AST SpaceMobile (NASDAQ:ASTS) Stock Falls 11.3% – Here’s Why

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares traded down 11.3% during mid-day trading on Monday. The stock traded as low as $36.08 and last traded at $36.33. 17,600,428 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 16,647,711 shares. The stock had previously closed at $40.97.

More AST SpaceMobile News

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

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Scotiabank raised shares of AST SpaceMobile from a “sector perform” rating to a “sector outperform” rating and increased their price objective for the company from $50.80 to $55.70 in a research report on Friday, October 23rd. William Blair reissued a “market perform” rating on shares of AST SpaceMobile in a research report on Monday, October 5th. Piper Sandler cut shares of AST SpaceMobile from an “overweight” rating to a “neutral” rating and cut their target price for the company from $98.00 to $54.00 in a research note on Tuesday, October 13th. Deutsche Bank Aktiengesellschaft raised AST SpaceMobile from a “hold” rating to a “buy” rating and set a $93.00 target price for the company in a research report on Monday, October 12th. Finally, Berenberg Bank assumed coverage on shares of AST SpaceMobile in a report on Wednesday, September 2nd. They issued a “buy” rating and a $92.00 price target on the stock. Six analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $80.67.

AST SpaceMobile Stock Performance

The stock has a market capitalization of $14.14 billion, a price-to-earnings ratio of -16.98 and a beta of 2.88. 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 firm has a 50-day moving average of $55.02 and a 200-day moving average of $77.74.

AST SpaceMobile (NASDAQ:ASTS) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.77) EPS for the quarter, missing analysts’ consensus estimates of ($0.32) by ($0.45). The firm had revenue of $31.52 million for the quarter, compared to analyst estimates 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 period in the prior year, the firm posted ($0.41) EPS. As a group, sell-side analysts predict that AST SpaceMobile, Inc. will post -1.91 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Shanti B. Gupta sold 12,000 shares of the stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $58.89, for a total value of $706,680.00. Following the sale, the chief operating officer owned 462,980 shares in the company, valued at $27,264,892.20. This represents a 2.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction 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 completion of the sale, the chief technology officer owned 34,750 shares in the company, valued at $2,047,817.50. The trade was a 53.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.89% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AST SpaceMobile

Hedge funds have recently added to or reduced their stakes in the business. Tidal Investments LLC raised its stake in shares of AST SpaceMobile by 9,876.8% during the 2nd quarter. Tidal Investments LLC now owns 1,049,061 shares of the company’s stock valued at $93,220,000 after buying an additional 1,038,546 shares during the last quarter. Tema ETFs LLC boosted its stake in shares of AST SpaceMobile by 109,486.8% in the second quarter. Tema ETFs LLC now owns 1,003,815 shares of the company’s stock worth $89,199,000 after buying an additional 1,002,899 shares during the last quarter. Bank of America Corp DE grew its holdings in AST SpaceMobile by 140.3% during the first quarter. Bank of America Corp DE now owns 1,644,246 shares of the company’s stock worth $136,259,000 after acquiring an additional 960,045 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new stake in AST SpaceMobile during the third quarter worth about $45,926,000. Finally, Bank of New York Mellon Corp acquired a new stake in AST SpaceMobile during the second quarter worth about $67,907,000. 60.95% of the stock is owned by hedge funds and other institutional investors.

About AST SpaceMobile

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.