts as reasons the shares may be undervalued relative to their long-term opportunity. These contracts remain potential rather than guaranteed catalysts. Prediction: ASTS Could Be Entering Its Biggest Growth Phase Yet
• Negative Sentiment: Multiple law firms are promoting a securities-fraud class action. The lawsuit covers investors who purchased ASTS securities from March 4, 2025, through July 15, 2026, with a November 13, 2026 lead-plaintiff deadline. Attorneys allege the company made material misstatements or omissions regarding capital and liquidity, including claims tied to roughly $3 billion of convertible-note offerings and dilution. The allegations have not been proven, but the litigation adds reputational and legal uncertainty. Pomerantz Class Action Announcement
• Negative Sentiment: Amazon’s approved Globalstar transaction raises competitive concerns. Amazon’s sizable investment and FCC-approved deal involving Globalstar could strengthen a rival satellite-connectivity ecosystem, increasing pressure on AST SpaceMobile to execute its constellation deployment and secure commercial contracts. Amazon’s FCC-Approved Globalstar Deal

Analyst Ratings Changes

A number of research analysts have issued reports on ASTS shares. Piper Sandler cut shares of AST SpaceMobile from an "overweight" rating to a "neutral" rating and decreased their price target for the stock from $98.00 to $54.00 in a report on Tuesday, October 13th. Scotiabank upgraded shares of AST SpaceMobile from a "sector perform" rating to a "sector outperform" rating and raised their price objective for the stock from $50.80 to $55.70 in a research report on Friday, October 23rd. Berenberg Bank started coverage on AST SpaceMobile in a research note on Wednesday, September 2nd. They set a "buy" rating and a $92.00 price target on the stock. UBS Group assumed coverage on shares of AST SpaceMobile in a research report on Wednesday, September 2nd. They issued a "buy" rating for the company. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of AST SpaceMobile from a "hold" rating to a "buy" rating and set a $93.00 target price on the stock in a research note on Monday, October 12th. Six investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, AST SpaceMobile presently has a consensus rating of "Hold" and an average target price of $80.67.

AST SpaceMobile Stock Down 4.9%

The firm has a market capitalization of $15.94 billion, a PE ratio of -19.14 and a beta of 2.72. The business's fifty day moving average price is $55.50 and its 200 day moving average price is $78.03. The company has a quick ratio of 12.90, a current ratio of 13.05 and a debt-to-equity ratio of 1.24.

AST SpaceMobile (NASDAQ:ASTS - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.77) EPS for the quarter, missing the consensus estimate of ($0.32) by ($0.45). The company had revenue of $31.52 million for the quarter, compared to analysts' expectations 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 last year, the company earned ($0.41) EPS. On average, equities research analysts forecast that AST SpaceMobile, Inc. will post -1.91 earnings per share for the current fiscal year.

Insider Transactions at AST SpaceMobile

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

Institutional Investors Weigh In On AST SpaceMobile

Hedge funds have recently modified their holdings of the stock. Integrity Advisory Solutions LLC raised its holdings in AST SpaceMobile by 5.7% during the third quarter. Integrity Advisory Solutions LLC now owns 8,587 shares of the company's stock worth $505,000 after purchasing an additional 460 shares in the last quarter. IPG Investment Advisors LLC boosted its stake in AST SpaceMobile by 21.2% during the 3rd quarter. IPG Investment Advisors LLC now owns 10,500 shares of the company's stock valued at $618,000 after purchasing an additional 1,840 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in AST SpaceMobile by 3.7% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 532,163 shares of the company's stock valued at $31,323,000 after purchasing an additional 18,971 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of AST SpaceMobile during the 3rd quarter valued at $45,926,000. Finally, ProShare Advisors LLC raised its stake in shares of AST SpaceMobile by 91.3% in the 3rd quarter. ProShare Advisors LLC now owns 7,626 shares of the company's stock worth $449,000 after buying an additional 3,640 shares in the last quarter. 60.95% of the stock is owned by institutional investors and hedge funds.

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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