AST SpaceMobile (NASDAQ:ASTS) Stock Jumps 2.3% – Time to Buy?

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares traded up 2.3% on Tuesday. The company traded as high as $38.68 and last traded at $37.15. Approximately 9,193,900 shares traded hands during mid-day trading, a decline of 45% from the average session volume of 16,608,871 shares. The stock had previously closed at $36.33.

Key AST SpaceMobile News

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

• Positive Sentiment: AST SpaceMobile and AT&T reported the first successful handoff of an active call between a ground cellular network and AST’s direct-to-device satellite service, a step toward continuous coverage on standard phones. AT&T and AST SpaceMobile complete network handoff
• Positive Sentiment: Brazilian regulatory approvals for spectrum, together with operator agreements, could advance AST’s satellite cellular-service plans and provide a potential catalyst ahead of earnings. Brazil regulatory approval and operator deals
• Neutral Sentiment: AST is preparing for its Nov. 9 Q3 earnings report. Investors will look for progress on deployment, service readiness and funding needs; a preview cautioned that the company may not be positioned for an earnings beat. Q3 earnings preview
• Negative Sentiment: Reports that SpaceX is discussing a potential Boost Mobile deal raised concern that it could gain direct access to wireless subscribers and intensify competition for AST’s partner-led model, potentially pressuring pricing and adoption. SpaceX and Boost Mobile competition concerns
• Negative Sentiment: Coverage also highlighted satellite deployment delays and substantial cash burn, adding execution and financing risks. Multiple law firms publicized a securities class action alleging misleading statements or omissions about liquidity and capital; these are allegations, and investors have until Nov. 13 to seek lead-plaintiff status. Delays and cash burn Class action deadline notice

Wall Street Analysts Forecast Growth

A number of analysts have commented on ASTS shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of AST SpaceMobile in a research note on Monday, September 21st. Royal Bank Of Canada downgraded shares of AST SpaceMobile to a “sector perform” rating in a research report on Friday, October 2nd. William Blair restated a “market perform” rating on shares of AST SpaceMobile in a report on Monday, October 5th. Berenberg Bank initiated coverage on shares of AST SpaceMobile in a research report on Wednesday, September 2nd. They issued a “buy” rating and a $92.00 price target for the company. Finally, Scotiabank raised shares of AST SpaceMobile from a “sector perform” rating to a “sector outperform” rating and raised their price objective for the stock from $50.80 to $55.70 in a research note on Friday, October 23rd. Six analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, AST SpaceMobile has an average rating of “Hold” and an average price target of $80.67.

AST SpaceMobile Price Performance

The stock has a market capitalization of $14.46 billion, a price-to-earnings ratio of -17.36 and a beta of 2.72. The company has a current ratio of 13.05, a quick ratio of 12.90 and a debt-to-equity ratio of 1.24. The stock has a 50-day simple moving average of $54.37 and a 200 day simple moving average of $77.46.

AST SpaceMobile (NASDAQ:ASTS) last posted its quarterly earnings results on Monday, August 10th. The company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.32) by ($0.45). The company had revenue of $31.52 million during the quarter, compared to analysts’ expectations 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 period last year, the company earned ($0.41) earnings per share. On average, equities research analysts forecast that AST SpaceMobile, Inc. will post -1.91 EPS for the current fiscal year.

Insider Buying and Selling at AST SpaceMobile

In related news, Director Adriana Cisneros bought 10,822 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was bought at an average price of $57.22 per share, with a total value of $619,234.84. Following the purchase, the director directly owned 797,023 shares of the company’s stock, valued at approximately $45,605,656.06. This represents a 1.38% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, COO Shanti B. Gupta sold 12,000 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $58.89, for a total transaction of $706,680.00. Following the transaction, the chief operating officer owned 462,980 shares in the company, valued at approximately $27,264,892.20. This represents a 2.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 20.89% of the company’s stock.

Institutional Trading of AST SpaceMobile

Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of America Corp DE grew its stake in AST SpaceMobile by 140.3% in the first quarter. Bank of America Corp DE now owns 1,644,246 shares of the company’s stock valued at $136,259,000 after purchasing an additional 960,045 shares in the last quarter. First Trust Advisors LP raised its stake in shares of AST SpaceMobile by 14.3% during the 1st quarter. First Trust Advisors LP now owns 1,316,852 shares of the company’s stock worth $109,128,000 after purchasing an additional 164,303 shares in the last quarter. Tidal Investments LLC raised its stake in shares of AST SpaceMobile by 9,876.8% during the 2nd quarter. Tidal Investments LLC now owns 1,049,061 shares of the company’s stock worth $93,220,000 after purchasing an additional 1,038,546 shares in the last quarter. Tema ETFs LLC lifted its holdings in shares of AST SpaceMobile by 109,486.8% during the 2nd quarter. Tema ETFs LLC now owns 1,003,815 shares of the company’s stock valued at $89,199,000 after buying an additional 1,002,899 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in shares of AST SpaceMobile by 21.5% during the 1st quarter. Bank of New York Mellon Corp now owns 837,559 shares of the company’s stock valued at $69,409,000 after buying an additional 148,464 shares during the last quarter. 60.95% of the stock is currently owned by hedge funds and other institutional investors.

About AST SpaceMobile

AST SpaceMobile, Inc is a space-based communications company developing a global cellular broadband network designed to connect directly with standard, unmodified mobile phones. Its technology is intended to extend wireless coverage beyond traditional terrestrial networks, including in rural, remote and underserved areas.

The company is building and deploying a constellation of large low Earth orbit satellites, known as the BlueBird satellite system. AST SpaceMobile plans to provide voice, messaging, data and broadband services through partnerships with mobile network operators, allowing subscribers to remain connected outside the reach of conventional cellular towers.

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