TLDR
- AST SpaceMobile stock slid 6% to close at $56.93 on Thursday, on volume above its daily average.
- A newly filed class action lawsuit claims the company understated its cash needs and liquidity risks.
- The stock carries a Hold rating on average, with price targets ranging from $65 to $98.
- Last quarterās earnings missed estimates on both revenue and per-share loss.
- Positive developments, including a satellite test in Canada, were overshadowed by the legal news.
Shares of AST SpaceMobile fell 6% on Thursday, ending the session at $56.93. Trading volume topped 17.8 million stock, roughly 8% above the recent daily average. The stock had opened at $60.65 before the slide.
The decline tracks back to a newly announced securities class action lawsuit. It covers anyone who bought ASTS stock between March 2025 and July 2026.
The lawsuit alleges the company didnāt properly disclose risks around user adoption. It also points to dilution from three separate $1 billion convertible note deals.
These are allegations only, not proven claims. The deadline for investors to join as lead plaintiff is November 13, 2026.
Timing worked against the stock too. News that SpaceX may be arranging a large debt deal added extra pressure across the satellite sector this week.
How Analysts Are Reading the Situation
Coverage of ASTS remains mixed. Five analysts rate it a Buy, seven have it at Hold, and two call it a Sell.
B. Riley Financial downgraded the stock from Buy to Neutral earlier this month, cutting its target from $85 to $65. Berenberg Bank takes the opposite view, starting coverage at Buy with a $92 target.
Piper Sandler holds an Overweight rating with a $98 target. Scotiabank recently upgraded its rating to Sector Perform, setting a target of $50.80.
Across the Street, the average price target comes in at $84.58. Thatās well above where the stock currently trades.
Why Cash Burn Keeps Coming Up
The companyās finances remain the central worry for bears. Last quarterās loss came in at $0.77 per share, missing the $0.32 loss analysts had forecast.
Revenue also fell short, landing at $31.52 million against expectations of $34.53 million. Net margin for the period was a negative 536.66%.
Analysts estimate AST SpaceMobile could burn through about $3.2 billion in cash before 2029. That projection keeps dilution concerns alive for current holders.
Insider trading tells a mixed story. CTO Huiwen Yao sold 40,000 stock in September near $58.93 a share, cutting his stake by more than half.
Director Adriana Cisneros moved the other way, buying 10,822 stock in late August at $57.22 each. Company insiders collectively hold about 21% of the stock.
Not all the weekās news was negative. AST SpaceMobile and TELUS finished a direct-to-smartphone satellite test in Canada using unmodified phones, a step toward covering remote regions without special equipment.
The company also got a nod in a U.S.-Japan technology partnership. Its launch agreement with Blue Origin could gain relevance if New Glenn resumes flights as planned.
A rival satellite company cleared a regulatory milestone this week as well. Since ASTS depends heavily on carrier partnerships and regulatory approval, moves by competitors tend to draw scrutiny.
Institutional buying hasnāt slowed despite the volatility. Bank of America Corp DE boosted its position by over 140% in the first quarter, while Tidal Investments LLC expanded its holding by nearly 9,877% in the second quarter.
Institutions and hedge funds now own around 61% of the stock. The 50-day moving average sits at $63.10, the 200-day average at $76.08, and the market cap stands near $22.16 billion.
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