AST SpaceMobile (NASDAQ:ASTS) Stock Falls 5.2% – Should You Sell?

by · The Markets Daily

AST SpaceMobile, Inc. (NASDAQ:ASTS – Get Free Report)’s stock price dropped 5.2% on Thursday. The company traded as low as $37.80 and last traded at $38.77. Approximately 17,071,319 shares traded hands during mid-day trading, an increase of 2% from the average session volume of 16,752,719 shares. The stock had previously closed at $40.90.

Key Stories Impacting AST SpaceMobile

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

  • Positive Sentiment: Bank of America reportedly expects AST SpaceMobile to begin providing intermittent satellite-based cellular broadband coverage in parts of the United States, Canada, Japan, the United Kingdom and Saudi Arabia by the end of 2026. The anticipated service launch supports the company’s commercialization story and provides a potential long-term catalyst. AST SpaceMobile Targets Initial Satellite Broadband Coverage in Five Countries by End of 2026
  • Neutral Sentiment: AST SpaceMobile’s CFO, Andrew Johnson, received a new three-year employment agreement with a minimum annual salary of $250,000, potential bonuses and stock awards. The agreement provides management continuity but is not expected to materially change the company’s near-term outlook. ASTS Stock Jumps Overnight: CFO Gets New 3-Year Contract
  • Negative Sentiment: Several law firms publicized a securities class action against AST SpaceMobile and certain executives. The allegations reportedly concern statements that the company was fully funded and maintained a durable competitive lead, despite subsequent $1 billion convertible-note offerings and analyst concerns about competition and adoption. Investors who purchased securities between March 4, 2025, and July 15, 2026, have until November 13, 2026, to seek lead-plaintiff status. The litigation adds reputational, legal and potential financial risk. Pomerantz Class Action Announcement
  • Negative Sentiment: UBS cut its ASTS price target to $43 from $62, while Scotiabank maintained a Sell rating with a $45.60 target. The revisions reinforce concerns about capital needs, Starlink competition and the pace of customer adoption. Levi & Korsinsky ASTS Investor Notice
  • Negative Sentiment: A risk-off technology selloff hit high-valued space stocks, with AST SpaceMobile falling alongside SpaceX and Rocket Lab. This sector-wide pressure is amplifying company-specific concerns and investor profit-taking. Space Stocks Fall in Technology Selloff

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Piper Sandler lowered shares of AST SpaceMobile from an “overweight” rating to a “neutral” rating and lowered their price objective for the stock from $98.00 to $54.00 in a research report on Tuesday, October 13th. Royal Bank Of Canada downgraded shares of AST SpaceMobile to a “sector perform” rating in a research report on Friday, October 2nd. Deutsche Bank Aktiengesellschaft upgraded shares of AST SpaceMobile from a “hold” rating to a “buy” rating and set a $93.00 price target for the company in a research note on Monday, October 12th. Scotiabank raised AST SpaceMobile from a “sector underperform” rating to a “sector perform” rating and set a $50.80 target price for the company in a research report on Wednesday, July 29th. Finally, Berenberg Bank began coverage on AST SpaceMobile in a research report on Wednesday, September 2nd. They issued a “buy” rating and a $92.00 target price for the company. Five investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $80.18.

View Our Latest Report on AST SpaceMobile

AST SpaceMobile Price Performance

The business’s 50 day moving average is $58.78 and its two-hundred day moving average is $73.24. The firm has a market capitalization of $15.09 billion, a PE ratio of -18.12 and a beta of 2.72. The company has a debt-to-equity ratio of 1.24, a current ratio of 13.05 and a quick ratio of 12.90.

AST SpaceMobile (NASDAQ:ASTS – Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.32) by ($0.45). The company had revenue of $31.52 million for the quarter, compared to the consensus estimate of $34.53 million. AST SpaceMobile had a negative net margin of 536.66% and a negative return on equity of 22.88%. During the same period last year, the business posted ($0.41) earnings per share. As a group, research analysts anticipate that AST SpaceMobile, Inc. will post -1.92 EPS for the current year.

Insider Activity at AST SpaceMobile

In other AST SpaceMobile news, COO Shanti B. Gupta sold 12,000 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $58.89, for a total transaction of $706,680.00. Following the completion of the sale, the chief operating officer directly owned 462,980 shares in the company, valued at approximately $27,264,892.20. The trade was a 2.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Huiwen Yao sold 40,000 shares of the company’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $58.93, for a total value of $2,357,200.00. Following the sale, the chief technology officer owned 34,750 shares of the company’s stock, valued at approximately $2,047,817.50. This trade represents a 53.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.89% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Bank of America Corp DE boosted its holdings in shares of AST SpaceMobile by 140.3% in the 1st quarter. Bank of America Corp DE now owns 1,644,246 shares of the company’s stock worth $136,259,000 after purchasing an additional 960,045 shares during the period. First Trust Advisors LP lifted its holdings in AST SpaceMobile by 14.3% during the first quarter. First Trust Advisors LP now owns 1,316,852 shares of the company’s stock worth $109,128,000 after buying an additional 164,303 shares during the period. Tidal Investments LLC boosted its position in AST SpaceMobile by 9,876.8% during the 2nd quarter. Tidal Investments LLC now owns 1,049,061 shares of the company’s stock valued at $93,220,000 after acquiring an additional 1,038,546 shares in the last quarter. Tema ETFs LLC increased its position in shares of AST SpaceMobile by 109,486.8% during the second quarter. Tema ETFs LLC now owns 1,003,815 shares of the company’s stock worth $89,199,000 after purchasing an additional 1,002,899 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its stake in shares of AST SpaceMobile by 21.5% during the first quarter. Bank of New York Mellon Corp now owns 837,559 shares of the company’s stock worth $69,409,000 after acquiring an additional 148,464 shares during the last quarter. 60.95% of the stock is owned by hedge funds and other institutional investors.

AST SpaceMobile Company Profile

(Get Free Report)

AST SpaceMobile, Inc is a space-based communications company developing a global cellular broadband network designed to connect directly with standard, unmodified mobile phones. Its technology is intended to extend wireless coverage beyond traditional terrestrial networks, including in rural, remote and underserved areas.

The company is building and deploying a constellation of large low Earth orbit satellites, known as the BlueBird satellite system. AST SpaceMobile plans to provide voice, messaging, data and broadband services through partnerships with mobile network operators, allowing subscribers to remain connected outside the reach of conventional cellular towers.

Founded in 2017 and headquartered in Midland, Texas, AST SpaceMobile was established by Abel Avellan, who serves as its chairman and chief executive officer.

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