TLDR
- AST SpaceMobile announced an $800 million at-the-market equity offering through a SEC filing on Tuesday
- The stock traded over 4% lower following the announcement but retail investors on Stocktwits remained extremely bullish
- Scotiabank downgraded ASTS to Underperform from Sector Perform, maintaining a $42.90 price target and warning of a valuation bubble
- The company can sell shares through multiple methods on Nasdaq over three years, with financial agents receiving 3% compensation
- ASTS stock has gained 233% in 2025 and over 182% in the past 12 months
AST SpaceMobile filed paperwork with the Securities and Exchange Commission on Tuesday announcing an $800 million at-the-market equity offering. The satellite communications company laid out plans to sell Class A common stock through a group of major investment banks.
The agreement names nine financial agents who will handle the offering. These include B. Riley Securities, Barclays Capital, BofA Securities, Cantor Fitzgerald, Deutsche Bank Securities, Roth Capital Partners, Scotia Capital, UBS Securities, William Blair, and Yorkville Securities.
Under the terms, AST SpaceMobile can sell shares using any method that qualifies as an at-the-market offering under the Securities Act. This includes direct sales on Nasdaq, trades through market makers, negotiated transactions, or other legal methods.
The agents will receive 3% of sales as compensation. The agreement runs for three years.
AST SpaceMobile isn’t required to sell all shares at once. The company also doesn’t have to sell the full $800 million amount listed in the agreement.
The filing states funds will go toward general corporate purposes. Management will retain broad discretion over how the net proceeds are allocated.
Market Reaction and Retail Sentiment
ASTS stock traded over 4% lower on Tuesday following the announcement. Despite the drop, retail investors showed a different mood.
The stock saw a 482% increase in user message count over the same period. One user posted about buying the dip at the lower price.
Another investor expressed positive views about the offering. They suggested someone might want the company to complete its satellite constellation quickly.
Analyst Downgrade
Scotiabank downgraded the stock on Tuesday to Underperform from Sector Perform. The firm kept its price target at $42.90.
The bank cited concerns about current valuation and long-term competitive risks. Scotiabank pointed to what it called a valuation bubble.
The firm noted ASTS stock had doubled over the past month. Scotiabank warned such rapid price increases often lead to painful corrections.
The bank highlighted competitive pressures from SpaceX’s Starlink service. Analysts said delays in launching AST’s satellite-based broadband services could strengthen Starlink’s position and draw away potential clients.
Wall Street analysts give ASTS a Moderate Buy consensus rating. This is based on four Buy and four Hold ratings over the past three months.
The average price target sits at $53.70. This represents a potential 24.96% downside from current levels.
Trading volume on Tuesday reached about 3 million shares. This compares to a three-month daily average of roughly 11.87 million shares.
AST SpaceMobile stock has gained 233% in 2025. The shares are up over 182% in the last 12 months.
