AST SpaceMobile, Inc. (NASDAQ:ASTS) stock extended Wednesday’s losses, falling more than 10% in Thursday’s premarket trading after the company priced a $1 billion convertible senior notes offering.
Investors remained focused on the potential dilution from the financing despite the capital supporting the company’s long-term growth plans.
AST SpaceMobile Prices $1 Billion Convertible Notes Offering
On Wednesday, AST SpaceMobile priced a $1 billion private offering of 1.625% convertible senior notes due 2034, with net proceeds of about $983.6 million expected to fund network expansion, additional launch access and potential partnerships or acquisitions.
The notes carry an initial conversion price of about $79.57 per share, while capped call transactions with a $149.20 cap price are designed to reduce potential shareholder dilution.
Technical Analysis
AST SpaceMobile remains below all of its major moving averages, keeping the long-term technical outlook bearish unless the stock can reclaim those levels.
At $60.00, the stock is 21.8% below its 20-day simple moving average of $76.30, 30.2% below its 50-day SMA of $85.94 and 27.8% below its 200-day SMA of $83.15.
The moving-average setup also remains weak. The 20-day SMA sits below the 50-day SMA, reinforcing the short-term downtrend. However, the 50-day SMA remains above the 200-day SMA, suggesting the longer-term uptrend has weakened but has not completely broken.
Momentum indicators also favor the bears. The MACD remains below its signal line, while the histogram is negative, indicating that upside momentum continues to fade.
The stock is also trading in a lower-high, lower-low pattern after reaching its 52-week high of $133.86 in May. The 52-week low stands at $36.08, set in September 2025.
The next key support level is around $49.50, an area where buyers previously stepped in.
ETF Exposure
AST SpaceMobile is held by several exchange-traded funds, including:
- Goldman Sachs Equal Weight US Large Cap Equity ETF (BATS:GSEW): 0.27% Weight
- First Trust US Equity Opportunities ETF (NYSE:FPX): 4.45% Weight
- Defiance Space and Connective Tech ETF (NASDAQ:UFOX): 2.96% Weight
Large inflows or outflows in these funds could create additional buying or selling pressure for the stock.
ASTS Stock Price Activity: AST SpaceMobile shares were down 9.52% at $60.00 during premarket trading on Thursday, according to Benzinga Pro data.
Image via Shutterstock
Login to comment