ASML (NASDAQ:ASML) Trading Down 1.4% - Time to Sell?

Key Points

• ASML shares fell 1.4% to $1,629 in mid-day trading, with volume 17% below the average session level. The stock remains below its 50-day moving average but above its 200-day average.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,970.33. Erste Group also significantly raised its 2026 and 2027 earnings forecasts, signaling stronger expectations for chip-equipment demand.
• Valuation and competitive risks remain key concerns: ASML trades at a P/E ratio above 50, while Chinese DUV lithography competition and export controls could pressure sentiment. However, the company’s EUV leadership, backlog and planned DUV capacity expansion may limit near-term threats.

ASML Holding N.V. (NASDAQ:ASML - Get Free Report) fell 1.4% during mid-day trading on Friday . The company traded as low as $1,624.71 and last traded at $1,629.00. 1,594,256 shares traded hands during trading, a decline of 17% from the average session volume of 1,909,365 shares. The stock had previously closed at $1,651.44.

ASML News Roundup

Here are the key news stories impacting ASML this week:

• Positive Sentiment: Erste Group sharply raised its ASML earnings forecasts, projecting fiscal 2026 EPS of $44.50 versus $36.94 previously and fiscal 2027 EPS of $61.40 versus $50.60. The estimates exceed or approach the broader consensus and signal improving confidence in demand for ASML’s chipmaking equipment. Erste Group raises ASML earnings estimates
• Positive Sentiment: ASML received multiple Zacks Rank #1 “Strong Buy” designations, reflecting favorable earnings-revision and momentum indicators. ASML receives a Strong Buy rating
• Positive Sentiment: Semiconductor ETFs attracted substantial new money as chip stocks rallied on strong technology earnings, suggesting continued institutional interest in the industry that supplies AI infrastructure. Semiconductor ETFs draw investor cash
• Neutral Sentiment: Analysts maintain a consensus “Moderate Buy” view, but the stock’s elevated valuation leaves investors sensitive to execution, guidance and changes in AI-related capital spending. ASML analyst consensus rating
• Negative Sentiment: A Chinese competitor unveiled deep-ultraviolet lithography machines, renewing concerns about future competition and export-control pressure. ASML’s EUV technology leadership, substantial backlog and plans to expand advanced DUV capacity by about 30% suggest the near-term threat remains limited, but the development weighs on sentiment. China competition and ASML’s risks
• Negative Sentiment: One comparison with Taiwan Semiconductor concluded that TSMC currently offers a stronger valuation, price performance and analyst-sentiment profile, potentially limiting near-term enthusiasm for ASML. ASML versus TSMC comparison

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ASML. Bank of America upped their price objective on ASML from $2,268.00 to $2,345.00 and gave the company a "buy" rating in a report on Monday, June 22nd. Susquehanna restated a "positive" rating on shares of ASML in a report on Tuesday, June 30th. Sanford C. Bernstein upped their target price on ASML from $1,971.00 to $2,623.00 and gave the company an "outperform" rating in a report on Monday, July 6th. Morgan Stanley reissued an "overweight" rating on shares of ASML in a research note on Tuesday, July 7th. Finally, Weiss Ratings raised shares of ASML from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, ASML presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,970.33.

ASML Stock Down 1.4%

The company has a quick ratio of 0.80, a current ratio of 1.33 and a debt-to-equity ratio of 0.09. The firm has a market capitalization of $640.66 billion, a PE ratio of 50.68, a price-to-earnings-growth ratio of 0.79 and a beta of 1.78. The business's 50-day moving average price is $1,762.28 and its 200-day moving average price is $1,537.28.

ASML (NASDAQ:ASML - Get Free Report) last announced its quarterly earnings data on Sunday, June 28th. The semiconductor company reported $8.65 EPS for the quarter. The firm had revenue of $10.64 billion for the quarter. ASML had a net margin of 30.11% and a return on equity of 52.71%. As a group, equities research analysts predict that ASML Holding N.V. will post 43.6 EPS for the current fiscal year.

ASML Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 5th. Shareholders of record on Tuesday, July 28th will be paid a dividend of $2.1507 per share. The ex-dividend date of this dividend is Tuesday, July 28th. This represents a $8.60 dividend on an annualized basis and a dividend yield of 0.5%. ASML's dividend payout ratio (DPR) is 22.59%.

Hedge Funds Weigh In On ASML

A number of hedge funds have recently modified their holdings of ASML. Cornerstone Financial Management LLC acquired a new position in ASML in the 4th quarter worth about $26,000. Binnacle Investments Inc lifted its holdings in shares of ASML by 78.9% during the 2nd quarter. Binnacle Investments Inc now owns 34 shares of the semiconductor company's stock valued at $27,000 after buying an additional 15 shares during the last quarter. Resources Management Corp CT ADV lifted its holdings in shares of ASML by 1,150.0% during the 4th quarter. Resources Management Corp CT ADV now owns 25 shares of the semiconductor company's stock valued at $27,000 after buying an additional 23 shares during the last quarter. North Star Investment Management Corp. grew its stake in shares of ASML by 68.8% in the 4th quarter. North Star Investment Management Corp. now owns 27 shares of the semiconductor company's stock valued at $29,000 after buying an additional 11 shares in the last quarter. Finally, Jessup Wealth Management Inc acquired a new position in ASML in the fourth quarter worth approximately $30,000. 26.07% of the stock is owned by institutional investors and hedge funds.

About ASML

ASML Holding N.V. NASDAQ: ASML is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.

ASML's product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.