TLDR
- AST SpaceMobile stock jumped 8.9% to $90.92 on Monday, trading above volume on higher-than-average turnover
- Analyst consensus is “Hold” with an average price target of $45.66, roughly half the current share price
- The company missed Q3 earnings expectations by $0.27 per share and revenue came in $7.3 million below estimates
- Insiders sold 2.35 million shares worth $164 million over 90 days, including CTO Huiwen Yao’s sale of 40,000 shares
- Despite losses, institutional ownership remains at 60.95% with Vanguard increasing its stake by 13.4%
AST SpaceMobile shares climbed 8.9% to $90.92 during Monday’s trading session. The stock hit an intraday high of $92.45.
Trading volume reached approximately 20.5 million shares. This marked a 4% increase from the average daily volume of 19.8 million shares.
The stock now trades well above its moving averages. The 50-day moving average sits at $68.71 while the 200-day moving average is at $59.34.
AST SpaceMobile carries a market cap of $33.37 billion. The stock has a beta of 2.70, indicating high volatility compared to the broader market.
The company reported third-quarter results on November 10th. Revenue totaled $14.74 million, missing the consensus estimate of $22.04 million by $7.3 million.
The earnings miss was even more pronounced. AST SpaceMobile posted a loss of $0.45 per share, missing analyst expectations of $0.18 by $0.27.
Despite the miss, quarterly revenue jumped 1,236.4% compared to the same quarter last year. The company posted earnings of -$1.10 per share in the prior-year quarter.
The company maintains strong liquidity ratios. Its quick ratio stands at 9.48 and current ratio at 9.56, suggesting ample resources to cover short-term obligations.
However, profitability metrics paint a different picture. AST SpaceMobile reported a negative net margin of 1,639.59% and a negative return on equity of 27.76%.
The debt-to-equity ratio sits at 0.43. Analysts expect the company to post -$0.4 EPS for the current fiscal year.
Wall Street’s Bearish Stance
Analyst sentiment has turned cautious on the stock. Three analysts rate it as Buy, five as Hold, and three as Sell.
The consensus rating is “Hold” with an average price target of $45.66. This target sits roughly 50% below the current trading price.
Several firms have downgraded the stock recently. Zacks Research cut AST SpaceMobile from “hold” to “strong sell” in October.
Barclays downgraded shares from “overweight” to “underweight” on October 17th. The firm set a $60 price target.
UBS Group moved from “buy” to “neutral” in September. The firm slashed its price target from $62 to $43.
Not all moves were negative. Scotiabank upgraded AST SpaceMobile from “sector underperform” to “sector perform” on November 24th with a $45.60 price target.
Weiss Ratings maintained a “sell (d-)” rating in late December. The disconnect between market price and analyst targets remains wide.
Insider Sales and Institutional Activity
Insider selling has been active in recent months. CTO Huiwen Yao sold 40,000 shares on December 5th at an average price of $73.52.
This transaction totaled $2.94 million. The sale reduced Yao’s ownership by 89.39%, leaving him with 4,750 shares valued at $349,220.
COO Shanti B. Gupta sold 10,000 shares on December 10th at $77.34 per share. The transaction was worth $773,400 and reduced his stake by 2.55%.
Over the past 90 days, insiders sold 2.35 million shares worth $164.3 million. Insiders purchased only 2,765 shares worth $187,236 during the same period.
Company insiders currently own 30.90% of the stock. This remains a substantial ownership stake despite recent selling.
Institutional investors hold 60.95% of shares. Several major funds have increased their positions recently.
Vanguard Group raised its holdings by 13.4% during the third quarter. The fund now owns 19.9 million shares valued at $977.7 million.
Clear Street Group bought a new position valued at $90.1 million in the third quarter. Voya Investment Management increased its stake by 1,992.5% in the first quarter.
Van ECK Associates boosted its position by 125.1% in the third quarter. The firm now holds 782,041 shares worth $38.4 million.
AST SpaceMobile develops a space-based cellular network designed to connect standard mobile phones directly to satellites. The company operates a constellation of low-Earth-orbit satellites with large phased-array antennas for mobile broadband service.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
