AST SpaceMobile Stock Is Rising Thursday: What's Fueling The Move?

AST SpaceMobile Inc (NASDAQ:ASTS) shares are trading higher Thursday morning after the satellite-communications company landed a roughly $30 million prime contract earlier this week with the U.S. Space Development Agency for the Europa Track 2 Commercial Solutions program, part of the HALO low-Earth-orbit initiative.

Here’s what investors need to know.

• AST SpaceMobile shares are climbing with conviction. What’s driving ASTS stock higher?

Stock Jumps On Pentagon Contract

The deal is the first prime award for its wholly owned defense arm, AST SpaceMobile USA, highlighting growing government demand for commercial space-based connectivity.

The deal positions AST SpaceMobile as a direct supplier to U.S. defense customers while Washington prioritizes resilient, low-latency communications across the Proliferated Warfighter Space Architecture.

The stock's move higher also follows the company's inclusion on the Pentagon's SHIELD vendor list, opening a pathway to compete for pieces of a multibillion-dollar layered missile-defense program.

BlueBird Satellites Target Defense Customers

Under the SDA contract, AST SpaceMobile will use its dual-use BlueBird satellite constellation to demonstrate secure links connecting government end-user devices directly to satellites.

The company's software-defined "bent-pipe" architecture is designed to move high-bandwidth data from orbit and interface with existing tactical radios in the field.

Award Expands ASTS Government Opportunities

Management says the contract strengthens AST SpaceMobile's role as a trusted partner to U.S. defense agencies while advancing its plan to build what it calls the first space-based cellular broadband network designed to work with standard mobile phones.

A successful demonstration could pave the way for larger defense and commercial awards and keep ASTS shares in focus.

Earnings Arrive Next Week

The countdown is on: AST SpaceMobile is set to report earnings on March 2.

• EPS Estimate: Loss of 19 cents (Up from Loss of 18 cents)
• Revenue Estimate: $41.21 million (Up from $1.92 million)

ASTS Shows Mixed Technical Signals

Currently, the stock is trading 13.4% below its 20-day simple moving average (SMA) but is 7.5% above its 100-day SMA, indicating a mixed short-term trend while maintaining longer-term strength.

Over the past 12 months, shares have skyrocketed by 202.54%, and they are currently positioned closer to their 52-week highs than lows.

Average Price Target Near $60

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $59.83. Recent analyst moves include:

• B. Riley Securities: Neutral (Lowers Target to $95.00) (Feb. 13)
• B. Riley Securities: Downgraded to Neutral (Raises Target to $105.00) (Jan. 13)
• Scotiabank: Downgraded to Sector Underperform (Target $45.60) (Jan. 7)

ASTS Shares Gain Thursday

ASTS Price Action: AST SpaceMobile shares were up 3.70% at $85.41 at the time of publication on Thursday, according to Benzinga Pro data.

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