Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS) are rising Thursday. Here’s why the Texas-based satellite and cellular broadband company’s stock is trending.
What To Know: Later this month, AST SpaceMobile will launch the largest commercial communications array ever deployed in low earth orbit. The launch will be out of India and is part of the company’s goal of 45 to 60 satellites in orbit by the end of next year. To reach this goal, the company is also accelerating production with 40 satellites equivalent of microns, which are components of satellites, on track to be completed by early next year.
AST SpaceMobile is also adding two new manufacturing sites: one in Texas and the other in Florida. The company now has five facilities in Texas, including one in Midland where it builds satellites for broadband communications in low Earth orbit. The new facility in Florida will increase overall production capacity.
AST SpaceMobile’s partners include AT&T, Verizon, American Tower and Google, and all of the company’s major manufacturing processes are based in the U.S. Last month, the company said it secured over $1 billion in aggregate contracted revenue commitments from partners.
"As we accelerate production of our next-generation BlueBird satellites, the expansion allows us to increase capacity, strengthen our supply chain, and bring even more high-technology manufacturing work back to the United States,” said Abel Avellan, CEO of AST SpaceMobile.
Next week, the company’s president Scott Wisniewski will participate in a fireside chat at the UBS Global Media and Communications Conference in New York.
Analyst consensus has the stock at a buy rating with a consensus price target of $59.83.
ASTS Analysis: AST SpaceMobile stock is showing strong bullish momentum, currently trading 22.6% above its 20-day SMA and 66% above its 200-day SMA. This positioning indicates significant strength in the stock, especially considering its impressive 12-month performance of 224.03%.
The RSI is currently at 50.34, signaling a neutral stance, which suggests that the stock isn’t overbought or oversold at this moment. The MACD is slightly below its signal line, while key support at $66.50 and resistance at $84.00 will be crucial for traders to watch; a breach of these levels could signal a trend change or continuation.
Over the last three months, ASTS has surged nearly 80%, reflecting strong investor interest and positive sentiment. The six-month performance of over 110% further emphasizes the stock’s robust trend, while the 12-month gain of 224% showcases its significant long-term growth potential.
Traders should closely monitor the support level at $66.50; if tested and held, it could provide a solid base for further upside. Conversely, if the stock breaks below this level, it may indicate a shift in momentum and warrant caution.
Overall, ASTS is in a strong technical position, but traders must remain vigilant around key support and resistance levels to navigate potential volatility effectively. The current setup suggests that if momentum continues, the stock could challenge its resistance at $84.00 in the near term.
ASTS Price Action: AST SpaceMobile shares were up 18.60% and trading at $72.87, according to Benzinga Pro.
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