AST SpaceMobile (NASDAQ:ASTS) Trading Down 4% – Should You Sell?

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s stock price fell 4% during trading on Thursday . The company traded as low as $59.87 and last traded at $59.91. 8,267,722 shares traded hands during mid-day trading, a decline of 52% from the average daily volume of 17,085,412 shares. The stock had previously closed at $62.42.

Trending Headlines about AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile is seeking to extend its 30-day FCC testing window for satellite operations in the 800 MHz band. The request, along with backing for a separate spectrum application from the Space Development Agency, highlights growing U.S. defense and government interest in satellite connectivity. AST SpaceMobile Looks to Extend Its 30-Day FCC Satellite Testing Window
• Positive Sentiment: A bullish investment case points to second-quarter revenue of approximately $31.5 million, up sharply from $1.2 million a year earlier, and a contracted revenue backlog of roughly $1.3 billion from commercial and government customers. This supports expectations for substantial revenue growth through 2028, although execution remains important. Prediction: AST SpaceMobile Triples Its Revenue Again by 2028
• Positive Sentiment: A new government task force targeting 10,000 annual space operations by 2035 could benefit the broader space industry through faster approvals, additional spaceports and improved airspace integration. The impact on ASTS is indirect but could improve the operating environment for satellite and launch companies. New Trump Task Force Targets 10,000 Annual Space Operations By 2035
• Neutral Sentiment: Technical commentary describes ASTS as effectively range-bound, while suggesting the shares could offer a short-term trading opportunity. This is a trading view rather than a change in the company’s fundamentals. Deadlocked AST SpaceMobile Stock Still Has a Shot as a Quick Scalp
• Neutral Sentiment: Reported short-interest data showed zero shares and a zero-day short-interest ratio, but the figures include an invalid “NaN” change and appear unreliable, offering little usable insight into trading pressure.
• Negative Sentiment: Comparisons with Jabil favor Jabil because of its lower valuation, more predictable estimates and expected earnings growth. Other analysis also suggests Rocket Lab may currently be the more suitable diversified portfolio choice, weighing on ASTS’s relative appeal. AST SpaceMobile vs. Jabil: Which Connectivity Stock Is a Better Buy?
• Negative Sentiment: AST SpaceMobile’s latest results missed expectations, including a wider-than-expected loss and slightly weaker revenue. The combination of ongoing losses, a high valuation and conflicting analyst sentiment helps explain the stock’s recent decline. Rocket Lab vs. AST SpaceMobile: Chase the Better SpaceX Disruptor

Analyst Ratings Changes

ASTS has been the topic of several research analyst reports. Cantor Fitzgerald upped their price objective on AST SpaceMobile from $80.00 to $90.00 and gave the company an “overweight” rating in a research note on Tuesday, August 11th. New Street Research set a $106.00 target price on AST SpaceMobile in a research report on Friday, May 29th. Berenberg Bank initiated coverage on AST SpaceMobile in a research note on Wednesday, September 2nd. They issued a “buy” rating and a $92.00 target price on the stock. Piper Sandler dropped their price target on AST SpaceMobile from $100.00 to $98.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 11th. Finally, UBS Group assumed coverage on AST SpaceMobile in a research report on Wednesday, September 2nd. They set a “buy” rating on the stock. Six investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, AST SpaceMobile presently has a consensus rating of “Hold” and an average target price of $86.58.

AST SpaceMobile Price Performance

The stock has a market cap of $23.30 billion, a PE ratio of -27.97 and a beta of 2.74. The company has a debt-to-equity ratio of 1.24, a current ratio of 13.05 and a quick ratio of 12.90. The firm’s 50 day moving average price is $64.58 and its two-hundred day moving average price is $79.80.

AST SpaceMobile (NASDAQ:ASTS) last announced its quarterly earnings results on Monday, August 10th. The company reported ($0.77) EPS for the quarter, missing analysts’ consensus estimates of ($0.32) by ($0.45). AST SpaceMobile had a negative net margin of 536.66% and a negative return on equity of 22.88%. The business had revenue of $31.52 million for the quarter, compared to analysts’ expectations of $34.53 million. During the same quarter in the previous year, the company posted ($0.41) earnings per share. On average, research analysts expect that AST SpaceMobile, Inc. will post -1.95 earnings per share for the current year.

Insider Activity

In related news, Director Adriana Cisneros purchased 10,822 shares of the business’s stock in a transaction dated Monday, August 31st. The stock was purchased at an average cost of $57.22 per share, with a total value of $619,234.84. Following the completion of the acquisition, the director directly owned 797,023 shares of the company’s stock, valued at approximately $45,605,656.06. The trade was a 1.38% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. 20.89% of the stock is currently owned by corporate insiders.

Institutional Trading of AST SpaceMobile

A number of institutional investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System grew its holdings in AST SpaceMobile by 11,947.9% during the 2nd quarter. California State Teachers Retirement System now owns 31,526,551 shares of the company’s stock valued at $2,801,449,000 after buying an additional 31,264,875 shares in the last quarter. Vodafone Ventures Ltd purchased a new stake in AST SpaceMobile in the fourth quarter valued at approximately $397,413,000. Morgan Stanley lifted its holdings in shares of AST SpaceMobile by 44.0% during the 4th quarter. Morgan Stanley now owns 4,661,551 shares of the company’s stock worth $338,569,000 after acquiring an additional 1,425,199 shares during the last quarter. 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 boosted 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 worth $287,011,000 after buying an additional 350,690 shares in the last quarter. Hedge funds and other institutional investors own 60.95% of the company’s stock.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc develops a space-based cellular broadband network designed to connect standard, unmodified mobile phones directly to satellites. Its planned service is intended to extend mobile connectivity beyond the coverage of traditional terrestrial wireless networks, including in rural, remote and underserved areas.

The company’s primary technology platform consists of large, low-Earth-orbit satellites known as BlueBirds. AST SpaceMobile is developing these satellites to provide voice, messaging and broadband data services through partnerships with mobile network operators, using existing cellular devices and spectrum where permitted.

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