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

AST SpaceMobile, Inc. (NASDAQ:ASTS) gapped down before the market opened on Tuesday . The stock had previously closed at $86.77, but opened at $81.92. AST SpaceMobile shares last traded at $86.2280, with a volume of 5,419,813 shares changing hands.

AST SpaceMobile News Roundup

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

• Positive Sentiment: Japan is reportedly preparing about 150 billion yen, or roughly $926 million, in subsidies for a Rakuten Group-led consortium working with AST SpaceMobile to build a direct-to-mobile satellite network in Japan, a major validation of ASTS’s technology and a potential source of meaningful revenue. Article Title
• Positive Sentiment: AST SpaceMobile rose sharply after reports that it is partnering with Rakuten on a Japanese satellite communications project, reinforcing investor confidence that the company is moving closer to commercialization. Article Title
• Positive Sentiment: The broader space sector also got a lift from Rocket Lab’s Iridium deal, which may have helped increase investor appetite for satellite and space communications names like ASTS.
• Neutral Sentiment: Market commentary highlighted AST SpaceMobile as a high-beta momentum name with a large cash runway, but this was more opinion-driven than a new company-specific event. AST SpaceMobile stock page

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on ASTS shares. UBS Group cut their price target on AST SpaceMobile from $85.00 to $80.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 12th. 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 note on Wednesday, April 15th. Zacks Research upgraded AST SpaceMobile from a “strong sell” rating to a “hold” rating in a research note on Wednesday, March 4th. Finally, B. Riley Financial raised their target price on AST SpaceMobile from $75.00 to $85.00 and gave the stock a “neutral” rating in a report on Tuesday, May 12th. One research analyst has rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, AST SpaceMobile currently has a consensus rating of “Reduce” and a consensus target price of $85.09.

AST SpaceMobile Price Performance

The company has a quick ratio of 18.37, a current ratio of 18.47 and a debt-to-equity ratio of 1.11. The firm has a market capitalization of $33.42 billion, a PE ratio of -48.37 and a beta of 2.69. The stock has a 50-day moving average price of $87.26 and a 200 day moving average price of $89.41.

AST SpaceMobile (NASDAQ:ASTS) last announced its earnings results on Monday, May 11th. The company reported ($0.66) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.43). AST SpaceMobile had a negative net margin of 573.67% and a negative return on equity of 24.87%. The business had revenue of $14.73 million for the quarter, compared to analysts’ expectations of $39.01 million. During the same quarter last year, the business earned ($0.20) EPS. The company’s quarterly revenue was up 1952.2% on a year-over-year basis. Equities analysts forecast that AST SpaceMobile, Inc. will post -1.47 EPS for the current fiscal year.

Insider Activity at AST SpaceMobile

In other AST SpaceMobile news, Director Julio A. Torres sold 15,000 shares of the stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $76.34, for a total transaction of $1,145,100.00. Following the transaction, the director directly owned 43,239 shares of the company’s stock, valued at $3,300,865.26. This trade represents a 25.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Andrew Martin Johnson sold 45,809 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $93.81, for a total transaction of $4,297,342.29. Following the transaction, the chief financial officer directly owned 503,619 shares in the company, valued at approximately $47,244,498.39. The trade was a 8.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 3,145,809 shares of company stock valued at $280,645,292. Insiders own 20.89% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vodafone Ventures Ltd purchased a new stake in AST SpaceMobile during the 4th quarter worth approximately $397,413,000. Norges Bank purchased a new position in shares of AST SpaceMobile in the fourth quarter valued at approximately $198,270,000. Clear Street Group Inc. purchased a new position in shares of AST SpaceMobile in the third quarter valued at approximately $90,129,000. Vanguard Group Inc. boosted its stake in shares of AST SpaceMobile by 7.9% in the fourth quarter. Vanguard Group Inc. now owns 21,488,180 shares of the company’s stock worth $1,560,687,000 after acquiring an additional 1,568,292 shares during the last quarter. Finally, Morgan Stanley boosted its stake in shares of AST SpaceMobile by 44.0% in the fourth quarter. Morgan Stanley now owns 4,661,551 shares of the company’s stock worth $338,569,000 after acquiring an additional 1,425,199 shares during the last quarter. 60.95% of the stock is owned by hedge funds and other institutional investors.

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.