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ASTS Stock Adds 14.97%, As Surge in Call Options Continues

Analyst Team trader
Updated 18 Jun 2024

AST SpaceMobile stock (NASDAQ: ASTS) added 14.97% on Monday, bringing the monthly gain to 122.54%. The stock has experienced an unusually high volume of trading in call options, with participants snapping up 29,898 call options on the company, indicating a notable surge of 125 percent compared to the stock's average volume. This significant interest in call options suggests a bullish sentiment among investors regarding the future of AST SpaceMobile.

Currently, the company stands with a market capitalisation of $3.03 billion, despite having a negative price-to-earnings ratio of -11.20 and maintaining a beta of 1.54, reflecting greater volatility compared to the market.

Financial Results and Analyst Opinions

AST SpaceMobile recently reported its earnings for the last quarter, disclosing a loss of ($0.16) per share. However, this outperformed analysts' consensus estimates by $0.02. The firm also reported modest revenue, generating $0.50 million for the quarter.

Analysts from renowned financial institutions like Deutsche Bank, UBS Group, and Scotiabank have offered varying price targets for AST SpaceMobile's stock, standing at $19.00, $13.00, and $12.90, respectively. Such diversity in price targets reflects the range of expectations for the company's future performance.

Institutional Investors' Stake Changes

The company has been witnessing changes in its shareholder base, with prominent institutional investors adjusting their stakes. Janus Henderson Group PLC and Vanguard Group Inc. have notably augmented their positions in AST SpaceMobile, showcasing confidence in the company's prospects.

AST SpaceMobile is pioneering in the development of a space-based cellular broadband network for smartphones within the United States. Focused on providing cellular services to areas devoid of terrestrial coverage, the company positions itself as a pivotal player in expanding broadband access.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The heightened options activity and positive stock price movement reflect a robust market reaction, which may be tied to both the company's recent financial results and its strategic positioning in the cellular broadband industry. Options trading requires significant learning and is not one for beginners to try their hands at without doing proper diligence. Whilst this remains the case, watching the options market for clues on what is happening in a stock can provide valuable insight.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.