TLDR
- ASTS stock dropped 6% to $56.93 on Thursday, trading well above its average daily volume.
- A new securities class action lawsuit accuses the company of understating its cash needs and liquidity risks.
- Wall Street rates the stock a Hold with an average price target of $84.58, down from recent highs.
- The company missed both revenue and EPS estimates last quarter and continues to post heavy losses.
- Despite the drop, ASTS has logged wins this week, including a successful satellite-to-smartphone test in Canada.
AST SpaceMobile stock fell 6% on Thursday, closing out the session at $56.93. The drop came on volume of nearly 17.8 million stock, about 8% above the daily average. Shares had opened the day at $60.65.
The sell-off followed news of a freshly filed securities class action lawsuit. The suit covers investors who bought ASTS stock between March 2025 and July 2026.
The claims center on disclosure. Plaintiffs allege the company failed to properly warn investors about user-adoption risks and the dilution tied to three separate $1 billion convertible note offerings.
None of the allegations have been proven in court. The lead-plaintiff deadline for the case is set for November 13, 2026.
The timing didn’t help matters. Broader satellite-sector jitters, stirred up by reports of a large debt deal at SpaceX, added extra pressure to an already shaky session for space stock.
Wall Street Still Split on the Stock
Analyst opinion remains divided. Of the firms covering ASTS, five rate it a Buy, seven call it a Hold, and two have it at Sell.
B. Riley Financial cut its rating from Buy to Neutral this month and trimmed its price target to $65 from $85. Berenberg Bank, on the other hand, started coverage with a Buy rating and a $92 target.
Piper Sandler sits at Overweight with a $98 target. Scotiabank recently moved its rating up to Sector Perform with an $50.80 target, a sign some analysts see less downside than before.
The average price target across the Street sits at $84.58. That’s a wide gap above the current trading price.
Cash Burn Remains the Core Concern
Money is the sticking point for skeptics. AST SpaceMobile posted a loss of $0.77 per share last quarter, far worse than the $0.32 loss analysts had penciled in.
Revenue also came in light, at $31.52 million versus the $34.53 million expected. Net margin for the quarter landed at a negative 536.66%.
Wall Street projects the company could burn through roughly $3.2 billion in cash before 2029. That’s the kind of number that keeps dilution fears alive among current stockholders.
Insider activity has been mixed lately. Chief Technology Officer Huiwen Yao sold 40,000 stock in September at an average price of $58.93, trimming his position by more than half.
Director Adriana Cisneros went the other direction, buying 10,822 stock in late August at $57.22 each. Insiders overall hold about 21% of the company.
Not everything this week has been negative. AST SpaceMobile and TELUS completed a direct-to-smartphone satellite test in Canada using regular phones, a step toward the company’s goal of covering remote areas without special hardware.
The company also got a mention in a U.S.-Japan technology initiative. Its multi-launch deal with Blue Origin could also matter if New Glenn returns to flight on schedule.
A competing satellite firm cleared a regulatory hurdle this week too, adding to competitive concerns for ASTS. The company’s model leans heavily on wireless carrier partnerships and regulatory sign-off, so rival progress tends to draw attention.
Institutional buying has stayed strong despite the volatility. Bank of America Corp DE increased its stake by over 140% in the first quarter, and Tidal Investments LLC grew its position by nearly 9,877% in the second quarter.
Roughly 61% of AST SpaceMobile stock is now held by institutions and hedge funds. The stock trades with a 50-day moving average of $63.10 and a 200-day moving average of $76.08, with a market cap near $22.16 billion.
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