AST SpaceMobile (NASDAQ:ASTS) Shares Up 10.7% – Time to Buy?

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s share price shot up 10.7% during mid-day trading on Tuesday . The stock traded as high as $71.27 and last traded at $70.31. 19,471,358 shares changed hands during trading, an increase of 7% from the average session volume of 18,257,463 shares. The stock had previously closed at $63.52.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: Japan approval expands the addressable market. AST SpaceMobile received regulatory approval to provide direct-to-cell satellite services in Japan with Rakuten Mobile. The partnership could provide connectivity to ordinary smartphones using AST’s BlueBird satellites and strengthens the company’s international commercialization strategy. AST SpaceMobile Secures Japan Direct To Cell Approval
• Positive Sentiment: European expansion adds major carrier support. AST SpaceMobile said network-integration testing is underway across the U.K., Ireland, Romania, France, the Czech Republic, Germany, Spain and Ukraine, working with Vodafone, Deutsche Telekom and Orange. Carrier collaboration improves the company’s prospects for launching space-based cellular broadband across Europe, subject to regulatory and technical approvals. AST SpaceMobile Accelerates Presence Across Europe
• Positive Sentiment: Satellite deployment continues ahead of service launch. The successful launch of BlueBird satellites 11, 12 and 13 increases the planned network capacity and supports AST SpaceMobile’s goal of beginning beta services later this year. The company also highlighted a Guinness World Record for its large commercial communications arrays in low Earth orbit. AST SpaceMobile Announces Successful Orbital Launch
• Neutral Sentiment: Broader space-stock strength is providing a trading tailwind. ASTS rose alongside SpaceX and Rocket Lab as investors continued to favor satellite and space-related equities. This sector-driven support may be momentum-oriented rather than based on AST SpaceMobile-specific financial results. Space Stocks Rally
• Negative Sentiment: Earnings and valuation remain key risks. AST SpaceMobile is scheduled to report second-quarter results after the close on Aug. 10. Investors will focus on cash use, losses, revenue conversion and progress toward commercial service; the stock’s elevated valuation leaves limited room for execution setbacks. AST SpaceMobile Earnings Preview
• Negative Sentiment: Potential legal scrutiny could weigh on sentiment. Pomerantz LLP announced an investigation into claims on behalf of ASTS investors, creating an additional headline and litigation risk even though no allegations or outcome have been established. Pomerantz ASTS Investor Investigation

Analysts Set New Price Targets

A number of research firms have recently commented on ASTS. 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. Deutsche Bank Aktiengesellschaft downgraded shares of AST SpaceMobile from a “buy” rating to a “hold” rating and lowered their target price for the stock from $117.00 to $106.00 in a research note on Friday, May 29th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of AST SpaceMobile in a research report on Wednesday, June 24th. Scotiabank upgraded AST SpaceMobile from a “sector underperform” rating to a “sector perform” rating and set a $50.80 price target for the company in a report on Wednesday, July 29th. Finally, New Street Research set a $106.00 price objective on AST SpaceMobile in a research report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $87.60.

AST SpaceMobile Price Performance

The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37. The firm has a market capitalization of $26.14 billion, a price-to-earnings ratio of -37.84 and a beta of 2.75. The business’s fifty day simple moving average is $78.10 and its 200 day simple moving average is $86.65.

AST SpaceMobile (NASDAQ:ASTS) last announced its quarterly earnings data on Monday, May 11th. The company reported ($0.66) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.43). The company had revenue of $14.73 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 for the quarter was up 1952.2% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.20) EPS. On average, research analysts forecast that AST SpaceMobile, Inc. will post -1.38 EPS for the current year.

Insider Buying and Selling

In related news, Director Julio A. Torres sold 15,000 shares of the company’s stock in a transaction that occurred 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 transaction, the director directly owned 43,239 shares of the company’s stock, valued at approximately $3,300,865.26. This represents a 25.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Andrew Martin Johnson sold 45,809 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $93.81, for a total value of $4,297,342.29. Following the completion of the transaction, the chief financial officer owned 503,619 shares in the company, valued at approximately $47,244,498.39. The trade was a 8.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 105,809 shares of company stock valued at $9,748,492. 20.89% of the stock is owned by company insiders.

Institutional Trading of AST SpaceMobile

Several hedge funds have recently bought and sold shares of ASTS. Laurel Wealth Advisors LLC acquired a new position in AST SpaceMobile during the fourth quarter worth $25,000. Cornerstone Planning Group LLC grew its holdings in shares of AST SpaceMobile by 16,350.0% during the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock valued at $27,000 after buying an additional 327 shares during the last quarter. Grove Bank & Trust bought a new stake in shares of AST SpaceMobile during the second quarter worth about $27,000. Acumen Wealth Advisors LLC acquired a new stake in shares of AST SpaceMobile in the 4th quarter worth about $29,000. Finally, Harvest Fund Management Co. Ltd acquired a new stake in shares of AST SpaceMobile in the 3rd quarter worth about $29,000. Institutional investors and hedge funds own 60.95% of the company’s stock.

AST SpaceMobile Company Profile

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.