AST SpaceMobile (NASDAQ:ASTS) Shares Down 8.7% on Disappointing Earnings

AST SpaceMobile, Inc. (NASDAQ:ASTS) fell 8.7% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $31.96 and last traded at $33.69. Approximately 25,533,446 shares changed hands during trading, an increase of 52% from the average daily volume of 16,847,510 shares. The stock had previously closed at $36.89.

The company reported ($0.44) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.03). The firm had revenue of $42.32 million during the quarter, compared to the consensus estimate of $45.73 million. AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%. The firm’s revenue was up 187.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.45) EPS.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: Japan venture adds a potential growth market: AST and Rakuten plan to build a direct-to-smartphone satellite network in Japan, with up to $1 billion in expected Japanese government support. Article
• Positive Sentiment: Expansion targets remain ambitious: AST is targeting 45 satellites in orbit by mid-2027, a production rate of six satellites per month by December, and initial intermittent service before year-end. It also reaffirmed 2026 revenue guidance of $150 million to $200 million. Article
• Neutral Sentiment: Revenue is growing quickly, but remains below expectations: Third-quarter revenue rose about 188% year over year to $42.3 million, though it missed analyst estimates. Article
• Negative Sentiment: Quarterly results disappointed: AST reported a loss of $0.44 per share, wider than the $0.41 consensus loss, while revenue also fell short. Higher costs tied to satellite expansion are pressuring results. Article
• Negative Sentiment: Analysts cut targets amid launch concerns: UBS lowered its target to $43 from $78 and BofA to $45 from $80, citing a slower launch cadence and later commercial availability. Investors are also concerned that AST’s rocket strategy could increase cash needs and that launch capacity is outside its control. Article
• Negative Sentiment: Legal overhang: Law firms are publicizing a securities class action and a November 13 lead-plaintiff deadline. The allegations are not findings of wrongdoing, but add reputational uncertainty. Article

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. William Blair reissued a “market perform” rating on shares of AST SpaceMobile in a research report on Monday, October 5th. Royal Bank Of Canada cut shares of AST SpaceMobile to a “sector perform” rating in a report on Friday, October 2nd. B. Riley Financial reduced their target price on shares of AST SpaceMobile from $65.00 to $48.00 and set a “neutral” rating on the stock in a research report on Tuesday. Citigroup reiterated a “positive” rating on shares of AST SpaceMobile in a research note on Tuesday. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of AST SpaceMobile in a research report on Monday. Six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $75.47.

Insider Activity at AST SpaceMobile

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

Hedge Funds Weigh In On AST SpaceMobile

Hedge funds have recently bought and sold shares of the company. Compass Financial Management LLC purchased a new stake in shares of AST SpaceMobile in the 2nd quarter worth $26,000. Cornerstone Planning Group LLC raised 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 purchasing an additional 327 shares during the period. Grove Bank & Trust purchased a new position in AST SpaceMobile during the second quarter valued at $27,000. Continuum Advisory LLC purchased a new position in AST SpaceMobile during the second quarter valued at $28,000. Finally, CX Institutional lifted its position in AST SpaceMobile by 1,256.1% during the third quarter. CX Institutional now owns 556 shares of the company’s stock valued at $33,000 after purchasing an additional 515 shares in the last quarter. Institutional investors own 60.95% of the company’s stock.

AST SpaceMobile Stock Down 8.7%

The company has a fifty day simple moving average of $51.74 and a 200-day simple moving average of $75.68. The company has a quick ratio of 12.90, a current ratio of 13.05 and a debt-to-equity ratio of 1.24. The firm has a market cap of $13.11 billion, a P/E ratio of -15.74 and a beta of 2.88.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc. develops a space-based cellular broadband network designed to connect directly with standard mobile phones, without requiring users to purchase specialized satellite devices. Its planned services include voice calls, text messaging and mobile broadband, delivered through partnerships with mobile network operators and integrated with their existing networks. The company is developing and deploying its BlueBird satellite system to provide coverage in areas where terrestrial cellular networks are unavailable or limited.