ASML (NASDAQ:ASML) Shares Down 1.9% – Should You Sell?

ASML Holding N.V. (NASDAQ:ASML)’s stock price was down 1.9% during mid-day trading on Tuesday. The company traded as low as $1,682.02 and last traded at $1,717.76. 1,557,510 shares changed hands during mid-day trading, a decline of 11% from the average session volume of 1,748,375 shares. The stock had previously closed at $1,750.24.

Trending Headlines about ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: AI demand remains far ahead of supply. ASML said customer demand for its advanced lithography systems is already booked well into 2030, while currently planned capacity is insufficient to meet demand through 2028. The company is expanding production, particularly for EUV and memory-related equipment, supporting expectations for sustained growth. ASML’s sold out outlook forces investors to look beyond demand
• Positive Sentiment: ASML delivered a major earnings beat and raised its outlook. Third-quarter EPS was reported at $14.89 versus consensus of $12.17, while revenue rose 55.2% year over year to approximately $13.05 billion. Fourth-quarter revenue guidance of $16.3 billion-$17.5 billion exceeded estimates, and full-year guidance was also raised. Gross margin reached 57.5%, above the prior outlook. ASML earnings report
• Positive Sentiment: Profitability and shareholder returns could improve. Strong pricing, wider margins, potential dividend growth and share buybacks are reinforcing the bullish case. JPMorgan maintained an “overweight” rating and still sees substantial upside despite reducing its price target to $2,350. ASML Can’t Keep Up With AI Demand
• Neutral Sentiment: The earnings picture was mixed. Although EPS exceeded expectations, revenue came in slightly below consensus. ASML’s inability to immediately fulfill orders means demand is strong, but near-term revenue conversion depends on factory expansion and supply-chain execution. ASML Q3 earnings beat on strong upgrade demand
• Negative Sentiment: Valuation, costs and market conditions are limiting the reaction. Investors remain concerned about ASML’s premium valuation, rising capacity costs, China-related restrictions and geopolitical risks involving Taiwan. A continuing selloff in semiconductor stocks and broader macroeconomic caution have also pressured the shares despite the strong results. Should You Trade ASML Stock With Caution

Analysts Set New Price Targets

A number of brokerages recently weighed in on ASML. UBS Group reaffirmed a “buy” rating on shares of ASML in a research report on Monday, September 28th. Citigroup reiterated a “buy” rating on shares of ASML in a research note on Friday, July 17th. Morgan Stanley reiterated an “overweight” rating on shares of ASML in a report on Tuesday, July 7th. Bank of America increased their price target on shares of ASML from $2,268.00 to $2,345.00 and gave the company a “buy” rating in a research report on Monday, June 22nd. Finally, Wells Fargo & Company raised their price target on shares of ASML from $2,200.00 to $2,500.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. Three analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $2,079.12.

ASML Stock Performance

The business has a 50-day moving average price of $1,742.04 and a 200-day moving average price of $1,668.37. The firm has a market capitalization of $651.84 billion, a price-to-earnings ratio of 51.57, a P/E/G ratio of 0.77 and a beta of 1.77. The company has a quick ratio of 0.80, a current ratio of 1.33 and a debt-to-equity ratio of 0.09.

ASML (NASDAQ:ASML) last issued its quarterly earnings data on Sunday, September 27th. The semiconductor company reported $14.71 EPS for the quarter. The firm had revenue of $13.27 billion during the quarter. ASML had a return on equity of 52.71% and a net margin of 30.11%. As a group, sell-side analysts forecast that ASML Holding N.V. will post 43.70 earnings per share for the current year.

Institutional Trading of ASML

A number of institutional investors have recently bought and sold shares of ASML. Van ECK Associates Corp lifted its stake in ASML by 31.7% during the second quarter. Van ECK Associates Corp now owns 2,459,420 shares of the semiconductor company’s stock worth $4,892,869,000 after purchasing an additional 592,125 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in ASML by 6.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,641,565 shares of the semiconductor company’s stock worth $2,168,227,000 after acquiring an additional 96,860 shares in the last quarter. Bank of America Corp DE boosted its stake in ASML by 1.2% in the first quarter. Bank of America Corp DE now owns 1,560,256 shares of the semiconductor company’s stock valued at $2,060,833,000 after acquiring an additional 19,051 shares in the last quarter. BlackRock Inc. grew its holdings in shares of ASML by 4.9% during the second quarter. BlackRock Inc. now owns 1,282,190 shares of the semiconductor company’s stock worth $2,550,840,000 after purchasing an additional 59,888 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of ASML by 1.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,033,583 shares of the semiconductor company’s stock valued at $1,364,963,000 after purchasing an additional 18,768 shares during the last quarter. 26.07% of the stock is currently owned by institutional investors and hedge funds.

About ASML

ASML Holding N.V. is a Netherlands-based technology company that develops and manufactures advanced lithography systems used by semiconductor manufacturers to produce integrated circuits. Its equipment projects patterns onto silicon wafers, enabling the creation of increasingly smaller and more powerful semiconductor features.

ASML’s product portfolio includes extreme ultraviolet (EUV) lithography systems, deep ultraviolet (DUV) lithography systems, and related metrology and inspection solutions.