ASML (NASDAQ:ASML) Stock Price Down 13.1% - What's Next?

ASML Holding (NASDAQ:ASML) experienced a significant decline in its stock price, which fell by 13.1% during mid-day trading on Tuesday. The stock saw prices drop to as low as $742.78 before last trading at $757.60. During this period, around 1,749,829 shares were exchanged, marking a notable increase of 40% compared to the average daily volume of 1,252,310 shares. The previous closing price was $872.27.

Wall Street Analysts Forecast Growth

Despite the downturn in stock price, ASML has continued to be a focal point of discussion among analysts. In a recent report, Barclays upgraded ASML from an "equal weight" rating to an "overweight" rating on July 30. Meanwhile, JPMorgan Chase & Co. increased their price target for ASML shares from $1,202.00 to $1,207.00, while also assigning an "overweight" rating on October 9. On the other hand, Susquehanna reduced its target price from $1,300.00 to $1,100.00, maintaining a "positive" outlook for the stock. UBS Group, however, changed its stance by lowering ASML from a "buy" rating to a "neutral" rating on September 4. Additionally, Berenberg Bank rated ASML as a "strong buy" on October 2. Overall, three analysts recommend holding the stock, nine suggest buying it, and two have given it a strong buy rating. According to MarketBeat.com, ASML boasts a consensus rating of "Moderate Buy" and an average price target of $1,071.80.

ASML Stock Performance

The stock has a 50-day moving average of $846.01 and a 200-day moving average of $923.22. Financial metrics indicate a quick ratio of 0.84, a current ratio of 1.52, and a modest debt-to-equity ratio of 0.31. ASML holds a market capitalization of $285.45 billion and a price-to-earnings ratio of 38.69, along with a P/E/G ratio of 2.08, and a beta of 1.48.

Latest Earnings Insights

ASML last revealed its quarterly earnings results on July 17, where it reported an EPS of $4.01, beating the consensus estimate of $3.87 by $0.14. The company generated $6.24 billion in revenue, surpassing expectations of $6 billion. Despite a strong net margin of 26.50% and high return on equity of 49.93%, ASML saw its revenue decrease by 9.5% year-over-year compared to the same quarter last year, where the EPS stood at $5.37. Analysts are predicting ASML Holding will post an EPS of 20.38 for the current year.

ASML Increases Dividend

In addition to stock performance discussions, ASML recently announced an increase in its quarterly dividend, paid out on August 7. Shareholders of record as of July 29 received a dividend of $1.8732 per share, up from a previous quarterly dividend of $1.34. This equates to an annualized dividend of $7.49, providing a dividend yield of 1.04%. The dividend payout ratio is currently reported at 28.50%.

Institutional Investors' Involvement

Recent movements among institutional investors indicate varying levels of interest in ASML. NBC Securities Inc. expanded its stake by 38.1% in the third quarter, now owning 116 shares worth $96,000 after acquiring 32 additional shares. Boomfish Wealth Group LLC increased its position by 11.6%, amassing 2,868 shares valued at $2,390,000 after buying 298 more shares. Similarly, Creative Planning raised its holdings by 2.6%, owning 26,866 shares worth $22,386,000 following an addition of 669 shares. Harrington Investments INC increased its stake by a notable 51.5%, owning 647 shares valued at $539,000 after acquiring 220 additional shares. Lastly, Grove Bank & Trust grew its stakes by 22.2%, now holding 253 shares valued at $211,000 after purchasing 46 more shares. Overall, institutional investors hold approximately 26.07% of ASML's stock.

Overview of ASML Company

ASML Holding N.V. specializes in the development, production, marketing, and service of advanced semiconductor manufacturing equipment for chipmakers. Their offerings include high-tech systems for lithography, metrology, and inspection, as well as extreme ultraviolet and deep ultraviolet lithography systems, supporting diverse semiconductor nodes and technologies.

Final Thoughts

With the current fluctuations in ASML's stock price and various market assessments, investors are weighing their options regarding the future of their holdings. While some analysts continue to advocate for potential growth, the questions surrounding ASML's strategic direction and market performance create a complex landscape for decision-making. Investors should remain informed and consider conducting further research into the stock before making any decisions.

Stocks, ASML, Earnings