AST SpaceMobile (NASDAQ:ASTS) Trading Up 7.7% – Here’s Why

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares rose 7.7% on Monday . The company traded as high as $65.12 and last traded at $63.52. Approximately 11,644,456 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 18,244,295 shares. The stock had previously closed at $58.98.

More AST SpaceMobile News

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

• Positive Sentiment: AST SpaceMobile successfully launched its BlueBird 11, 12 and 13 satellites, expanding the company’s planned space-based cellular network. CEO Abel Avellan said the mission demonstrates steady progress toward a scalable service, with beta services planned for later this year. AST SpaceMobile Announces Successful Orbital Launch of BlueBirds 11, 12, and 13
• Positive Sentiment: Investor and retail interest improved ahead of the launch. Short interest reportedly declined to approximately 19.9% of the public float from 21.7% the prior week, potentially reducing some short-selling pressure. ASTS Short Interest Drops Below 20% Ahead Of BlueBird Launch
• Positive Sentiment: A Meta executive’s comments about a WhatsApp satellite workshop increased speculation that AST SpaceMobile could support future satellite-based messaging applications. AST SpaceMobile gains as Meta executive highlights WhatsApp satellite workshop
• Neutral Sentiment: Despite the launch, investors are reassessing whether ASTS’s large multi-year advance and premium valuation already price in ambitious growth expectations. Does AST SpaceMobile Trade At A Premium After Its Satellite Launch?
• Negative Sentiment: Shares appear to be digesting the previous day’s rally while the market evaluates competition, execution risks and the company’s upcoming earnings report. SpaceX-related trading has also added volatility to the space sector as investors react to its communications and AI ambitions. Is AST SpaceMobile Stock a Smart Buy Before Q2 Earnings Release?
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of AST SpaceMobile investors, creating an additional headline risk. Pomerantz Law Firm Investigates Claims on Behalf of AST SpaceMobile Investors

Analyst Ratings Changes

ASTS has been the subject of a number of research analyst reports. Scotiabank raised shares of AST SpaceMobile from a “sector underperform” rating to a “sector perform” rating and set a $50.80 price objective for the company in a research report on Wednesday, July 29th. UBS Group dropped their price objective on shares of AST SpaceMobile from $85.00 to $80.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 12th. Roth Capital restated a “buy” rating and set a $108.00 target price on shares of AST SpaceMobile in a research note on Tuesday, May 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of AST SpaceMobile in a report on Wednesday, June 24th. Finally, Barclays upped their price target on shares of AST SpaceMobile from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, AST SpaceMobile has a consensus rating of “Hold” and an average price target of $87.60.

AST SpaceMobile Stock Performance

The firm has a market capitalization of $26.76 billion, a price-to-earnings ratio of -38.51 and a beta of 2.75. The company has a fifty day moving average of $79.33 and a two-hundred day moving average of $86.88. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47.

AST SpaceMobile (NASDAQ:ASTS) last released its quarterly earnings results on Monday, May 11th. The company reported ($0.66) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.23) by ($0.43). AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. The firm had revenue of $14.73 million during the quarter, compared to the consensus estimate of $39.01 million. During the same quarter last year, the firm earned ($0.20) earnings per share. The business’s revenue for the quarter was up 1952.2% compared to the same quarter last year. As a group, equities research analysts predict that AST SpaceMobile, Inc. will post -1.38 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Julio A. Torres sold 15,000 shares of the business’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total value of $1,145,100.00. Following the completion of the sale, the director owned 43,239 shares of the company’s stock, valued at approximately $3,300,865.26. The trade was a 25.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Andrew Martin Johnson sold 45,809 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $93.81, for a total transaction of $4,297,342.29. Following the transaction, the chief financial officer owned 503,619 shares in the company, valued at approximately $47,244,498.39. The trade was a 8.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 105,809 shares of company stock valued at $9,748,492. 20.89% of the stock is owned by company insiders.

Institutional Trading of AST SpaceMobile

Several institutional investors and hedge funds have recently modified their holdings of ASTS. Laurel Wealth Advisors LLC bought a new stake in shares of AST SpaceMobile during the 4th quarter valued at approximately $25,000. Cornerstone Planning Group LLC grew its stake in shares of AST SpaceMobile by 16,350.0% during the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock worth $27,000 after buying an additional 327 shares during the last quarter. Grove Bank & Trust acquired a new position in shares of AST SpaceMobile during the second quarter worth $27,000. Acumen Wealth Advisors LLC acquired a new position in shares of AST SpaceMobile during the fourth quarter worth $29,000. Finally, Harvest Fund Management Co. Ltd bought a new position in shares of AST SpaceMobile in the 3rd quarter valued at $29,000. 60.95% of the stock is currently owned by institutional investors.

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.