AST SpaceMobile (NASDAQ:ASTS) Trading Down 4% – Here’s Why

by · The Cerbat Gem

AST SpaceMobile, Inc. (NASDAQ:ASTS – Get Free Report)’s share price was down 4% during trading on Thursday . The stock traded as low as $59.87 and last traded at $59.91. Approximately 8,267,722 shares were traded during mid-day trading, a decline of 52% from the average session volume of 17,085,412 shares. The stock had previously closed at $62.42.

AST SpaceMobile News Summary

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

  • Positive Sentiment: A new U.S. task force targeting 10,000 annual space operations by 2035 could benefit ASTS through faster regulatory approvals, additional spaceports, priority launch corridors and improved airspace integration. New Trump Task Force Targets 10,000 Annual Space Operations By 2035
  • Positive Sentiment: ASTS generated approximately $31.5 million of second-quarter revenue, sharply above $1.2 million a year earlier, while its roughly $1.3 billion contracted backlog includes commercial and U.S. government business. This supports the longer-term growth case, although the forecast that revenue could triple again by 2028 remains speculative. Prediction: AST SpaceMobile Triples Its Revenue Again by 2028
  • Positive Sentiment: AST is seeking additional satellite testing in the United States, including proposed BlueBird radiolocation tests near three gateway sites. Progress on testing could support network deployment and regulatory approvals. ASTS Stock Hits Nearly 3-Week High
  • Neutral Sentiment: Reported short interest was zero shares as of September 10, unchanged from the prior period, implying no measurable short-selling signal. The figures appear anomalous, with the reported percentage change listed as “NaN.”
  • Neutral Sentiment: Analyst opinions remain divided, limiting the usefulness of consensus sentiment as a clear catalyst. Analysts Have Conflicting Sentiments on AST SpaceMobile
  • Negative Sentiment: Investors remain concerned about satellite deployment timing, regulatory hurdles and future capital needs despite ASTS’s strong liquidity, partnerships and broadband progress. Those concerns have contributed to a substantial six-month decline. ASTS Stock Declines 24.4% in Six Months
  • Negative Sentiment: The latest earnings update missed analyst expectations on both adjusted loss and revenue, while the company continues to operate with deeply negative margins. This has weighed on expectations since the report. Why Is AST SpaceMobile Down Since Last Earnings Report?
  • Negative Sentiment: Weakness in other space stocks, including selling tied to an insider share unlock at SpaceX, has added broader sector pressure to ASTS. Space Sector Stocks Under Pressure

Wall Street Analyst Weigh In

Several brokerages have issued reports on ASTS. Piper Sandler cut their target price on shares of AST SpaceMobile from $100.00 to $98.00 and set an “overweight” rating on the stock in a research note on Tuesday, August 11th. B. Riley Financial upgraded AST SpaceMobile from a “neutral” rating to a “buy” rating and set a $85.00 target price on the stock in a report on Friday, July 17th. Deutsche Bank Aktiengesellschaft set a $93.00 target price on AST SpaceMobile in a report on Wednesday, August 12th. Scotiabank raised AST SpaceMobile from a “sector underperform” rating to a “sector perform” rating and set a $50.80 target price for the company in a research report on Wednesday, July 29th. Finally, New Street Research set a $106.00 target price on shares of AST SpaceMobile in a research note on Friday, May 29th. Six analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $86.58.

View Our Latest Analysis on ASTS

AST SpaceMobile Price 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 has a market cap of $23.32 billion, a P/E ratio of -28.00 and a beta of 2.74. The company’s 50-day moving average price is $65.59 and its 200-day moving average price is $80.09.

AST SpaceMobile (NASDAQ:ASTS – Get Free Report) last announced 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 business 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 quarter in the previous year, the company posted ($0.41) EPS. As a group, sell-side analysts predict that AST SpaceMobile, Inc. will post -1.95 earnings per share for the current fiscal year.

Insider Activity at AST SpaceMobile

In other news, Director Adriana Cisneros bought 10,822 shares of the stock in a transaction dated Monday, August 31st. The shares were bought at an average price of $57.22 per share, for a total transaction of $619,234.84. Following the completion of the purchase, the director owned 797,023 shares in the company, valued at approximately $45,605,656.06. This trade represents a 1.38% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 20.89% of the company’s stock.

Institutional Trading of AST SpaceMobile

Several large investors have recently made changes to their positions in ASTS. California State Teachers Retirement System grew its stake in shares of AST SpaceMobile by 11,947.9% during the second quarter. California State Teachers Retirement System now owns 31,526,551 shares of the company’s stock worth $2,801,449,000 after buying an additional 31,264,875 shares during the last quarter. Vodafone Ventures Ltd acquired a new position in shares of AST SpaceMobile during the fourth quarter valued at about $397,413,000. Morgan Stanley lifted its holdings in shares of AST SpaceMobile by 44.0% in the 4th quarter. Morgan Stanley now owns 4,661,551 shares of the company’s stock worth $338,569,000 after purchasing an additional 1,425,199 shares in the last quarter. Geode Capital Management LLC increased its holdings in AST SpaceMobile by 9.8% during the 4th quarter. Geode Capital Management LLC now owns 4,522,549 shares of the company’s stock worth $328,749,000 after purchasing an additional 402,505 shares in the last quarter. Finally, State Street Corp lifted its position in shares of AST SpaceMobile by 9.7% during the fourth quarter. State Street Corp now owns 3,951,685 shares of the company’s stock valued at $287,011,000 after purchasing an additional 350,690 shares in the last quarter. Institutional investors and hedge funds own 60.95% of the company’s stock.

About AST SpaceMobile

(Get Free Report)

AST SpaceMobile, Inc develops a space-based cellular broadband network designed to connect standard, unmodified mobile phones directly to satellites. Its planned service is intended to extend mobile connectivity beyond the coverage of traditional terrestrial wireless networks, including in rural, remote and underserved areas.

The company’s primary technology platform consists of large, low-Earth-orbit satellites known as BlueBirds. AST SpaceMobile is developing these satellites to provide voice, messaging and broadband data services through partnerships with mobile network operators, using existing cellular devices and spectrum where permitted.

Founded in 2017 and headquartered in Midland, Texas, AST SpaceMobile was established by Abel Avellan, who serves as its chairman and chief executive officer.

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