AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 3.9% – Here’s What Happened

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s stock price fell 3.9% during mid-day trading on Wednesday. The company traded as low as $58.88 and last traded at $60.65. Approximately 10,735,660 shares were traded during mid-day trading, a decline of 35% from the average session volume of 16,454,652 shares. The stock had previously closed at $63.12.

Trending Headlines about AST SpaceMobile

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

• Positive Sentiment: The U.S. and Japan included AST SpaceMobile’s planned partnership with Rakuten in a technology-cooperation statement, strengthening the strategic case for ASTS’s satellite-to-smartphone service and its potential access to the Japanese market. U.S.-Japan technology deal
• Positive Sentiment: AST SpaceMobile and TELUS completed a direct satellite-to-smartphone integration test in Canada using ordinary mobile devices. The demonstration supports the company’s claims that its network can extend coverage into remote areas without specialized user equipment. AST SpaceMobile and TELUS Canada test
• Positive Sentiment: Some analysts remain bullish, arguing that ASTS’s recent decline has created substantial upside if the company executes its satellite deployment and monetizes carrier partnerships. One commentary suggested potential returns of roughly 70%, though this is an analyst opinion rather than a company forecast. Bullish AST SpaceMobile analysis

Wall Street Analyst Weigh In

ASTS has been the subject of several recent analyst reports. William Blair reaffirmed a “market perform” rating on shares of AST SpaceMobile in a report on Monday. UBS Group assumed coverage on AST SpaceMobile in a report on Wednesday, September 2nd. They set a “buy” rating for the company. Royal Bank Of Canada lowered AST SpaceMobile to a “sector perform” rating in a research note on Friday, October 2nd. Deutsche Bank Aktiengesellschaft set a $93.00 target price on AST SpaceMobile in a research report on Wednesday, August 12th. Finally, Piper Sandler dropped their target price on shares of AST SpaceMobile from $100.00 to $98.00 and set an “overweight” rating for the company in a report on Tuesday, August 11th. Five investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $84.58.

AST SpaceMobile Price Performance

The firm has a market cap of $23.60 billion, a P/E ratio of -28.34 and a beta of 2.72. The company has a current ratio of 13.05, a quick ratio of 12.90 and a debt-to-equity ratio of 1.24. The business has a 50-day moving average of $62.95 and a two-hundred day moving average of $76.31.

AST SpaceMobile (NASDAQ:ASTS) last posted its 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 firm had revenue of $31.52 million during the quarter, compared to the consensus estimate of $34.53 million. AST SpaceMobile had a negative net margin of 536.66% and a negative return on equity of 22.88%. During the same quarter in the prior year, the business posted ($0.41) earnings per share. On average, sell-side analysts anticipate that AST SpaceMobile, Inc. will post -1.95 earnings per share for the current fiscal year.

Insider Buying and Selling

In other AST SpaceMobile news, Director Adriana Cisneros bought 10,822 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were acquired at an average cost of $57.22 per share, for a total transaction of $619,234.84. Following the transaction, the director directly owned 797,023 shares in the company, valued at approximately $45,605,656.06. This represents a 1.38% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the business’s stock in a transaction that occurred on 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 sale, the chief technology officer directly owned 34,750 shares in the company, valued at $2,047,817.50. The trade was a 53.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.89% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AST SpaceMobile

A number of institutional investors have recently made changes to their positions in ASTS. Focus Partners Wealth lifted its position in shares of AST SpaceMobile by 8,016.7% during the 4th quarter. Focus Partners Wealth now owns 1,269,609 shares of the company’s stock valued at $92,000,000 after acquiring an additional 1,253,967 shares during the period. ABN Amro Investment Solutions bought a new stake in AST SpaceMobile in the first quarter valued at $996,000. KBC Group NV raised its holdings in shares of AST SpaceMobile by 259.5% during the first quarter. KBC Group NV now owns 23,438 shares of the company’s stock valued at $1,942,000 after purchasing an additional 16,918 shares during the period. Bank of Nova Scotia bought a new position in shares of AST SpaceMobile during the 1st quarter worth about $1,329,000. Finally, Swedbank AB acquired a new stake in shares of AST SpaceMobile in the 1st quarter valued at about $3,399,000. Institutional investors own 60.95% of the company’s stock.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc develops a space-based cellular broadband network designed to connect standard mobile phones directly to satellites without requiring specialized satellite phones or equipment. The company’s objective is to extend mobile connectivity to areas that lack reliable terrestrial cellular coverage, including remote and underserved regions.

Its system is built around the planned SpaceMobile satellite constellation, including BlueBird satellites equipped with large communications arrays.