AST SpaceMobile (NASDAQ:ASTS) Trading 8.3% Higher – Still a Buy?

AST SpaceMobile, Inc. (NASDAQ:ASTS) traded up 8.3% on Wednesday . The stock traded as high as $131.20 and last traded at $129.60. 34,802,459 shares changed hands during mid-day trading, an increase of 103% from the average session volume of 17,131,365 shares. The stock had previously closed at $119.70.

Key Stories Impacting AST SpaceMobile

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

• Negative Sentiment: Blue Origin’s New Glenn rocket explosion raised fears of launch delays for AST SpaceMobile’s satellite program, since the company relies on partner launches to advance its constellation buildout. AST SpaceMobile stock crashes on Blue Origin disaster: buy the dip?
• Negative Sentiment: Deutsche Bank downgraded ASTS from buy to hold and set a $106 price target, signaling less upside from current levels. AST SpaceMobile downgrade by Deutsche Bank
• Negative Sentiment: Analysts and market commentary continue to flag ASTS’s high valuation, recent earnings miss, and dilution/debt concerns, which could weigh on the shares if execution slips. The SpaceX IPO Frenzy Is Creating 2 Very Different Bets (ASTS)
• Neutral Sentiment: Some recent coverage remains constructive on AST SpaceMobile’s long-term satellite-to-smartphone technology, strong liquidity, and telecom partnerships, but that optimism is being overshadowed by near-term launch risk. AST SpaceMobile’s Next Chapter Changes Everything

Wall Street Analysts Forecast Growth

Several research firms have commented on ASTS. Barclays increased their price objective on shares of AST SpaceMobile from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Thursday, April 9th. Zacks Research upgraded shares of AST SpaceMobile from a “strong sell” rating to a “hold” rating in a research note on Wednesday, March 4th. Weiss Ratings reiterated a “sell (d-)” rating on shares of AST SpaceMobile in a research note on Friday, March 27th. Wall Street Zen lowered shares of AST SpaceMobile from a “sell” rating to a “strong sell” rating in a research note on Wednesday, April 15th. Finally, B. Riley Financial raised their price target on shares of AST SpaceMobile from $75.00 to $85.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 12th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, AST SpaceMobile presently has an average rating of “Reduce” and a consensus target price of $81.33.

AST SpaceMobile Price Performance

The firm has a market capitalization of $42.74 billion, a PE ratio of -61.60 and a beta of 2.60. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47. The business’s 50 day moving average is $87.61 and its two-hundred day moving average is $85.05.

AST SpaceMobile (NASDAQ:ASTS) last announced its quarterly earnings results on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing the consensus estimate of ($0.23) by ($0.43). AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. The firm had revenue of $14.74 million during the quarter, compared to the consensus estimate of $39.01 million. During the same period in the previous year, the business earned ($0.20) earnings per share. The firm’s revenue for the quarter was up 1952.2% on a year-over-year basis. Equities research analysts anticipate that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current fiscal year.

Insider Activity at AST SpaceMobile

In other news, CFO Andrew Martin Johnson sold 5,000 shares of AST SpaceMobile stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $90.25, for a total transaction of $451,250.00. Following the completion of the sale, the chief financial officer directly owned 565,805 shares of the company’s stock, valued at approximately $51,063,901.25. The trade was a 0.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Julio A. Torres sold 15,000 shares of AST SpaceMobile 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 sale, the director directly owned 43,239 shares of the company’s stock, valued at $3,300,865.26. This represents a 25.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 3,100,000 shares of company stock valued at $276,048,350. 20.89% of the stock is currently owned by insiders.

Institutional Trading of AST SpaceMobile

A number of hedge funds have recently made changes to their positions in ASTS. REAP Financial Group LLC bought a new stake in shares of AST SpaceMobile during the 3rd quarter worth $25,000. Crewe Advisors LLC bought a new stake in shares of AST SpaceMobile during the 4th quarter worth $25,000. Laurel Wealth Advisors LLC purchased a new position in AST SpaceMobile in the 4th quarter worth $25,000. Cornerstone Planning Group LLC raised its position in AST SpaceMobile by 16,350.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock worth $27,000 after purchasing an additional 327 shares during the period. Finally, Byrne Asset Management LLC purchased a new position in AST SpaceMobile in the 4th quarter worth $29,000. 60.95% of the stock is owned by institutional investors.

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.