AST SpaceMobile (NASDAQ:ASTS) Stock Price Up 6.8% – Here’s Why

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s share price shot up 6.8% during mid-day trading on Friday . The stock traded as high as $71.99 and last traded at $71.94. Approximately 13,810,393 shares changed hands during trading, a decline of 24% from the average daily volume of 18,146,299 shares. The stock had previously closed at $67.36.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile launched three additional BlueBird satellites, reportedly doubling download speeds for direct-to-device partners. The launch strengthens the company’s network capacity ahead of its Aug. 10 earnings call and supports its goal of deploying a larger constellation by 2027. AST SpaceMobile’s Latest BlueBird Launch Raises the Stakes Ahead of Q2 Earnings
• Positive Sentiment: The company received approval to launch direct-to-cell services in Japan with Rakuten Mobile. It also announced testing and network-integration work with Vodafone, Deutsche Telekom, Orange and other operators across Europe, expanding the potential addressable market for its satellite broadband service. AST SpaceMobile Secures Japan Direct To Cell Approval
• Positive Sentiment: Strength across space-related stocks, including a rally in SpaceX despite its lockup expiration, appears to be providing a favorable sector backdrop for ASTS. SpaceX Climbs as Lockup Expiration Fails to Trigger a Selloff
• Neutral Sentiment: Investors are awaiting second-quarter results on Aug. 10. The report will be important for assessing commercial revenue growth, cash use, deployment timing and whether recent network developments are translating into financial progress. Heavily Shorted Satellite Stock Gearing Up for Earnings
• Negative Sentiment: Pomerantz LLP is investigating potential claims on behalf of AST SpaceMobile investors. The announcement creates a legal and headline risk, although it does not establish wrongdoing. Pomerantz Investor Alert

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. UBS Group reduced their price target on shares of AST SpaceMobile from $85.00 to $80.00 and set a “neutral” rating for the company in a report on Tuesday, May 12th. Piper Sandler initiated coverage on shares of AST SpaceMobile in a report on Wednesday, July 15th. They set an “overweight” rating and a $100.00 price objective on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of AST SpaceMobile in a report on Wednesday, June 24th. B. Riley Financial raised shares of AST SpaceMobile from a “neutral” rating to a “buy” rating and set a $85.00 price objective for the company in a research note on Friday, July 17th. Finally, Wall Street Zen lowered AST SpaceMobile from a “sell” rating to a “strong sell” rating in a report on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $87.60.

AST SpaceMobile Price Performance

The firm has a 50 day simple moving average of $75.96 and a 200-day simple moving average of $86.21. 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 market cap of $27.92 billion, a PE ratio of -40.42 and a beta of 2.75.

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

Insider Buying and Selling

In related news, CTO Huiwen Yao sold 40,000 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $96.37, for a total transaction of $3,854,800.00. Following the completion of the sale, the chief technology officer owned 34,750 shares of the company’s stock, valued at $3,348,857.50. This represents a 53.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Julio A. Torres sold 15,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total transaction 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. This trade represents a 25.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 105,809 shares of company stock worth $9,748,492 in the last 90 days. 20.89% of the stock is owned by corporate insiders.

Institutional Trading of AST SpaceMobile

Hedge funds and other institutional investors have recently made changes to their positions in the business. Calton & Associates Inc. grew its stake in AST SpaceMobile by 0.8% during the 4th quarter. Calton & Associates Inc. now owns 13,579 shares of the company’s stock worth $986,000 after buying an additional 104 shares during the last quarter. Investmark Advisory Group LLC raised its stake in AST SpaceMobile by 2.7% in the fourth quarter. Investmark Advisory Group LLC now owns 4,645 shares of the company’s stock valued at $337,000 after buying an additional 120 shares during the last quarter. Atlantic Union Bankshares Corp boosted its holdings in AST SpaceMobile by 18.2% in the fourth quarter. Atlantic Union Bankshares Corp now owns 923 shares of the company’s stock worth $67,000 after acquiring an additional 142 shares in the last quarter. Larson Financial Group LLC boosted its holdings in AST SpaceMobile by 39.0% in the fourth quarter. Larson Financial Group LLC now owns 513 shares of the company’s stock worth $37,000 after acquiring an additional 144 shares in the last quarter. Finally, Capital Advisors Ltd. LLC grew its stake in shares of AST SpaceMobile by 6.6% during the first quarter. Capital Advisors Ltd. LLC now owns 2,638 shares of the company’s stock worth $219,000 after acquiring an additional 164 shares during the last quarter. Hedge funds and other institutional investors own 60.95% of the company’s stock.

AST SpaceMobile Company Profile

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.