AST SpaceMobile (NASDAQ:ASTS) Upgraded to Hold at New Street Research

AST SpaceMobile (NASDAQ:ASTS) was upgraded by New Street Research to a “hold” rating in a report issued on Wednesday,Zacks.com reports.

Several other research analysts have also issued reports on the stock. UBS Group dropped their price target on shares of AST SpaceMobile from $85.00 to $80.00 and set a “neutral” rating for the company in a research report on Tuesday. Zacks Research raised shares of AST SpaceMobile from a “strong sell” rating to a “hold” rating in a research report on Wednesday, March 4th. Wall Street Zen lowered shares of AST SpaceMobile from a “sell” rating to a “strong sell” rating in a research report on Wednesday, April 15th. Weiss Ratings reissued a “sell (d-)” rating on shares of AST SpaceMobile in a research report on Friday, March 27th. Finally, B. Riley Financial increased their price target on shares of AST SpaceMobile from $75.00 to $85.00 and gave the stock a “neutral” rating in a research report on Tuesday. Two research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $79.45.

AST SpaceMobile Stock Performance

NASDAQ:ASTS opened at $83.01 on Wednesday. The firm’s 50-day moving average is $85.08 and its 200-day moving average is $82.95. AST SpaceMobile has a 52-week low of $22.47 and a 52-week high of $129.89. The company has a debt-to-equity ratio of 1.11, a quick ratio of 16.27 and a current ratio of 18.47. The company has a market cap of $31.71 billion, a price-to-earnings ratio of -46.63 and a beta of 2.60.

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

Insider Buying and Selling

In related news, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $91.42, for a total value of $154,499,800.00. Following the completion of the transaction, the insider owned 29,330,155 shares of the company’s stock, valued at $2,681,362,770.10. This represents a 5.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the company’s stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $88.88, for a total transaction of $3,555,200.00. Following the sale, the chief technology officer directly owned 4,750 shares in the company, valued at $422,180. This represents a 89.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 3,095,000 shares of company stock valued at $275,597,100 over the last quarter. Corporate insiders own 20.89% of the company’s stock.

Institutional Trading of AST SpaceMobile

Large investors have recently added to or reduced their stakes in the company. REAP Financial Group LLC bought a new stake in AST SpaceMobile during the third quarter worth about $25,000. Crewe Advisors LLC bought a new stake in AST SpaceMobile during the fourth quarter worth about $25,000. Laurel Wealth Advisors LLC bought a new stake in AST SpaceMobile during the fourth quarter worth about $25,000. Cornerstone Planning Group LLC grew its stake in AST SpaceMobile by 16,350.0% during the first quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock worth $27,000 after buying an additional 327 shares during the last quarter. Finally, Byrne Asset Management LLC bought a new stake in AST SpaceMobile during the fourth quarter worth about $29,000. 60.95% of the stock is owned by institutional investors.

Key Headlines Impacting AST SpaceMobile

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

• Positive Sentiment: AST SpaceMobile welcomed the announcement that AT&T, T-Mobile and Verizon are forming a satellite-to-phone joint venture to improve coverage in dead zones. Investors see this as validation of ASTS’s direct-to-device satellite connectivity market and a potential boost to future demand. Article Title
• Positive Sentiment: New Street Research launched coverage of the space economy and included AST SpaceMobile among the stocks it is tracking, which can draw more investor attention to the name and support trading interest. Article Title
• Neutral Sentiment: Analysts’ views remain mixed, but one new report says consensus has turned to “Reduce,” reflecting caution after ASTS’s recent earnings miss and ongoing execution concerns. Article Title
• Negative Sentiment: Director Julio A. Torres sold 15,000 shares at $76.34, a move that may be viewed as insider selling and could weigh on sentiment despite the remaining stake. Article Title
• Negative Sentiment: Post-earnings commentary continues to highlight a Q1 miss, darker consensus forecasts, and execution/competition risks, which reinforces concerns about AST SpaceMobile’s near-term fundamentals. Article Title

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.