AST SpaceMobile (NASDAQ:ASTS) Shares Down 11.3% – What’s Next?

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

AST SpaceMobile News Summary

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

• Positive Sentiment: AST SpaceMobile and AT&T completed a live call handoff between a terrestrial cellular network and AST’s satellite service, an important step toward continuous coverage on standard phones. Can ASTS’ Handoff Test With AT&T Strengthen Its Growth Prospects?
• Positive Sentiment: Chile granted AST’s local unit a 30-year concession to provide nationwide mobile satellite services, adding regulatory support for its international service plans. Chile Clears AST SpaceMobile for Nationwide Satellite Service
• Neutral Sentiment: ASTS is approaching its Q3 report, expected Nov. 9. Satellite launches, partnerships and government contracts are potential growth drivers, while high costs and execution risks remain central investor questions. Should You Buy, Sell or Hold ASTS Stock Ahead of Q3 Earnings?
• Negative Sentiment: Reports say the company will not reach its target of 45 satellites in orbit this year. Delays could push out service expansion and revenue, particularly concerning given AST’s substantial cash needs. AST SpaceMobile Just Admitted It Won’t Hit 45 Satellites This Year
• Negative Sentiment: Several law firms publicized a securities class action alleging, among other claims, that company disclosures overstated capital and liquidity. These are allegations, not established findings, but the litigation adds uncertainty. ASTS Shareholder Alert
• Negative Sentiment: One valuation-focused article questions whether the stock’s valuation is justified by its assets, while commentary also flags SpaceX’s potential wireless push as a competitive risk. AST SpaceMobile Stock May Be Fully Valued

Analysts Set New Price Targets

ASTS has been the topic of a number of research reports. B. Riley Financial lowered shares of AST SpaceMobile from a “buy” rating to a “neutral” rating and decreased their price target for the company from $85.00 to $65.00 in a research note on Friday, October 2nd. Berenberg Bank began coverage on shares of AST SpaceMobile in a research report on Wednesday, September 2nd. They set a “buy” rating and a $92.00 price objective for the company. Cantor Fitzgerald boosted their price objective on AST SpaceMobile from $80.00 to $90.00 and gave the stock an “overweight” rating in a report on Tuesday, August 11th. Royal Bank Of Canada cut AST SpaceMobile to a “sector perform” rating in a report on Friday, October 2nd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of AST SpaceMobile in a research report on Monday, September 21st. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $80.67.

AST SpaceMobile Stock Performance

The company has a debt-to-equity ratio of 1.24, a current ratio of 13.05 and a quick ratio of 12.90. The company’s 50 day moving average is $53.87 and its 200 day moving average is $77.17.

AST SpaceMobile (NASDAQ:ASTS) last released 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). AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%. The business had revenue of $31.52 million for the quarter, compared to the consensus estimate of $34.53 million. During the same period in the prior year, the business posted ($0.41) earnings per share. On average, analysts predict that AST SpaceMobile, Inc. will post -1.91 EPS for the current year.

Insiders Place Their Bets

In other AST SpaceMobile news, Director Adriana Cisneros bought 10,822 shares of the firm’s stock in a transaction on Monday, August 31st. The shares were purchased at an average price 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 trade represents a 1.38% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Huiwen Yao sold 40,000 shares of the firm’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 transaction, the chief technology officer directly owned 34,750 shares in the company, valued at $2,047,817.50. This represents a 53.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 20.89% of the company’s stock.

Institutional Investors Weigh In On AST SpaceMobile

A number of large investors have recently added to or reduced their stakes in ASTS. Bank of America Corp DE raised its holdings in AST SpaceMobile by 140.3% in the 1st quarter. Bank of America Corp DE now owns 1,644,246 shares of the company’s stock valued at $136,259,000 after acquiring an additional 960,045 shares in the last quarter. First Trust Advisors LP lifted its position in shares of AST SpaceMobile by 14.3% during the 1st quarter. First Trust Advisors LP now owns 1,316,852 shares of the company’s stock valued at $109,128,000 after acquiring an additional 164,303 shares during the period. Tidal Investments LLC grew its holdings 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 worth $93,220,000 after purchasing an additional 1,038,546 shares in the last quarter. Tema ETFs LLC grew its holdings in shares of AST SpaceMobile by 109,486.8% during the 2nd quarter. Tema ETFs LLC now owns 1,003,815 shares of the company’s stock worth $89,199,000 after purchasing an additional 1,002,899 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its holdings in shares of AST SpaceMobile by 21.5% during the 1st quarter. Bank of New York Mellon Corp now owns 837,559 shares of the company’s stock worth $69,409,000 after purchasing an additional 148,464 shares in the last quarter. Institutional investors and hedge funds own 60.95% of the company’s stock.

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.