AST SpaceMobile (NASDAQ:ASTS) Shares Gap Up – Here’s Why

AST SpaceMobile, Inc. (NASDAQ:ASTS)’s share price gapped up prior to trading on Monday . The stock had previously closed at $71.45, but opened at $76.13. AST SpaceMobile shares last traded at $77.6470, with a volume of 5,591,594 shares changing hands.

Key AST SpaceMobile News

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

• Positive Sentiment: Japan’s government approved up to $912 million in support for Rakuten’s satellite network, and Rakuten is reportedly in talks with AST SpaceMobile on a joint venture, boosting hopes for a major international partnership. Rakuten satellite project to receive up to $912 million in Japan govt grant
• Positive Sentiment: Reports that ASTS surged sharply on the Rakuten news reinforced bullish momentum and suggested traders are betting on larger commercial adoption of AST SpaceMobile’s satellite-to-phone technology. Rocket Lab Stock Surges as Iridium Deal Feeds Market Appetite for Space
• Positive Sentiment: AST SpaceMobile’s satellites continue to move toward broader deployment, with reports that BlueBird satellites 8-10 went live and the company is building toward its 37th satellite, supporting the long-term network rollout story. ASTS Stock Jumps Overnight: BlueBirds 8-10 Go Live As AST SpaceMobile’s Satellite Army Builds Toward No. 37
• Neutral Sentiment: Additional commentary focused on space-sector momentum after Rocket Lab’s Iridium acquisition, which lifted sentiment across space stocks and likely helped ASTS participate in the broader rally. Why AST SpaceMobile, Inc. (ASTS) Outpaced the Stock Market Today
• Neutral Sentiment: Market chatter about insider selling and valuation did not appear to be the main driver today, but it remains a factor investors may watch given ASTS’s elevated volatility. Even CEOs Need Cash: Insider Selling Is Not the Only Signal in AI Stocks (ASTS)

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. New Street Research set a $106.00 target price on shares of AST SpaceMobile in a research report on Friday, May 29th. William Blair reissued a “market perform” rating on shares of AST SpaceMobile in a research report on Friday, May 29th. Wall Street Zen downgraded shares of AST SpaceMobile from a “sell” rating to a “strong sell” rating in a report on Wednesday, April 15th. UBS Group reduced their price objective on shares of AST SpaceMobile from $85.00 to $80.00 and set a “neutral” rating for the company in a research note on Tuesday, May 12th. Finally, Barclays boosted their target price on shares of AST SpaceMobile from $60.00 to $65.00 and gave the company an “underweight” rating in a report on Thursday, April 9th. One research analyst has rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average target price of $85.09.

AST SpaceMobile Stock Performance

The business’s fifty day moving average price is $87.16 and its 200-day moving average price is $89.40. The company has a debt-to-equity ratio of 1.11, a current ratio of 18.47 and a quick ratio of 18.37. The stock has a market capitalization of $34.49 billion, a PE ratio of -49.92 and a beta of 2.70.

AST SpaceMobile (NASDAQ:ASTS) last issued its quarterly earnings data on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing the consensus estimate of ($0.23) by ($0.43). The firm had revenue of $14.73 million for the quarter, compared to analysts’ expectations 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 revenue was up 1952.2% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.20) EPS. As a group, equities research analysts expect that AST SpaceMobile, Inc. will post -1.47 EPS for the current year.

Insiders Place Their Bets

In other AST SpaceMobile news, CTO Huiwen Yao sold 40,000 shares of AST SpaceMobile stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $96.37, for a total transaction of $3,854,800.00. Following the completion of the sale, the chief technology officer directly owned 34,750 shares in the company, valued at $3,348,857.50. The trade was a 53.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Hiroshi Mikitani sold 1,690,000 shares of the business’s stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $91.42, for a total transaction of $154,499,800.00. Following the completion of the transaction, the insider directly owned 29,330,155 shares of the company’s stock, valued at approximately $2,681,362,770.10. This represents a 5.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 3,145,809 shares of company stock valued at $280,645,292 in the last ninety days. Corporate insiders own 20.89% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. 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 position in shares of AST SpaceMobile during the 4th quarter valued at about $25,000. Cornerstone Planning Group LLC increased its position in shares of AST SpaceMobile by 16,350.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock valued at $27,000 after purchasing an additional 327 shares during the last quarter. Byrne Asset Management LLC purchased a new position in shares of AST SpaceMobile during the 4th quarter valued at about $29,000. Finally, Acumen Wealth Advisors LLC purchased a new position in shares of AST SpaceMobile during the 4th quarter valued at about $29,000. Institutional investors 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.