AST SpaceMobile (NASDAQ:ASTS) Trading Down 17% – Time to Sell?

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s stock price traded down 17% during mid-day trading on Thursday . The stock traded as low as $53.33 and last traded at $55.01. 52,435,342 shares changed hands during mid-day trading, an increase of 182% from the average daily volume of 18,602,479 shares. The stock had previously closed at $66.31.

Key AST SpaceMobile News

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

• Negative Sentiment: AST SpaceMobile priced a $1 billion convertible senior notes offering, which investors are viewing as a potential dilution and balance-sheet headwind. Article: AST SpaceMobile Announces Pricing of Private Offering of $1.0 Billion of Convertible Senior Notes Due 2034
• Negative Sentiment: Investors are also focused on delays in the commercial satellite launch timeline, which adds to concerns that AST SpaceMobile may need more time and capital before its business model scales. Article: AST SpaceMobile stock sinks on double dose of bad news
• Neutral Sentiment: Several updates remained constructive for the long-term story, including regulatory approvals in New Zealand, Bell Canada completing a ground station in Québec, and progress on upcoming BlueBird launches. Article: AST SpaceMobile (ASTS) Secures Global Approvals As Texas Expansion And Launches Near
• Neutral Sentiment: The company’s stock has also been under pressure from broader speculation about capital use and whether the raise could support strategic acquisitions, which adds uncertainty but no confirmed transaction. Article: ASTS Stock Extends Selloff Overnight: Analyst Thinks It’s About To Buy A Rocket Company With $1B Raise

Wall Street Analyst Weigh In

ASTS has been the topic of a number of recent research reports. William Blair reaffirmed a “market perform” rating on shares of AST SpaceMobile in a report on Friday, May 29th. Weiss Ratings reissued a “sell (d-)” rating on shares of AST SpaceMobile in a report on Wednesday, June 24th. Wall Street Zen downgraded AST SpaceMobile from a “sell” rating to a “strong sell” rating in a research report on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft downgraded AST SpaceMobile from a “buy” rating to a “hold” rating and cut their target price for the stock from $117.00 to $106.00 in a research report on Friday, May 29th. Finally, B. Riley Financial upped their price target on AST SpaceMobile from $75.00 to $85.00 and gave the company a “neutral” rating in a research report on Tuesday, May 12th. Two analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average target price of $86.95.

AST SpaceMobile Stock Down 17.0%

The stock has a market capitalization of $21.35 billion, a P/E ratio of -30.90 and a beta of 2.69. The firm’s fifty day moving average is $87.32 and its 200-day moving average is $89.46. The company has a current ratio of 18.47, a quick ratio of 18.37 and a debt-to-equity ratio of 1.11.

AST SpaceMobile (NASDAQ:ASTS) last released its quarterly earnings results on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.43). The firm had revenue of $14.73 million during 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 quarterly revenue was up 1952.2% on a year-over-year basis. During the same quarter last year, the firm earned ($0.20) earnings per share. As a group, equities research analysts predict that AST SpaceMobile, Inc. will post -1.47 earnings per share for the current year.

Insider Activity

In related news, Director Julio A. Torres sold 15,000 shares of the 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 sale, the director directly owned 43,239 shares in the company, valued at $3,300,865.26. This represents a 25.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Andrew Martin Johnson sold 45,809 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $93.81, for a total value of $4,297,342.29. Following the sale, the chief financial officer directly owned 503,619 shares of the company’s stock, valued at $47,244,498.39. This represents a 8.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 105,809 shares of company stock worth $9,748,492. Insiders own 20.89% of the company’s stock.

Hedge Funds Weigh In On AST SpaceMobile

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Grove Bank & Trust acquired a new stake in shares of AST SpaceMobile in the second quarter valued at $27,000. Cornerstone Planning Group LLC raised its holdings in shares of AST SpaceMobile by 16,350.0% in 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. Crewe Advisors LLC acquired a new position in AST SpaceMobile during the 4th quarter worth about $25,000. Laurel Wealth Advisors LLC acquired a new position in AST SpaceMobile during the 4th quarter worth about $25,000. Finally, Portus Wealth Advisors LLC bought a new stake in AST SpaceMobile during the 1st quarter worth about $30,000. Institutional investors and hedge funds own 60.95% of the company’s stock.

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.