ASML (NASDAQ:ASML) Stock Falls 2.5% – Here’s Why

ASML Holding N.V. (NASDAQ:ASML) shares traded down 2.5% on Monday. The stock traded as low as $1,518.00 and last traded at $1,526.14. Approximately 1,811,045 shares were traded during trading, an increase of 4% from the average daily volume of 1,741,249 shares. The stock had previously closed at $1,565.90.

Trending Headlines about ASML

Here are the key news stories impacting ASML this week:

• Positive Sentiment: ASML’s EUV lithography tools are important for producing advanced chips used in AI applications, and coverage highlights rising demand for its equipment. An article also describes ASML’s hybrid-bonding efforts as a competitive threat to equipment maker Besi, suggesting potential to broaden ASML’s role in chip manufacturing. Article: Better AI Semiconductor Monopoly Stock: Taiwan Semiconductor vs. ASML Article: Besi stock faces ASML hybrid-bonding risk after BofA downgrade
• Neutral Sentiment: ASML has been attracting investor attention, but the trending-stock coverage does not identify a fresh business development or forecast change that would independently drive the shares. Article: ASML Holding N.V. Is a Trending Stock
• Negative Sentiment: Despite AI-driven demand and EUV leadership, recent analysis cautions that production capacity limitations and execution risks could constrain growth. It also notes ASML’s strong prior-year share gains, which may leave investors more sensitive to any disappointment. Article: ASML Surges 48% in the Past Year: How Should You Play the Stock Now?

Wall Street Analyst Weigh In

Several equities research analysts have commented on ASML shares. JPMorgan Chase & Co. cut their price objective on ASML from $2,400.00 to $2,350.00 and set an “overweight” rating for the company in a research note on Thursday, October 15th. UBS Group restated a “buy” rating on shares of ASML in a research report on Monday, September 28th. Wells Fargo & Company raised their target price on ASML from $2,200.00 to $2,500.00 and gave the company an “overweight” rating in a research report on Thursday, July 16th. Barclays reaffirmed an “overweight” rating on shares of ASML in a research note on Thursday, July 16th. Finally, Jefferies Financial Group reiterated a “neutral” rating on shares of ASML in a research report on Wednesday, September 30th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $2,079.12.

ASML Stock Down 3.6%

The stock has a market capitalization of $576.70 billion, a price-to-earnings ratio of 38.21, a price-to-earnings-growth ratio of 0.64 and a beta of 1.80. The company has a quick ratio of 1.01, a current ratio of 1.49 and a debt-to-equity ratio of 0.09. The business’s 50-day moving average is $1,691.24 and its two-hundred day moving average is $1,599.37.

ASML (NASDAQ:ASML) last released its quarterly earnings data on Sunday, September 27th. The semiconductor company reported $14.71 EPS for the quarter. ASML had a net margin of 34.10% and a return on equity of 64.24%. The company had revenue of $13.27 billion during the quarter. Equities analysts anticipate that ASML Holding N.V. will post 46.54 EPS for the current year.

ASML Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Stockholders of record on Tuesday, October 27th will be given a $2.1077 dividend. This represents a $8.43 dividend on an annualized basis and a dividend yield of 0.6%. This is a drop from ASML’s previous quarterly dividend of $2.1507. The ex-dividend date is Tuesday, October 27th. ASML’s dividend payout ratio (DPR) is currently 17.55%.

Hedge Funds Weigh In On ASML

Institutional investors have recently added to or reduced their stakes in the stock. Van ECK Associates Corp grew its holdings in shares of ASML by 31.7% in the second quarter. Van ECK Associates Corp now owns 2,459,420 shares of the semiconductor company’s stock valued at $4,892,869,000 after purchasing an additional 592,125 shares during the period. BlackRock Inc. raised its stake in 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 period. Arrowstreet Capital Limited Partnership raised its stake in ASML by 6.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,641,565 shares of the semiconductor company’s stock worth $2,168,227,000 after purchasing an additional 96,860 shares during the period. Bank of America Corp DE raised its stake in ASML by 1.2% during the first quarter. Bank of America Corp DE now owns 1,560,256 shares of the semiconductor company’s stock worth $2,060,833,000 after purchasing an additional 19,051 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in 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. Hedge funds and other institutional investors 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.