AST SpaceMobile (NASDAQ:ASTS) shares are up on Wednesday following the Federal Communications Commission’s (FCC) approval for the company to operate its SpaceMobile non-geostationary orbit satellite system.

This news comes as the broader market is experiencing gains, with the S&P 500 up 0.8% and the Communication Services sector gaining 0.6%.

Details

The FCC has granted AST SpaceMobile authorization to deploy and operate a constellation of up to 248 satellites. It will enable direct-to-device cellular broadband coverage using low-band spectrum.

The system will deliver direct-to-smartphone connectivity using 700 MHz and 800 MHz spectrum, in partnership with Verizon, AT&T, and FirstNet.

This approval supports the company’s efforts to enhance network resilience and provide critical communications services across the United States, further validating its innovative technology.

BlueBird 7 Satellite Launch Trouble

Recently, the company said its BlueBird 7 satellite, launched aboard the New Glenn launch vehicle, was placed into a lower-than-planned orbit during the New Glenn 3 mission.

Although the satellite separated and powered on, the altitude is too low for sustained operations, and it will be de-orbited. The company expects to recover the satellite’s cost through insurance.

Technical Analysis

The broader market saw gains, with the Technology sector up 1.47% today. ASTS’s rise aligns with this positive trend, indicating that the stock is moving in tandem with broader market dynamics.

AST SpaceMobile is currently trading 3.3% below its 20-day simple moving average (SMA) and 3.7% below its 50-day SMA, suggesting a short-term bearish trend. However, the stock is trading 17.4% above its 200-day SMA, indicating a stronger long-term bullish sentiment.

The relative strength index (RSI) is at 41.88, which is considered neutral, suggesting that the stock is neither overbought nor oversold at this time. This positioning indicates that there may be potential for upward momentum if buying interest increases.

  • Key Resistance: $97.50 — A significant level where selling pressure may emerge.
  • Key Support: $84.00 — A level that could provide buying interest if tested.

AST SpaceMobile has shown a remarkable 12-month performance, with a return of 303.36%. This significant gain reflects strong investor interest and confidence in the company’s long-term growth potential as it develops its satellite network.

Sector Performance

AST SpaceMobile is outperforming its sector, the Communication Services sector, which is currently ranked 8 out of 11 sectors with a gain of 0.59%. The stock’s performance today, up 7.37%, indicates a strong response to the FCC approval, significantly exceeding the sector’s movement.

Over the past 30 days, the Communication Services sector has gained 4.55%, while ASTS’s recent surge suggests that it is leading sector gains. This performance highlights the company’s potential to capitalize on its unique position within the market.

Analyst Outlook

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $75.52. Recent analyst moves include:

  • Barclays: Underweight (Raises Target to $65.00) (April 9)
  • UBS: Neutral (Raises Target to $85.00) (March 4)
  • B. Riley Securities: Neutral (Lowers Target to $95.00) (Feb. 13)

Top ETF Exposure

  • First Trust Indxx Aerospace & Defense ETF (NYSE:MISL): 4.08% Weight
  • Procure Space ETF (NASDAQ:UFO): 5.36% Weight
  • First Trust US Equity Opportunities ETF (NYSE:FPX): 3.11% Weight

Significance: Because ASTS carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

ASTS Stock Price Activity: AST SpaceMobile shares were up 7.21% at $85.78 at the time of publication on Wednesday, according to Benzinga Pro data.

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