ASTS Stock Alert: What to Know as Takeover Speculation Swirls Around AST SpaceMobile

AST SpaceMobile (ASTS) remains in focus as its latest SEC disclosure detailing new executive change-of-control severance plans sparked widespread takeover rumors. The subsequent rally saw ASTS briefly trading above its 20-day moving average (MA), indicating bulls are attempting to take back control in the near term. 

Despite today’s surge, AST SpaceMobile stock is trading at less than half its price in late May. 

What the Takeover Rumors Mean for AST SpaceMobile Stock

AST SpaceMobile’s recent regulatory filings established an updated change-of-control payout structure for its CEO and senior executive leadership. 

Retail trading platforms quickly interpreted these defensive measures as a signal that the company may be positioning itself for a potential acquisition or a strategic buyout. 

While a change-of-control policy often requires both a corporate merger and a qualifying executive departure to trigger payouts, traders immediately bid up ASTS shares on M&A rumors today. 

In short, today’s price action is purely speculative since the said change does not confirm that AST SpaceMobile is currently in active discussions over a potential deal. 

Where Options Data Suggests ASTS Shares Are Headed

Even beyond buyout rumors, the derivatives market believes AST SpaceMobile shares are poised for continued gains in the near term. 

According to Barchart, the put-to-call ratio on options contracts expiring mid-October sits at 0.26x as of writing, indicating a strong bullish skew. 

Data also pegs the upper price on those contracts at $68.48, indicating potential for another 11% rally over the next two weeks. 

That said, ASTS remains rather unattractive for value-conscious investors. Its price-to-sales (P/S) multiple sits at nearly 335x currently, which makes it an expensive stock to own by any stretch of the imagination. 

And it’s not like the satellite direct-to-cell phone operator pays a healthy dividend to offset some of the valuation risks either. 

How Wall Street Recommends Playing AST SpaceMobile

On the flip side, Wall Street analysts recommend looking beyond valuation concerns and owning ASTS stock for the long term. 

According to Barchart, the consensus rating on AST SpaceMobile remains at “Moderate Buy,” with the mean price target of about $84 indicating potential upside of nearly 40% over the next 12 months.  

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.