AST SpaceMobile (NASDAQ:ASTS) Shares Rise 0.8% - Should You Consider Buying?

AST SpaceMobile, Inc. (NASDAQ:ASTS) saw its shares increase by 0.8% during trading on a recent Friday. The stock reached a peak of $21.88 before settling at $21.63. During midday trading, around 1,903,760 shares changed hands, which is a significant drop of 82% from the average volume of 10,528,790 shares. The stock had closed at $21.45 on the previous day.

Wall Street analysts have been weighing in on AST SpaceMobile. Notably, B. Riley recently raised its price target for the company from $26.00 to $36.00, maintaining a "buy" recommendation. Similarly, UBS Group adjusted their target from $13.00 to $30.00, also giving a "buy" rating. Deutsche Bank increased their price target from $22.00 to $63.00, while Scotiabank elevated their target from $28.00 to $45.90, designating the stock as a "sector outperform".

AST SpaceMobile's Performance Metrics

The company showcases solid financial metrics with a debt-to-equity ratio of 0.83, a current ratio of 6.38, and a quick ratio of 6.38. Additionally, it has a 50-day simple moving average of $26.13 and a two-hundred day simple moving average of $17.35. The market cap for AST SpaceMobile stands at approximately $5.95 billion, with a price-to-earnings ratio of -17.30 and a beta of 1.64.

In the most recent quarterly earnings report released on August 14, the company reported an earnings per share (EPS) of ($0.14), surpassing analysts' expectations of ($0.19) by $0.05. However, revenue for the quarter was $0.90 million, less than the consensus estimate of $2.00 million. Analysts predict that AST SpaceMobile will report an EPS of -0.88 for the current fiscal year.

Insider Transactions

In recent insider activity, Director Adriana Cisneros purchased 4,934 shares at an average price of $26.32, totaling around $129,862.88. After this purchase, she owns 774,772 shares valued at approximately $20.39 million. In contrast, President Scott Wisniewski sold 2,700 shares at an average price of $23.12, resulting in a total of $62,424.00. Despite this sale, he still holds 712,660 shares valued around $16.48 million. Over the last 90 days, insiders sold a total of 127,700 shares worth $3,220,524, and currently, insiders own about 41.80% of the company’s stock.

Hedge Fund Movements

Several hedge funds have altered their positions in AST SpaceMobile recently. Notable transactions include New Millennium Group LLC acquiring a stake valued at around $110,000, while SouthState Corp invested approximately $799,000. Swiss National Bank purchased a position valued at $6.91 million, and KBC Group NV acquired shares worth about $104,000. Oppenheimer & Co. Inc. increased its stake by 6.0%, holding a total of 846,072 shares after adding 47,600 shares in the last quarter. Institutional investors currently own 60.95% of AST SpaceMobile's stock.

Company Overview

AST SpaceMobile, Inc. and its subsidiaries are engaged in developing and providing access to a space-based cellular broadband network for smartphones within the United States. Their SpaceMobile service aims to offer cellular broadband to users in areas without terrestrial signal coverage. Founded in 2017, AST SpaceMobile is headquartered in Midland, Texas.

Conclusion

In conclusion, despite the stock's recent performance amidst analyst upgrades and insider activities, potential investors should assess their options carefully. While AST SpaceMobile holds a "buy" rating from various research firms, some analysts suggest there may be alternative investments that could yield better returns.

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