Ahead of AST SpaceMobile Earnings, Here's What Barchart Data Says Comes Next for ASTS Stock

AST SpaceMobile (ASTS) is heading into Q3 earnings with sentiment still bruised after a steep pullback from its earlier highs, but options traders appear to be positioning for a potential rebound. The satellite-to-cellphone connectivity company is set to report its quarterly results on Nov. 9, with the consensus calling for a loss of $0.41 per share — an 8.89% improvement from last year. 

Heading into the quarterly print, AST SpaceMobile stock is down more than 75% versus its year-to-date high.  

Where Options Data Suggests AST SpaceMobile Stock

One of the more interesting signals ahead of ASTS earnings is coming from the options market. 

Barchart data for contracts expiring Nov. 13 shows a put-to-call ratio of 0.78x, meaning call volume slightly outweighs bearish put positioning. A ratio below 1.00x is often interpreted as a sign that traders are leaning bullish. Data also pegs the upper expected price on those contracts at $35.51, indicating ASTS shares could rally over 17% within days after the earnings event. 

That said, AST SpaceMobile is still trading at a price-to-sales (P/S) multiple of nearly 200x, which makes it an expensive name to own by any stretch of the imagination. 

Technicals Warrant Caution in Playing ASTS Shares

Investors should also note that AST SpaceMobile shares are entering earnings with technical setup still flashing caution. The stock is currently trading below key moving averages (MAs), indicating the prevailing trend remains to the downside. 

Momentum indicators tell a similar story, with the relative strength index (RSI) sitting in the mid-20s, a level typically associated with oversold conditions. That creates an interesting tension going into the report. On one hand, weaker price action reflects investor concern and a lack of near-term buying conviction. On the other, oversold readings can leave a stock vulnerable to sharp relief rallies if results or guidance exceed expectations. 

All in all, the upcoming earnings release could play a key role in determining whether ASTS continues its downtrend or begins building a recovery from deeply oversold levels.

How Wall Street Recommends Playing AST SpaceMobile

Wall Street analysts remain bullish as ever heading into AST SpaceMobile’s earnings, though. 

The consensus rating on ASTS stock sits at “Moderate Buy” currently, with the mean price target of about $78 indicating potential upside of more than 150% from current levels. 

On the date of publication, Wajeeh Khan did not directly have a position 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.