AST SpaceMobile, Inc. (NASDAQ:ASTS) surges 10.0%; retail investors who own 69% shares profited along with institutions

Key Insights

• AST SpaceMobile's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 27% ownership
• Institutional ownership in AST SpaceMobile is 26%

Every investor in AST SpaceMobile, Inc. (NASDAQ:ASTS) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 69% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Retail investors gained the most after market cap touched US$927m last week, while institutions who own 26% also benefitted.

Let's take a closer look to see what the different types of shareholders can tell us about AST SpaceMobile.

Check out our latest analysis for AST SpaceMobile

What Does The Institutional Ownership Tell Us About AST SpaceMobile?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in AST SpaceMobile. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of AST SpaceMobile, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in AST SpaceMobile. The Vanguard Group, Inc. is currently the company's largest shareholder with 3.2% of shares outstanding. The second and third largest shareholders are American Tower Corporation and Rakuten Group, Inc., with an equal amount of shares to their name at 2.8%.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of AST SpaceMobile

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in AST SpaceMobile, Inc.. It has a market capitalization of just US$927m, and insiders have US$19m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- including retail investors -- own 69% of AST SpaceMobile. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand AST SpaceMobile better, we need to consider many other factors. For example, we've discovered 3 warning signs for AST SpaceMobile (1 is potentially serious!) that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.