AST SpaceMobile sold new stock in a direct offering last week.
The stock has recently seen a rise in short interest.
AST has big growth potential but trades at a heavily forward-looking valuation.
AST SpaceMobile (NASDAQ: ASTS) stock sank in Monday’s trading. The satellite communications company’s share price fell 11.4% in a session that saw the S&P 500 rise 0.1% and the Nasdaq Composite gain 0.4%.
AST’s valuation moved lower today in response to financing news published at the end of last week and profit taking in light of valuation concerns. Even with today’s pullback, the stock is up roughly 237% in 2025.
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AST published a 13D filing with the Securities and Exchange Commission (SEC) after the market closed on Friday. The filing outlined holdings owned by Abel Avellan — in line with disclosure requirements for individual investors and companies that own 5% or more of a company’s voting shares.
The filing also disclosed that the company had completed a registered direct offering of 2,048,849 shares of common stock on Oct. 29, with the proceeds being used to repurchase $50 million in outstanding 4.25% convertible senior notes set to mature in 2032. Bears have been raising stock dilution as a factor that could disrupt AST’s rally, and it appears to have played a significant role in today’s pullback.
On the heels of the company’s incredible run, investors are now showing an uptick in valuation skepticism with AST stock. Over the weekend, Ortex published an update on AST stock’s short interest. While the stock sank to a multiyear low of 16% last week, short interest ticked up to 19.8% — its highest level in roughly a month.
With today’s pullback, AST is now valued at approximately $19.4 billion and trades at roughly 325 times this year’s expected sales. While the company has a potentially massive runway for long-term expansion, its highly growth-dependent valuation means that shares come with a high propensity for volatility.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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