AST SpaceMobile (NASDAQ:ASTS) Shares Down 8.7% on Disappointing Earnings

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s share price was down 8.7% during mid-day trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $31.96 and last traded at $33.69. 25,533,446 shares traded hands during trading, an increase of 52% from the average session volume of 16,847,510 shares. The stock had previously closed at $36.89.

The company reported ($0.44) EPS for the quarter, missing the consensus estimate of ($0.41) by ($0.03). AST SpaceMobile had a negative return on equity of 22.88% and a negative net margin of 536.66%. The company had revenue of $42.32 million during the quarter, compared to the consensus estimate of $45.73 million. During the same period last year, the business earned ($0.45) EPS. The firm’s quarterly revenue was up 187.9% compared to the same quarter last year.

AST SpaceMobile News Roundup

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

• Positive Sentiment: Japan venture adds a potential growth market: AST and Rakuten plan to build a direct-to-smartphone satellite network in Japan, with up to $1 billion in expected Japanese government support. Article
• Positive Sentiment: Expansion targets remain ambitious: AST is targeting 45 satellites in orbit by mid-2027, a production rate of six satellites per month by December, and initial intermittent service before year-end. It also reaffirmed 2026 revenue guidance of $150 million to $200 million. Article
• Neutral Sentiment: Revenue is growing quickly, but remains below expectations: Third-quarter revenue rose about 188% year over year to $42.3 million, though it missed analyst estimates. Article
• Negative Sentiment: Quarterly results disappointed: AST reported a loss of $0.44 per share, wider than the $0.41 consensus loss, while revenue also fell short. Higher costs tied to satellite expansion are pressuring results. Article
• Negative Sentiment: Analysts cut targets amid launch concerns: UBS lowered its target to $43 from $78 and BofA to $45 from $80, citing a slower launch cadence and later commercial availability. Investors are also concerned that AST’s rocket strategy could increase cash needs and that launch capacity is outside its control. Article
• Negative Sentiment: Legal overhang: Law firms are publicizing a securities class action and a November 13 lead-plaintiff deadline. The allegations are not findings of wrongdoing, but add reputational uncertainty. Article

Wall Street Analysts Forecast Growth

ASTS has been the topic of a number of recent analyst reports. Cantor Fitzgerald restated an “overweight” rating on shares of AST SpaceMobile in a research note on Monday. Berenberg Bank began coverage on shares of AST SpaceMobile in a research note on Wednesday, September 2nd. They issued a “buy” rating and a $92.00 price objective for the company. Citigroup restated a “positive” rating on shares of AST SpaceMobile in a research report on Tuesday. Scotiabank upgraded shares of AST SpaceMobile from a “sector perform” rating to a “sector outperform” rating and lifted their target price for the company from $50.80 to $55.70 in a research note on Friday, October 23rd. Finally, Bank of America restated a “neutral” rating on shares of AST SpaceMobile in a research note on Tuesday. Six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, AST SpaceMobile has an average rating of “Hold” and a consensus price target of $75.47.

Insider Buying and Selling

In related news, CTO Huiwen Yao sold 40,000 shares of AST SpaceMobile stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $58.93, for a total transaction of $2,357,200.00. Following the sale, the chief technology officer owned 34,750 shares of the company’s stock, valued at approximately $2,047,817.50. This trade represents a 53.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Shanti Gupta sold 12,000 shares of AST SpaceMobile stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $58.89, for a total value of $706,680.00. Following the sale, the chief operating officer directly owned 462,980 shares in the company, valued at $27,264,892.20. This trade represents a 2.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 20.89% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AST SpaceMobile

Institutional investors and hedge funds have recently modified their holdings of the stock. Bank of America Corp DE grew its position in shares of AST SpaceMobile by 140.3% during the first quarter. Bank of America Corp DE now owns 1,644,246 shares of the company’s stock valued at $136,259,000 after purchasing an additional 960,045 shares in the last quarter. First Trust Advisors LP boosted its stake in AST SpaceMobile by 14.3% during the first quarter. First Trust Advisors LP now owns 1,316,852 shares of the company’s stock valued at $109,128,000 after buying an additional 164,303 shares during the last quarter. Tidal Investments LLC boosted its stake in AST SpaceMobile by 9,876.8% during the second quarter. Tidal Investments LLC now owns 1,049,061 shares of the company’s stock valued at $93,220,000 after buying an additional 1,038,546 shares during the last quarter. Tema ETFs LLC boosted its stake in AST SpaceMobile by 109,486.8% during the second quarter. Tema ETFs LLC now owns 1,003,815 shares of the company’s stock valued at $89,199,000 after buying an additional 1,002,899 shares during the last quarter. Finally, Voya Investment Management LLC grew its holdings in AST SpaceMobile by 32.4% during the 3rd quarter. Voya Investment Management LLC now owns 1,376,109 shares of the company’s stock valued at $80,998,000 after buying an additional 336,502 shares in the last quarter. Institutional investors own 60.95% of the company’s stock.

AST SpaceMobile Price Performance

The company has a debt-to-equity ratio of 1.24, a quick ratio of 12.90 and a current ratio of 13.05. The firm has a fifty day simple moving average of $51.74 and a two-hundred day simple moving average of $75.68. The firm has a market cap of $13.11 billion, a PE ratio of -15.74 and a beta of 2.88.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc. develops a space-based cellular broadband network designed to connect directly with standard mobile phones, without requiring users to purchase specialized satellite devices. Its planned services include voice calls, text messaging and mobile broadband, delivered through partnerships with mobile network operators and integrated with their existing networks. The company is developing and deploying its BlueBird satellite system to provide coverage in areas where terrestrial cellular networks are unavailable or limited.