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

AST SpaceMobile, Inc. (NASDAQ:ASTS) saw its shares increase by 0.8% during trading on Friday. The stock peaked at $21.88 and was last seen at $21.63. There were 1,903,760 shares traded during the day, which is a significant drop of 82% compared to the average trading volume of 10,528,790 shares. Previously, the stock closed at $21.45.

Wall Street Analysts Share Insights

Several financial research firms have provided updates on AST SpaceMobile. B. Riley recently raised their price target from $26.00 to $36.00, maintaining a "buy" rating for the stock in a report dated August 29. Similarly, UBS Group adjusted their target price from $13.00 to $30.00, also giving it a "buy" rating on August 15. Deutsche Bank increased their price objective from $22.00 to $63.00, highlighting a "buy" rating in their report on September 4. Furthermore, Scotiabank raised their target price from $28.00 to $45.90, recommending a "sector outperform" rating on August 26.

Company Financial Overview

AST SpaceMobile has been experiencing notable trading activity, with its stock values varying significantly. As of now, the company has a debt-to-equity ratio of 0.83, alongside a current ratio and quick ratio of 6.38. The stock has a 50-day simple moving average of $26.13 and a 200-day moving average of $17.35. Its market capitalization stands at $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, AST SpaceMobile disclosed an earnings per share (EPS) of ($0.14), which exceeded the analysts' expectations of ($0.19) by $0.05. The reported revenue for the quarter was $0.90 million, below the consensus estimate of $2.00 million. Analysts anticipate that AST SpaceMobile’s EPS for the current fiscal year will be around -0.88.

Insider Trading Activity

In terms of insider trading, Director Adriana Cisneros purchased 4,934 shares of AST SpaceMobile on September 6 at an average price of $26.32 per share, totaling approximately $129,862.88. Post-transaction, Cisneros now holds 774,772 shares valued at about $20,391,999.04. Additionally, President Scott Wisniewski sold 2,700 shares on September 30 at an average price of $23.12, resulting in a total transaction of $62,424.00. After this sale, Wisniewski retains 712,660 shares worth around $16,476,699.20.

Hedge Fund Activity

Regarding institutional investments, hedge funds have been adjusting their positions in AST SpaceMobile. New Millennium Group LLC entered a new position valued at roughly $110,000 during the third quarter. SouthState Corp also acquired new shares worth about $799,000. The Swiss National Bank added a position valued at approximately $6,911,000, while KBC Group NV bought in for around $104,000. Oppenheimer & Co. Inc. increased their stake by 6.0%, now owning 846,072 shares valued at $22,125,000 after acquiring an additional 47,600 shares. Overall, institutional investors hold approximately 60.95% of AST SpaceMobile's stock.

A Brief Introduction to AST SpaceMobile

AST SpaceMobile, Inc., along with its subsidiaries, is engaged in developing and providing a space-based cellular broadband network designed for smartphones within the United States. Their SpaceMobile service aims to offer cellular broadband solutions to users who are currently outside terrestrial cellular coverage. Founded in 2017, the company's headquarters is located in Midland, Texas.

Final Considerations

Before investing in AST SpaceMobile, it's advisable to research and consider various factors. While analysts currently give the stock a "buy" rating, some experts believe there are more attractive investment options available. Therefore, thorough diligence is recommended.

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