Heavily Shorted Satellite Stock Gearing Up for Earnings

AST SpaceMobile Inc (NASDAQ:ASTS) is scheduled to report second-quarter earnings after the close on Monday, Aug. 10. According to Zacks Research, analysts expect a loss of $0.28 per share on revenue of $34.13 million, representing a 31.7% year-over-year improvement in earnings alongside a 2,842.2% surge in revenue. Investors will be watching for updates on the company's direct-to-device satellite network rollout, commercial partnerships, and revenue outlook.

At last glance, ASTS was up 1% at $69.04. The stock lost over 50% from its May 28 record high of $133.86 and is now attempting to reclaim the 320-day moving average. Year to date, the equity is up 5%. 

Options traders are pricing in a 14.5% post-earnings move, regardless of direction, which is higher than AST SpaceMobile stock's average post-earnings swing of 12.7% over the last eight quarters. The shares have been especially volatile after their two most recent reports, which included an 11.6% drop in May and a 6.6% gain in March. 

Wall Street remains cautious heading into the event. Of the 14 brokerages covering AST SpaceMobile, five carry a "strong buy" rating, while eight maintain "hold" recommendations and one rates the stock a "strong sell."

Short interest is also elevated, with 21.6% of the stock's available float sold short. At ASTS' average daily trading volume, it would take short sellers 2.67 days to buy back their bearish bets.