ASML (NASDAQ:ASML) Shares Gap Up - Should You Buy?

Key Points

• ASML shares gapped up at the market open, rising from a previous close of $872.27 to $928.67, and last traded at $933.10 with significant trading volume of over 1 million shares.
• The company recently reported quarterly earnings of $4.55 per share, missing analyst expectations, but still generated revenue of $8.94 billion, surpassing forecasts.
• ASML declared a quarterly dividend of $1.856, marking an increase from the prior $1.64, with an annualized yield of 0.8% and a payout ratio of 26.21%.

ASML Holding N.V. (NASDAQ:ASML - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $872.27, but opened at $928.67. ASML shares last traded at $933.10, with a volume of 1,073,377 shares changing hands.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ASML. JPMorgan Chase & Co. reiterated a "buy" rating on shares of ASML in a research note on Tuesday, September 16th. UBS Group raised ASML from a "neutral" rating to a "buy" rating in a research note on Friday, September 5th. Barclays reiterated a "neutral" rating on shares of ASML in a research note on Tuesday, September 16th. Arete Research upgraded ASML to a "strong-buy" rating in a report on Friday, September 12th. Finally, New Street Research raised ASML from a "neutral" rating to a "buy" rating in a research note on Thursday, July 24th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $923.80.

ASML Price Performance

The firm has a market cap of $366.73 billion, a PE ratio of 38.90, a P/E/G ratio of 2.10 and a beta of 1.80. The stock's fifty day moving average price is $759.67 and its 200-day moving average price is $734.86. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.81 and a current ratio of 1.43.

ASML (NASDAQ:ASML - Get Free Report) last released its earnings results on Wednesday, July 16th. The semiconductor company reported $4.55 earnings per share for the quarter, missing the consensus estimate of $5.94 by ($1.39). ASML had a net margin of 26.95% and a return on equity of 49.47%. The business had revenue of $8.94 billion for the quarter, compared to the consensus estimate of $8.72 billion. During the same quarter in the previous year, the firm earned $4.01 EPS. The firm's revenue for the quarter was up 23.2% on a year-over-year basis. ASML has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, equities analysts forecast that ASML Holding N.V. will post 25.17 EPS for the current fiscal year.

ASML Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 6th. Stockholders of record on Tuesday, July 29th were given a dividend of $1.856 per share. This represents a $7.42 dividend on an annualized basis and a dividend yield of 0.8%. This is a positive change from ASML's previous quarterly dividend of $1.64. The ex-dividend date was Tuesday, July 29th. ASML's dividend payout ratio is 26.21%.

Institutional Investors Weigh In On ASML

A number of hedge funds and other institutional investors have recently modified their holdings of ASML. Fisher Asset Management LLC boosted its stake in shares of ASML by 6.3% in the 2nd quarter. Fisher Asset Management LLC now owns 4,244,254 shares of the semiconductor company's stock worth $3,401,304,000 after buying an additional 250,934 shares during the last quarter. GAMMA Investing LLC grew its position in ASML by 70,115.5% during the 1st quarter. GAMMA Investing LLC now owns 1,400,800 shares of the semiconductor company's stock worth $9,282,120,000 after purchasing an additional 1,398,805 shares during the period. Goldman Sachs Group Inc. grew its position in shares of ASML by 26.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 952,385 shares of the semiconductor company's stock valued at $631,079,000 after acquiring an additional 199,740 shares during the period. Dimensional Fund Advisors LP lifted its stake in ASML by 0.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 905,708 shares of the semiconductor company's stock worth $600,175,000 after purchasing an additional 7,164 shares in the last quarter. Finally, Franklin Resources Inc. increased its holdings in ASML by 5.2% in the 2nd quarter. Franklin Resources Inc. now owns 763,590 shares of the semiconductor company's stock valued at $611,933,000 after purchasing an additional 37,994 shares during the last quarter. Institutional investors own 26.07% of the company's stock.

About ASML

ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems for chipmakers. It offers advanced semiconductor equipment systems, including lithography, metrology, and inspection systems. The company also provides extreme ultraviolet lithography systems; and deep ultraviolet lithography systems comprising immersion and dry lithography solutions to manufacture various range of semiconductor nodes and technologies.