AST SpaceMobile (NASDAQ:ASTS) Stock Price Up 2.3% – Still a Buy?

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

Key Headlines Impacting AST SpaceMobile

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

Analyst Ratings Changes

Several brokerages have issued reports on ASTS. Piper Sandler downgraded shares of AST SpaceMobile from an “overweight” rating to a “neutral” rating and lowered their price objective for the company from $98.00 to $54.00 in a research report on Tuesday, October 13th. Cantor Fitzgerald boosted their target price on shares of AST SpaceMobile from $80.00 to $90.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 11th. Berenberg Bank assumed coverage on shares of AST SpaceMobile in a report on Wednesday, September 2nd. They set a “buy” rating and a $92.00 price target for the company. William Blair reiterated a “market perform” rating on shares of AST SpaceMobile in a report on Monday, October 5th. Finally, UBS Group began coverage on shares of AST SpaceMobile in a research report on Wednesday, September 2nd. They issued a “buy” rating for the company. Six research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $80.67.

AST SpaceMobile Stock Up 2.3%

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

AST SpaceMobile (NASDAQ:ASTS) last released its earnings results on Monday, August 10th. The company reported ($0.77) EPS for the quarter, missing the consensus estimate of ($0.32) by ($0.45). The business had revenue of $31.52 million for the quarter, compared to analysts’ expectations of $34.53 million. AST SpaceMobile had a negative net margin of 536.66% and a negative return on equity of 22.88%. During the same quarter last year, the company posted ($0.41) earnings per share. Equities research analysts anticipate that AST SpaceMobile, Inc. will post -1.91 EPS for the current fiscal year.

Insider Buying and Selling at AST SpaceMobile

In other AST SpaceMobile news, CTO Huiwen Yao sold 40,000 shares of the firm’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $58.93, for a total transaction 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 $2,047,817.50. This trade represents a 53.51% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Shanti Gupta sold 12,000 shares of the business’s stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $58.89, for a total transaction of $706,680.00. Following the completion of the sale, the chief operating officer directly owned 462,980 shares of the company’s stock, valued at $27,264,892.20. The trade was a 2.53% decrease in their position. The SEC filing for this sale provides additional information. 20.89% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AST SpaceMobile

Hedge funds have recently bought and sold shares of the company. ABN Amro Investment Solutions bought a new stake in shares of AST SpaceMobile during the 1st quarter worth $996,000. KBC Group NV grew its holdings in shares of AST SpaceMobile by 259.5% in the 1st quarter. KBC Group NV now owns 23,438 shares of the company’s stock worth $1,942,000 after acquiring an additional 16,918 shares during the last quarter. Bank of Nova Scotia acquired a new stake in shares of AST SpaceMobile during the first quarter worth $1,329,000. Sanders Morris Harris LLC acquired a new stake in shares of AST SpaceMobile during the third quarter worth $1,020,000. Finally, Swedbank AB acquired a new stake in shares of AST SpaceMobile during the first quarter worth $3,399,000. 60.95% of the stock is currently owned by institutional investors and hedge funds.

AST SpaceMobile Company Profile

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.