ASML (NASDAQ:ASML) Shares Down 6.9% – Here’s Why

ASML Holding N.V. (NASDAQ:ASML) shares fell 6.9% during mid-day trading on Thursday. The company traded as low as $1,555.94 and last traded at $1,560.54. 2,022,628 shares were traded during trading, an increase of 16% from the average daily volume of 1,748,768 shares. The stock had previously closed at $1,676.69.

ASML News Roundup

Here are the key news stories impacting ASML this week:

• Positive Sentiment: ASML’s extreme ultraviolet (EUV) lithography systems remain effectively unrivaled, and reports indicate its EUV machines are sold out through 2028. This supports strong visibility for revenue and reinforces the company’s strategic importance to advanced-chip manufacturers. Chinese Competitors Aren’t Eroding ASML’s EUV Core Monopoly
• Positive Sentiment: AI-related chip demand continues to exceed industry supply. ASML’s outlook suggests shortages in logic and memory chips could persist at least through 2028, benefiting equipment demand and customers such as Nvidia and Micron. ASML Has Incredible News for Nvidia Stock and Micron Stock Investors
• Positive Sentiment: Higher pricing for critical EUV machines is expected to begin in 2027 and have its full effect in 2028. Combined with upgrade-kit sales and an accelerated €4.1 billion third-quarter buyback, this points to potential margin and earnings-per-share expansion. ASML: New Pricing Power Makes The 28x Multiple A Bargain
• Neutral Sentiment: ASML is featured in Invesco’s new QQI international-innovators ETF, which could increase exposure to the stock, although the fund’s higher costs and lower liquidity limit the immediate investment significance. Invesco’s ETF Targets International Innovators
• Negative Sentiment: Chip-equipment stocks are declining after Lam Research warned that supply constraints could limit its outlook. The concern is spreading to Applied Materials and ASML, raising near-term worries about industry bottlenecks despite record demand. Lam Research Supply Warning Pressures Chip Equipment Stocks

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Susquehanna restated a “positive” rating on shares of ASML in a research note on Tuesday, June 30th. Argus set a $2,100.00 target price on shares of ASML in a research report on Thursday, July 16th. Sanford C. Bernstein upped their target price on shares of ASML from $1,971.00 to $2,623.00 and gave the company an “outperform” rating in a research note on Monday, July 6th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of ASML in a research report on Friday, July 10th. Finally, DZ Bank upgraded shares of ASML from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Three analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, ASML has a consensus rating of “Moderate Buy” and a consensus price target of $2,079.12.

ASML Stock Down 6.9%

The firm’s 50-day simple moving average is $1,725.60 and its 200 day simple moving average is $1,682.05. The company has a market cap of $613.73 billion, a P/E ratio of 38.42, a PEG ratio of 0.68 and a beta of 1.77. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.01 and a current ratio of 1.49.

ASML (NASDAQ:ASML) last issued its earnings results on Sunday, September 27th. The semiconductor company reported $14.71 earnings per share (EPS) for the quarter. The firm had revenue of $13.27 billion for the quarter. ASML had a return on equity of 64.24% and a net margin of 34.10%. On average, research analysts forecast that ASML Holding N.V. will post 46.03 earnings per share for the current fiscal year.

ASML Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Stockholders of record on Tuesday, October 27th will be issued a $2.1077 dividend. This is a negative change from ASML’s previous quarterly dividend of $2.1507. The ex-dividend date of this dividend is Tuesday, October 27th. This represents a $8.43 annualized dividend and a dividend yield of 0.5%. ASML’s dividend payout ratio (DPR) is presently 17.90%.

Institutional Trading of ASML

Several hedge funds have recently added to or reduced their stakes in the business. BIP Wealth LLC increased its holdings in shares of ASML by 6.1% in the third quarter. BIP Wealth LLC now owns 1,154 shares of the semiconductor company’s stock worth $2,091,000 after acquiring an additional 66 shares in the last quarter. Private Wealth Partners LLC lifted its holdings in shares of ASML by 3.9% during the 3rd quarter. Private Wealth Partners LLC now owns 451 shares of the semiconductor company’s stock valued at $817,000 after purchasing an additional 17 shares in the last quarter. Boomfish Wealth Group LLC lifted its holdings in shares of ASML by 3.7% during the 3rd quarter. Boomfish Wealth Group LLC now owns 2,572 shares of the semiconductor company’s stock valued at $4,660,000 after purchasing an additional 91 shares in the last quarter. Demars Financial Group LLC grew its position in shares of ASML by 11.5% in the 3rd quarter. Demars Financial Group LLC now owns 145 shares of the semiconductor company’s stock valued at $264,000 after purchasing an additional 15 shares during the period. Finally, Compass Wealth Management LLC acquired a new position in shares of ASML in the 3rd quarter valued at approximately $159,000. Institutional investors and hedge funds own 26.07% of the company’s stock.

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 helps customers transfer intricate circuit patterns onto silicon wafers, a critical step in the production of processors, memory chips and other semiconductor devices.

ASML’s product portfolio includes extreme ultraviolet (EUV) lithography systems, which support the production of the most advanced chips, as well as deep ultraviolet (DUV) lithography systems for a broad range of semiconductor applications.