AST SpaceMobile (NASDAQ:ASTS) Trading Down 5.6% – Should You Sell?

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s share price traded down 5.6% during mid-day trading on Thursday . The company traded as low as $77.12 and last traded at $80.66. 31,214,718 shares traded hands during trading, an increase of 69% from the average session volume of 18,454,025 shares. The stock had previously closed at $85.43.

AST SpaceMobile News Roundup

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

• Positive Sentiment: AST SpaceMobile successfully launched BlueBird 8, 9, and 10, marking an important step toward large-scale direct-to-phone cellular service and validating its satellite deployment roadmap.
• Positive Sentiment: Analysts say ASTS could benefit from substantial operating leverage as commercial operations begin around FY27, with some seeing the stock as undervalued relative to its long-term growth potential. AST SpaceMobile: From Bear To Bull – FY27 Commercial Commencement Unlocks Substantial Operating Leverage
• Neutral Sentiment: Some commentary highlighted that the launch and rising interest in space-related investing are also keeping ASTS in the market’s spotlight, alongside broader enthusiasm for space ETFs and SpaceX-related themes.
• Negative Sentiment: Despite the recent momentum, ASTS remains a high-risk, unprofitable growth stock with meaningful execution risk, heavy capital needs, and rising competition in satellite communications.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. UBS Group cut their price target on shares of AST SpaceMobile from $85.00 to $80.00 and set a “neutral” rating for the company in a report on Tuesday, May 12th. Weiss Ratings restated a “sell (d-)” rating on shares of AST SpaceMobile in a research report on Friday, March 27th. William Blair restated a “market perform” rating on shares of AST SpaceMobile in a research note on Friday, May 29th. Barclays raised their target price on AST SpaceMobile from $60.00 to $65.00 and gave the company an “underweight” rating in a report on Thursday, April 9th. Finally, Zacks Research upgraded AST SpaceMobile from a “strong sell” rating to a “hold” rating in a research note on Wednesday, March 4th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $81.33.

AST SpaceMobile Price Performance

The business’s 50-day simple moving average is $89.92 and its two-hundred day simple moving average is $88.78. The stock has a market cap of $31.31 billion, a price-to-earnings ratio of -45.31 and a beta of 2.70. The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37.

AST SpaceMobile (NASDAQ:ASTS) last announced its quarterly earnings results on Monday, May 11th. The company reported ($0.66) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.23) by ($0.43). AST SpaceMobile had a negative return on equity of 24.87% and a negative net margin of 573.67%.The company had revenue of $14.73 million for the quarter, compared to analyst estimates of $39.01 million. During the same quarter last year, the company posted ($0.20) earnings per share. The firm’s quarterly revenue was up 1952.2% on a year-over-year basis. Research analysts expect that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current year.

Insider Transactions at AST SpaceMobile

In other AST SpaceMobile news, Director Julio A. Torres sold 15,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total transaction of $1,145,100.00. Following the sale, the director directly owned 43,239 shares of the company’s stock, valued at $3,300,865.26. The trade was a 25.76% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 14th. The shares were 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 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 SEC filing for this sale provides additional information. Insiders sold 3,185,809 shares of company stock worth $284,200,492 in the last 90 days. 20.89% of the stock is currently owned by company insiders.

Institutional Trading of AST SpaceMobile

Institutional investors and hedge funds have recently bought and sold shares of the stock. Crewe Advisors LLC acquired a new position in AST SpaceMobile during the 4th quarter worth about $25,000. Laurel Wealth Advisors LLC acquired a new stake in shares of AST SpaceMobile in the fourth quarter valued at about $25,000. Cornerstone Planning Group LLC increased its stake in shares of AST SpaceMobile by 16,350.0% in the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock valued at $27,000 after buying an additional 327 shares during the period. Byrne Asset Management LLC bought a new position in shares of AST SpaceMobile during the fourth quarter worth about $29,000. Finally, Acumen Wealth Advisors LLC acquired a new position in shares of AST SpaceMobile in the fourth quarter worth approximately $29,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

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.