AST SpaceMobile (NASDAQ:ASTS) Shares Gap Down on Disappointing Earnings

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS) gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $36.89, but opened at $34.20. AST SpaceMobile shares last traded at $35.9320, with a volume of 4,156,811 shares trading hands.

The company reported ($0.44) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.03). AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%. The company had revenue of $42.32 million for the quarter, compared to analysts’ expectations of $45.73 million. During the same period last year, the business posted ($0.45) earnings per share. The business’s revenue was up 187.9% compared to the same quarter last year.

AST SpaceMobile News Summary

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

• Positive Sentiment: AST and Rakuten formed a joint venture to build a direct-to-device satellite network in Japan, with up to $1 billion in expected Japanese government support. The project could broaden AST’s commercial reach and provide connectivity in underserved areas and during emergencies. Article: AST SpaceMobile secures up to $1 billion for Japan satellite venture
• Positive Sentiment: AST maintained its 2026 revenue guidance of $150 million to $200 million. Third-quarter revenue rose about 188% year over year, though it remained below analysts’ expectations. Article: ASTS Q3 sales miss, revenue opportunity and growth focus
• Neutral Sentiment: Some coverage notes that AST is not expected to produce significant sales and earnings until its satellite constellation is operational, putting the quarterly sales shortfall in the context of its longer-term rollout. Article: AST SpaceMobile stock falls; why weak sales may not matter
• Negative Sentiment: Bank of America cut its price target to $45 from $80, keeping a Neutral rating. It cited a slower satellite launch cadence and later commercial availability, raising concerns about the timing of revenue growth. Article: BofA cuts ASTS price target
• Negative Sentiment: AST reported a third-quarter loss of $0.44 per share, wider than the $0.41 loss analysts expected, while revenue of $42.3 million missed the $45.7 million consensus. Article: AST SpaceMobile reports Q3 loss and misses revenue estimates
• Negative Sentiment: Several law firms publicized a securities class action concerning AST shares bought during March 4, 2025–July 15, 2026. The allegations are not findings of wrongdoing, but the litigation adds a potential reputational and legal overhang. Article: AST SpaceMobile shareholder alert regarding securities lawsuit

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on ASTS shares. Deutsche Bank Aktiengesellschaft raised AST SpaceMobile from a “hold” rating to a “buy” rating and set a $93.00 target price for the company in a research report on Monday, October 12th. Scotiabank raised AST SpaceMobile from a “sector perform” rating to a “sector outperform” rating and increased their price target for the stock from $50.80 to $55.70 in a research report on Friday, October 23rd. Citigroup restated a “positive” rating on shares of AST SpaceMobile in a research note on Tuesday. Berenberg Bank began coverage on AST SpaceMobile in a research note on Wednesday, September 2nd. They set a “buy” rating and a $92.00 price target on the stock. Finally, Royal Bank Of Canada downgraded AST SpaceMobile to a “sector perform” rating in a report on Friday, October 2nd. Six research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $77.17.

Insiders Place Their Bets

In other news, CTO Huiwen Yao sold 40,000 shares of the business’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $58.93, for a total value of $2,357,200.00. Following the completion of the transaction, the chief technology officer directly owned 34,750 shares of the company’s stock, valued at approximately $2,047,817.50. The trade was a 53.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Adriana Cisneros acquired 10,822 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were bought at an average price of $57.22 per share, with a total value of $619,234.84. Following the completion of the purchase, the director directly owned 797,023 shares in the company, valued at $45,605,656.06. The trade was a 1.38% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 20.89% of the stock is owned by company insiders.

Hedge Funds Weigh In On AST SpaceMobile

A number of large investors have recently added to or reduced their stakes in ASTS. Banco Santander S.A. raised its stake in AST SpaceMobile by 99.1% in the 3rd quarter. Banco Santander S.A. now owns 11,333 shares of the company’s stock worth $667,000 after acquiring an additional 5,641 shares during the last quarter. HighTower Advisors LLC raised its position in shares of AST SpaceMobile by 1.1% in the third quarter. HighTower Advisors LLC now owns 387,685 shares of the company’s stock worth $22,819,000 after acquiring an additional 4,318 shares during the period. Thoroughbred Financial Services LLC raised its holdings in AST SpaceMobile by 30.7% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 6,284 shares of the company’s stock worth $369,000 after purchasing an additional 1,476 shares during the period. IFG Advisory LLC lifted its position in shares of AST SpaceMobile by 130.7% during the 3rd quarter. IFG Advisory LLC now owns 1,306 shares of the company’s stock valued at $77,000 after buying an additional 740 shares in the last quarter. Finally, Danica Pension Livsforsikringsaktieselskab lifted its holdings in AST SpaceMobile by 183.6% during the third quarter. Danica Pension Livsforsikringsaktieselskab now owns 12,904 shares of the company’s stock valued at $760,000 after purchasing an additional 8,354 shares in the last quarter. 60.95% of the stock is currently owned by institutional investors.

AST SpaceMobile Trading Down 4.0%

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 company has a fifty day moving average of $51.74 and a 200-day moving average of $75.68. The company has a market capitalization of $13.79 billion, a price-to-earnings ratio of -16.54 and a beta of 2.88.

About AST SpaceMobile

AST SpaceMobile, Inc develops a space-based cellular broadband network designed to connect directly with standard mobile phones, without requiring users to purchase specialized satellite devices. Its planned services include voice calls, text messaging and mobile broadband, delivered through partnerships with mobile network operators and integrated with their existing networks.

The company is developing and deploying its BlueBird satellite system to provide coverage in areas where terrestrial cellular networks are unavailable or limited.