WealthPlan Investment Management LLC has significantly increased its investment in AST SpaceMobile, Inc. (NASDAQ: ASTS) during the second quarter of 2023. According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the firm acquired 51,658 shares, valued at approximately $2.41 million. This marks a notable addition to the growing interest from institutional investors in the innovative satellite communications company.
Several other institutional investors have also adjusted their positions in AST SpaceMobile. Sage Advisors LLC entered the market with a new position valued at around $347,000 during the same period. Additionally, Moran Wealth Management LLC increased its holding by 38.7%, bringing its total to 58,300 shares worth approximately $2.72 million after purchasing an extra 16,259 shares. CWM LLC also expanded its stake by 77.9%, now owning 1,350 shares valued at $63,000.
Vanguard Personalized Indexing Management LLC acquired a new position worth about $558,000, while Waypoint Wealth Counsel grew its holdings by 3.5%, now holding 16,746 shares valued at approximately $783,000. Currently, institutional investors and hedge funds collectively own 60.95% of AST SpaceMobile’s stock.
Analysts’ Ratings and Price Performance
AST SpaceMobile has attracted attention from various Wall Street analysts. Bank of America initiated coverage on June 25, 2023, issuing a “neutral” rating with a price target of $55.00. In contrast, Scotiabank downgraded the stock from “sector perform” to “sector underperform,” setting a target price of $42.90. Barclays raised its price target from $37.00 to $60.00 and assigned an “overweight” rating. William Blair also began coverage, giving the company a “market perform” rating.
Overall, four analysts rated the stock as a “buy,” five as “hold,” and two as “sell,” leading to an average rating of “hold” with a consensus target price of $45.27.
As of Thursday, AST SpaceMobile shares opened at $95.69 with a market capitalization of $34.31 billion. The company has a price-to-earnings (P/E) ratio of -50.63 and a beta of 2.41. Its twelve-month performance shows a low of $17.50 and a high of $99.82, with a 50-day moving average of $53.32 and a 200-day moving average of $41.40.
In its latest earnings report on August 11, 2023, AST SpaceMobile reported an earnings per share (EPS) of ($0.41), missing analysts’ expectations by $0.22. The company generated $1.16 million in revenue, significantly below the anticipated $6.37 million. The negative net margin stood at 7,213.90%, with a return on equity of -26.81%. Analysts predict that AST SpaceMobile will post an EPS of ($0.40) for the current fiscal year.
Insider Activity and Corporate Overview
Recent insider trading activity includes significant sales by key executives. Chief Technology Officer Huiwen Yao sold 40,000 shares on September 16, 2023, at an average price of $40.58, totaling $1.62 million. Following this transaction, Yao retained 4,750 shares, marking an 89.39% reduction in their position. Chief Financial Officer Andrew Martin Johnson sold 20,000 shares on August 26, 2023, for an average price of $52.48, amounting to $1.05 million. Johnson’s remaining shares total 397,485 shares, valued at approximately $20.86 million.
Currently, corporate insiders own 34.15% of AST SpaceMobile’s stock.
AST SpaceMobile, headquartered in Midland, Texas, develops satellite-based cellular broadband networks for smartphones, aiming to provide connectivity for users beyond traditional cellular coverage. Founded in 2017, the company is positioning itself to make significant contributions to global telecommunications.
As institutional investment increases and analysts continue to evaluate its performance, AST SpaceMobile remains a focal point for those monitoring developments in the satellite communications sector.
