AST SpaceMobile (NASDAQ:ASTS) Trading Down 3.8% – Here’s What Happened

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares dropped 3.8% on Thursday . The stock traded as low as $71.26 and last traded at $71.52. 9,363,415 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 18,013,055 shares. The stock had previously closed at $74.31.

AST SpaceMobile News Summary

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

• Positive Sentiment: AST SpaceMobile has reported a roughly $1.3 billion backlog, supporting the long-term revenue opportunity if the company can deploy satellites and begin scaling service quickly. Deployment progress has remained a key focus for investors, while bullish commentary argues that the company’s subscriber potential could support its valuation. AST SpaceMobile Has a $1.3B Backlog
• Positive Sentiment: An analyst upgrade and a separate Cantor Fitzgerald view that the shares could rise provided near-term support, reinforcing the bullish case around AST SpaceMobile’s direct-to-device satellite network. AST SpaceMobile Stock Price Up After Analyst Upgrade
• Neutral Sentiment: Analyst coverage remains mixed. One comparison concluded that IBM’s steadier earnings outlook and lower valuation currently make it the relatively safer technology investment, even though ASTS has delivered stronger stock gains over time. AST SpaceMobile vs. IBM
• Negative Sentiment: Second-quarter revenue of $31.5 million missed expectations of approximately $34.5 million, while the net loss widened to $230.9 million. The company also missed consensus EPS estimates as operating expenses surged, raising concerns about cash usage and the pace of commercialization. Does ASTS Stock Warrant Caution
• Negative Sentiment: Competition from SpaceX’s Starlink, potential deployment delays and what analysts describe as an inflated valuation are weighing on sentiment. Investors appear to be demanding evidence that AST SpaceMobile can build its network fast enough to convert its backlog into dependable revenue. ASTS and RKLB Chase the SpaceX Playbook

Analyst Upgrades and Downgrades

A number of research firms recently commented on ASTS. Piper Sandler decreased their price target on AST SpaceMobile from $100.00 to $98.00 and set an “overweight” rating for the company in a research note on Tuesday. Weiss Ratings restated a “sell (d-)” rating on shares of AST SpaceMobile in a research note on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft set a $93.00 target price on AST SpaceMobile in a report on Wednesday. B. Riley Financial upgraded AST SpaceMobile from a “neutral” rating to a “buy” rating and set a $85.00 target price for the company in a research report on Friday, July 17th. Finally, William Blair reiterated a “market perform” rating on shares of AST SpaceMobile in a report on Friday, May 29th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, AST SpaceMobile presently has an average rating of “Hold” and an average target price of $85.98.

AST SpaceMobile Trading Down 0.8%

The firm has a market cap of $27.62 billion, a P/E ratio of -33.17 and a beta of 2.75. The company has a debt-to-equity ratio of 1.24, a quick ratio of 18.37 and a current ratio of 13.05. The firm has a fifty day moving average of $72.45 and a 200-day moving average of $84.78.

AST SpaceMobile (NASDAQ:ASTS) last released its quarterly earnings data 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). AST SpaceMobile had a negative net margin of 536.66% and a negative return on equity of 22.88%. The company had revenue of $31.52 million for the quarter, compared to analyst estimates of $34.53 million. During the same quarter in the prior year, the firm earned ($0.41) EPS. Equities research analysts forecast that AST SpaceMobile, Inc. will post -1.95 earnings per share for the current year.

Insider Buying and Selling at AST SpaceMobile

In related news, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $96.37, for a total value of $3,854,800.00. Following the sale, the chief technology officer owned 34,750 shares of the company’s stock, valued at $3,348,857.50. This trade represents a 53.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew Martin Johnson sold 45,809 shares of AST SpaceMobile stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $93.81, for a total transaction of $4,297,342.29. Following the completion of the sale, the chief financial officer owned 503,619 shares in the company, valued at approximately $47,244,498.39. This represents a 8.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 90,809 shares of company stock valued at $8,603,392. Corporate insiders own 20.89% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Laurel Wealth Advisors LLC bought a new stake in shares of AST SpaceMobile during the fourth quarter valued at approximately $25,000. Cornerstone Planning Group LLC grew its holdings in AST SpaceMobile by 16,350.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock worth $27,000 after buying an additional 327 shares in the last quarter. Grove Bank & Trust bought a new position in AST SpaceMobile in the 2nd quarter worth approximately $27,000. Acumen Wealth Advisors LLC bought a new position in AST SpaceMobile in the 4th quarter worth approximately $29,000. Finally, Harvest Fund Management Co. Ltd acquired a new stake in AST SpaceMobile in the 3rd quarter valued at approximately $29,000. Institutional investors own 60.95% of the company’s stock.

About AST SpaceMobile

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.