AST SpaceMobile (ASTS) stock slid on Tuesday after the satellite communications company announced an Equity Distribution Agreement through several financial agents. This will allow the company to conduct at-the-market offerings for up to $800 million worth of ASTS stock. The agreements will last for three years, and agents will receive 3% of the sales as compensation.
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AST SpaceMobile named a large number of financial agents in its Equity Distribution Agreement, including B. Riley Securities, Inc., Barclays Capital Inc., BofA Securities, Cantor Fitzgerald, Deutsche Bank Securities, Roth Capital Partners, Scotia Capital, UBS Securities, William Blair, and Yorkville Securities. AST SpaceMobile isn’t required to sell shares all at once and doesn’t have to sell the full amount listed in the Equity Distribution Agreement.
AST SpaceMobile also included its plans for funds raised through this Equity Distribution Agreement. The company said the money will be used for general corporate purposes and that its management team will “retain broad discretion over the allocation of the net proceeds from the sale of the shares.”
AST SpaceMobile Stock Movement Today
AST SpaceMobile stock was down 2.06% on Tuesday but remained up 237.68% year-to-date. Investors will also note that the company’s shares have rallied 201.24% over the past 12 months. Trading activity today has some 3 million units on the move, compared to a three-month daily average of about 11.87 million shares.
Is AST SpaceMobile Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AST SpaceMobile is Moderate Buy, based on four Buy and four Hold ratings over the past three months. With that comes an average ASTS stock price target of $53.70, representing a potential 24.96% downside for the shares.
