As Earth can only offer a finite amount of land and resources for companies to operate on, more have begun to look upwards (literally) for industrial expansion. The vastness of outer space offers endless opportunities for economic growth which more companies have set their sights on. AST SpaceMobile (NASDAQ:ASTS) is one such issuer partaking in Earth’s development into the cosmos.
ASTS is a Texas satellite designer whose mission is launching its SpaceMobile satellite constellation to provide cellular coverage and internet access worldwide. Their space-based network would be one of the firsts and could revolutionize the cellular broadband industry. The company has recently secured deals with Vodafone Group and the US Space Development Agency to provide access to its satellites for cellular communication. The stock had a 11.7% price increase on 3/4/2025 after a better-than-expected earnings call. ASTS is still operating at a loss and continues to send more satellites into orbit with the help of SpaceX and Blue Origin.
The stock is currently popular among the short-selling community. Per Orbisa, the utilization increase from under 50% to 92% coincides with the price increase year-to-date from 21.75 to 32.50 per share. The Short Interest Indicator rose from 14% to 34% during this same period. ASTS has never garnered more attention from short sellers since its IPO in 2019.
ASTS Utilization vs Short Interest Indicator (1/2/2025-3/10/2025)
Source: Interactive Brokers Securities Lending Dashboard. Data is provided by Orbisa.
Current IBKR clients can receive a free trial of the Securities Lending dashboard by clicking here. IBKR has nearly 200,000 Shortable Shares at an annualized borrow fee of 1.28%. We are seeing locates from eight different securities lending counterparties including an agent lender and a middle-market prime broker. Short position holders are also paid Short Credit Interest at an interest rate of up to 4.08% for US positions.
Short sellers will likely continue paying attention to the firm’s future endeavors as ASTS launches more satellites in the coming years. The efficiency, effectiveness, and cost of the satellites and broadband networks will be analyzed to see if the company’s mission is sustainable.
ASTS Short History (2/11/2025-3/10/2025)
Disclosure: Interactive Brokers
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