AST SpaceMobile (NASDAQ:ASTS) Trading Down 15.5% – Here’s What Happened

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares traded down 15.5% on Friday . The company traded as low as $81.50 and last traded at $82.41. 54,584,193 shares traded hands during trading, an increase of 201% from the average session volume of 18,132,814 shares. The stock had previously closed at $97.56.

Key AST SpaceMobile News

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

• Positive Sentiment: Some commentary remains constructive on AST SpaceMobile’s long-term potential, highlighting its direct-to-smartphone satellite connectivity model, nearly 60 mobile network operator partners, and a large deployment pipeline that could support a move toward $150 by 2027. Prediction: Can AST SpaceMobile Soar to $150 by 2027?
• Positive Sentiment: Earlier in the week, ASTS also benefited from bullish sector momentum after BlueBird launch timing was confirmed for June 17, reinforcing the view that near-term catalysts still exist despite Friday’s pullback. AST SpaceMobile Stock Climbs Ahead of SpaceX IPO As BlueBird Launch Date Confirmed for June 17
• Neutral Sentiment: Analysts and market commentary are framing the move as largely sentiment-driven rather than based on fresh company-specific operating news, with SpaceX IPO excitement lifting and then pressuring comparable space stocks throughout the session. SpaceX, Tesla, EchoStar, and More Stocks That Explain Today’s Market
• Negative Sentiment: AST SpaceMobile shares are being hit in a broad space-sector reset, with one report describing the stock as down sharply alongside Virgin Galactic and Rocket Lab as investors reassess valuations after the SpaceX debut. Virgin Galactic Craters 24%, Rocket Lab Drops 8%, AST SpaceMobile Falls 10% as SpaceX Hype Triggers a Space-Stock Shakeout
• Negative Sentiment: Short-seller criticism of space stocks is adding pressure to ASTS by reinforcing concerns that many of the sector’s growth expectations are too speculative in the wake of SpaceX’s public trading debut. Space Stocks Get Torched: Short Seller Calls Them ‘Sci-Fi Wishes’

Analysts Set New Price Targets

ASTS has been the subject of several recent research reports. New Street Research set a $106.00 target price on shares of AST SpaceMobile in a research note on Friday, May 29th. William Blair reissued a “market perform” rating on shares of AST SpaceMobile in a report on Friday, May 29th. Zacks Research upgraded AST SpaceMobile from a “strong sell” rating to a “hold” rating in a report on Wednesday, March 4th. Barclays raised their price objective on AST SpaceMobile from $60.00 to $65.00 and gave the company an “underweight” rating in a research report on Thursday, April 9th. Finally, Roth Mkm reiterated a “buy” rating and set a $108.00 price target on shares of AST SpaceMobile in a research report on Tuesday, May 12th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $81.33.

AST SpaceMobile Price Performance

The firm has a market cap of $31.98 billion, a price-to-earnings ratio of -46.30 and a beta of 2.70. The business’s 50-day moving average price is $90.45 and its two-hundred day moving average price is $87.96. The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37.

AST SpaceMobile (NASDAQ:ASTS) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.43). The company had revenue of $14.74 million for 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 was up 1952.2% on a year-over-year basis. During the same quarter last year, the company posted ($0.20) EPS. On average, research analysts forecast that AST SpaceMobile, Inc. will post -1.47 EPS for the current fiscal year.

Insider Activity at AST SpaceMobile

In related news, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $91.42, for a total value of $154,499,800.00. Following the completion of the transaction, the insider owned 29,330,155 shares of the company’s stock, valued at $2,681,362,770.10. This represents a 5.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Julio A. Torres sold 15,000 shares of the firm’s stock in a transaction on Wednesday, May 13th. The stock was 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 $3,300,865.26. The trade was a 25.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,140,000 shares of company stock worth $279,903,150 in the last quarter. Corporate insiders own 20.89% of the company’s stock.

Hedge Funds Weigh In On AST SpaceMobile

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in AST SpaceMobile by 7.9% during the fourth quarter. Vanguard Group Inc. now owns 21,488,180 shares of the company’s stock valued at $1,560,687,000 after acquiring an additional 1,568,292 shares during the last quarter. Vodafone Ventures Ltd acquired a new stake in shares of AST SpaceMobile in the 4th quarter worth $397,413,000. Morgan Stanley boosted its holdings in AST SpaceMobile by 44.0% during the 4th quarter. Morgan Stanley now owns 4,661,551 shares of the company’s stock valued at $338,569,000 after acquiring an additional 1,425,199 shares during the period. Geode Capital Management LLC lifted its stake in AST SpaceMobile by 9.8% during the fourth quarter. Geode Capital Management LLC now owns 4,522,549 shares of the company’s stock worth $328,749,000 after purchasing an additional 402,505 shares during the last quarter. Finally, State Street Corp lifted its stake in AST SpaceMobile by 9.7% in the fourth quarter. State Street Corp now owns 3,951,685 shares of the company’s stock valued at $287,011,000 after buying an additional 350,690 shares during the last quarter. Hedge funds and other institutional investors 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.