TLDR
- AST SpaceMobile stock hit a new 52-week high of $120.93 before closing at $109.61 on heavy trading volume of 5.45 million shares.
- Clear Street raised its price target to $137 from $87, citing competitive pressure from Starlink pushing mobile operators toward AST partnerships.
- The company posted disappointing Q3 earnings with EPS of ($0.45) missing estimates by ($0.27) and revenue of $14.74 million falling short of the $22.04 million forecast.
- Analysts remain skeptical with a consensus “Reduce” rating and average price target of $45.66, despite mixed ratings ranging from Buy to Sell.
- Insiders sold approximately 2.35 million shares last quarter while the company operates with a negative net margin of 1,639.59%.
AST SpaceMobile shares climbed to a fresh 52-week peak on Wednesday, reaching $120.93 intraday. The stock closed at $109.61 after heavy trading activity.
Volume spiked to 5.45 million shares, well above typical levels. The previous close stood at $112.44, meaning shares pulled back slightly from the day’s high.
The rally comes as Clear Street lifted its price target to $137 from $87. The firm maintained its Buy rating on the space-based cellular communications company.
Clear Street’s bullish stance centers on competition in the direct-to-cellular market. Analysts believe Starlink’s growing presence will force mobile network operators to strengthen partnerships with AST SpaceMobile to retain customers.
The firm extended its valuation timeline to 2029 for shares. This longer-term view suggests confidence in the company’s business model despite current losses.
Mixed Signals from Wall Street
The analyst community remains divided on AST SpaceMobile’s prospects. Three analysts rate the stock a Buy, five recommend Hold, and four suggest Sell.
The consensus rating sits at “Reduce” with an average price target of $45.66. That target sits roughly 58% below the current trading price.
Barclays downgraded shares from Overweight to Underweight in October, setting a $60 price objective. B. Riley shifted from Buy to Neutral on January 13th.
Weiss Ratings issued a Sell rating in late December. Zacks Research downgraded the stock to Strong Sell on January 9th.
Deutsche Bank maintained its Buy rating as recently as this week. The conflicting analyst opinions reflect uncertainty about the company’s path to profitability.
Recent Financial Performance Disappoints
AST SpaceMobile reported third-quarter results on November 10th. Earnings per share came in at ($0.45), missing the consensus estimate of ($0.18) by ($0.27).
Revenue totaled $14.74 million for the quarter. Analysts had expected $22.04 million in sales.
The company posted a negative net margin of 1,639.59%. Return on equity registered at negative 27.76%.
Year-over-year revenue growth reached 1,236.4% compared to the same quarter in 2024. This growth reflects the early-stage nature of the business.
Analysts forecast AST SpaceMobile will post ($0.40) EPS for the full current year. The company carries a market cap of $36.34 billion.
The stock trades at a price-to-earnings ratio of negative 79.85. Its beta of 2.70 indicates high volatility relative to the broader market.
The 50-day moving average sits at $75.05, while the 200-day moving average rests at $63.71. Both technical indicators show the stock trading well above recent trends.
The company maintains a quick ratio of 9.48 and current ratio of 9.56. Its debt-to-equity ratio stands at 0.43.
Insider Selling Activity
Company insiders sold substantial positions in recent months. CAO Maya Bernal sold 6,000 shares on December 5th at an average price of $73.76 for total proceeds of $442,560.
After the sale, Bernal held 122,486 shares valued at $9,034,567. The transaction represented a 4.67% decrease in her stake.
CFO Andrew Martin Johnson sold 10,000 shares on November 26th. The shares sold at an average price of $56 for total value of $560,000.
Following that transaction, Johnson owned 387,485 shares worth approximately $21,699,160. This marked a 2.52% reduction in his holdings.
During the last quarter, insiders purchased 2,765 shares worth $187,236. They sold 2,354,621 shares valued at $164,348,075.
Company insiders currently own 30.90% of the stock. Institutional investors hold 60.95% of shares.
Hedge funds adjusted their positions in recent quarters. State Board of Administration of Florida Retirement System increased its stake by 342.2% in Q2, now holding 132,087 shares valued at $6,172,000.
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