AST SpaceMobile (NASDAQ:ASTS) Stock Price Down 3.1% – What’s Next?

AST SpaceMobile, Inc. (NASDAQ:ASTS) dropped 3.1% on Wednesday . The company traded as low as $83.40 and last traded at $86.10. 17,759,337 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 18,813,098 shares. The stock had previously closed at $88.86.

Key AST SpaceMobile News

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

• Positive Sentiment: Japan is reportedly preparing about 150 billion yen ($926 million) in subsidies for a Rakuten-led consortium working with AST SpaceMobile, raising hopes for a large direct-to-mobile satellite network project in Japan. ASTS Stock Eyes Comeback After 4-Week Slide: Japan Filing Confirms Rakuten-Led Pick For Nearly $1B Push By SpaceX Rival
• Positive Sentiment: Multiple reports said AST SpaceMobile and Rakuten are in talks to form a joint venture for a satellite communications network in Japan, with government support aimed at reducing reliance on foreign providers like Starlink. Rakuten satellite project to receive up to $912 million in Japan govt grant
• Positive Sentiment: ASTS also benefited from broader enthusiasm around the space sector after Rocket Lab’s deal activity lifted investor appetite for satellite and launch companies. Rocket Lab Stock Surges as Iridium Deal Feeds Market Appetite for Space
• Neutral Sentiment: Recent commentary highlighted that AST SpaceMobile has been attracting investor attention and outpacing the market, but this was mostly a reaction to the Japan partnership news rather than a separate fundamental update. Why AST SpaceMobile, Inc. (ASTS) Outpaced the Stock Market Today
• Negative Sentiment: Some reports note ASTS had been on a multi-week slide before the latest rebound, so investors may still be cautious about whether the rally can hold. ASTS Stock Eyes Comeback After 4-Week Slide: Japan Filing Confirms Rakuten-Led Pick For Nearly $1B Push By SpaceX Rival

Analysts Set New Price Targets

ASTS has been the topic of several recent research reports. New Street Research set a $106.00 price objective on shares of AST SpaceMobile in a research note on Friday, May 29th. Deutsche Bank Aktiengesellschaft cut shares of AST SpaceMobile from a “buy” rating to a “hold” rating and reduced their target price for the stock from $117.00 to $106.00 in a report on Friday, May 29th. Zacks Research upgraded shares of AST SpaceMobile from a “strong sell” rating to a “hold” rating in a research report on Wednesday, March 4th. William Blair reaffirmed a “market perform” rating on shares of AST SpaceMobile in a report on Friday, May 29th. Finally, B. Riley Financial increased their price objective on AST SpaceMobile from $75.00 to $85.00 and gave the company a “neutral” rating in a research report on Tuesday, May 12th. One equities research analyst has rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $85.09.

AST SpaceMobile Trading Down 3.1%

The firm has a market cap of $33.42 billion, a price-to-earnings ratio of -48.37 and a beta of 2.70. The company has a quick ratio of 18.37, a current ratio of 18.47 and a debt-to-equity ratio of 1.11. The company has a 50-day moving average price of $87.16 and a 200 day moving average price of $89.40.

AST SpaceMobile (NASDAQ:ASTS) last issued its earnings results on Monday, May 11th. The company reported ($0.66) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.43). The business had revenue of $14.73 million during the quarter, compared to analyst estimates of $39.01 million. AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. AST SpaceMobile’s revenue for the quarter was up 1952.2% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.20) EPS. As a group, research analysts anticipate that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current fiscal year.

Insider Transactions at AST SpaceMobile

In other AST SpaceMobile news, major shareholder Hiroshi Mikitani sold 1,350,000 shares of the company’s stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $86.22, for a total value of $116,397,000.00. Following the transaction, the insider directly owned 27,980,155 shares of the company’s stock, valued at $2,412,448,964.10. This represents a 4.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $96.37, for a total value of $3,854,800.00. Following the sale, the chief technology officer directly owned 34,750 shares of the company’s stock, valued at $3,348,857.50. This trade represents a 53.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,145,809 shares of company stock valued at $280,645,292 in the last three months. 20.89% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AST SpaceMobile

A number of hedge funds have recently added to or reduced their stakes in the company. Vodafone Ventures Ltd bought a new position in AST SpaceMobile during the fourth quarter valued at approximately $397,413,000. Norges Bank bought a new position in shares of AST SpaceMobile during the 4th quarter valued at $198,270,000. Clear Street Group Inc. bought a new position in shares of AST SpaceMobile during the 3rd quarter valued at $90,129,000. Vanguard Group Inc. lifted its stake in shares of AST SpaceMobile by 7.9% in the 4th quarter. Vanguard Group Inc. now owns 21,488,180 shares of the company’s stock valued at $1,560,687,000 after purchasing an additional 1,568,292 shares during the last quarter. Finally, Morgan Stanley increased its position in AST SpaceMobile by 44.0% during the fourth quarter. Morgan Stanley now owns 4,661,551 shares of the company’s stock worth $338,569,000 after buying an additional 1,425,199 shares during the last quarter. Institutional investors and hedge funds 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.