Satellite Stock 'Buy' Signal Could Mean More Gains
Quick Take
A new 'buy' signal for satellite stocks suggests potential for further gains.
Key Points
- Analysts recommend buying satellite stocks now.
- Market trends indicate upward momentum.
- Investors may see significant returns soon.
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~1 min readEmma Duncan
1 min read
AST SpaceMobile Inc (NASDAQ:ASTS) is trading 1.6% higher at $88.21 this afternoon, headed for its fifth-straight pop. ASTS hit a five-month low of $63.43 last week, but is holding tight to its impressive year-over-year gain of 257%. More upward momentum could be in store, with a historic bull signal now flashing on the charts.
The shares have toppled their 50-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event happened 10 other times over the last 10 years, after which ASTS was higher one month later roughly 70% of the time, averaging an 45.5% gain. From its current perch, a move of this magnitude would put the shares above $128 for the first time since late January.
Shorts are still firmly in control, with 19.6% of the stock's available float sold short. The 53.99 million shares have seen a rise of 16.8% over the past two reporting periods and would take almost four days to cover, at ASTS' average pace of daily trading.
There also remains plenty of room for upgrades. Currently nine of the 13 brokerages in coverage sport a "hold" or "strong sell" recommendation, meaning should this bearish sentiment begin to unwind, it could trigger tailwinds for the satellite name.
— Originally published at finance.yahoo.com
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