Advanced Energy Industries (NASDAQ:AEIS) Shares Down 8.3% - Should You Sell?

Key Points

• Advanced Energy Industries shares fell 8.3% to about $319.82 in low-volume midday trading, bringing the stock below its 50-day and 200-day moving averages.
• Despite the decline, analyst sentiment remains positive: AEIS has a consensus “Moderate Buy” rating and an average price target of $409.50, with recent target increases from Morgan Stanley and TD Cowen.
• The company reported strong quarterly results, with EPS of $2.74 and revenue of $574.1 million, beating estimates and marking 30% year-over-year revenue growth. It also declared a quarterly dividend of $0.10 per share, yielding approximately 0.1%.

Advanced Energy Industries, Inc. (NASDAQ:AEIS - Get Free Report) shares dropped 8.3% during mid-day trading on Tuesday . The company traded as low as $318.02 and last traded at $319.8230. 55,609 shares changed hands during trading, a decline of 93% from the average daily volume of 801,471 shares. The stock had previously closed at $348.63.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on AEIS shares. Morgan Stanley upped their target price on Advanced Energy Industries from $421.00 to $439.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 4th. Weiss Ratings lowered Advanced Energy Industries from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, May 29th. TD Cowen boosted their price target on Advanced Energy Industries from $350.00 to $370.00 and gave the company a "hold" rating in a research note on Tuesday, August 4th. Needham & Company LLC restated a "buy" rating and issued a $400.00 price objective on shares of Advanced Energy Industries in a report on Tuesday, August 4th. Finally, Wall Street Zen raised shares of Advanced Energy Industries from a "hold" rating to a "buy" rating in a research report on Saturday, June 27th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $409.50.

Advanced Energy Industries Stock Down 9.8%

The stock has a market cap of $12.60 billion, a P/E ratio of 58.80 and a beta of 1.29. The company has a current ratio of 3.79, a quick ratio of 2.94 and a debt-to-equity ratio of 0.78. The firm's fifty day moving average is $323.22 and its 200 day moving average is $325.87.

Advanced Energy Industries (NASDAQ:AEIS - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The electronics maker reported $2.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.21 by $0.53. Advanced Energy Industries had a net margin of 10.77% and a return on equity of 20.75%. The company had revenue of $574.10 million during the quarter, compared to analysts' expectations of $544.41 million. During the same period in the prior year, the company earned $1.50 earnings per share. The business's quarterly revenue was up 30.0% compared to the same quarter last year. Advanced Energy Industries has set its Q3 2026 guidance at 2.750-3.250 EPS. As a group, equities research analysts forecast that Advanced Energy Industries, Inc. will post 9.18 EPS for the current year.

Advanced Energy Industries Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Monday, August 24th will be given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.1%. The ex-dividend date of this dividend is Monday, August 24th. Advanced Energy Industries's payout ratio is currently 7.46%.

Institutional Trading of Advanced Energy Industries

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kemnay Advisory Services Inc. acquired a new position in shares of Advanced Energy Industries during the fourth quarter worth approximately $25,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Advanced Energy Industries in the second quarter worth $27,000. Bayforest Capital Ltd acquired a new stake in shares of Advanced Energy Industries in the fourth quarter worth $29,000. Whittier Trust Co. of Nevada Inc. bought a new position in Advanced Energy Industries during the first quarter worth $29,000. Finally, Twin Tree Management LP bought a new position in Advanced Energy Industries during the fourth quarter worth $32,000. Institutional investors and hedge funds own 99.67% of the company's stock.

About Advanced Energy Industries

Advanced Energy Industries, Inc is a global technology company specializing in precision power conversion, measurement, and control solutions. The company designs and manufactures a broad portfolio of products including high-voltage power supplies, RF and microwave generators, digital power controllers, reactive gas control systems, and thin film measurement instruments. These solutions enable advanced processes in semiconductor fabrication, flat panel display manufacturing, industrial coating, data storage, telecommunications and medical device production.

Founded in 1981 and headquartered in Fort Collins, Colorado, Advanced Energy has grown through strategic product development and international expansion.

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