ASML (NASDAQ:ASML) Trading Down 4.5% on Analyst Downgrade

Key Points

• ASML's stock price fell by 4.5% to $936.19 following a downgrade to a "hold" rating by Bank Degroof.
• Multiple analysts have mixed ratings on ASML, with two recommending a Strong Buy and an average target price of $1,001.60.
• ASML recently announced a quarterly dividend increase, raising its annualized dividend to $7.42 with a yield of 0.8%.

ASML Holding N.V. (NASDAQ:ASML - Get Free Report)'s share price dropped 4.5% on Friday after Bank Degroof downgraded the stock to a hold rating. The company traded as low as $935.41 and last traded at $936.19. Approximately 2,911,635 shares were traded during mid-day trading, an increase of 71% from the average daily volume of 1,706,484 shares. The stock had previously closed at $980.54.

Several other equities research analysts have also recently commented on ASML. Morningstar cut shares of ASML to a "hold" rating in a research report on Thursday, September 18th. Arete Research upgraded shares of ASML to a "strong-buy" rating in a research note on Friday, September 12th. Sanford C. Bernstein restated a "market perform" rating and set a $935.00 price objective on shares of ASML in a research note on Thursday. Wells Fargo & Company boosted their price objective on shares of ASML from $840.00 to $890.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Finally, JPMorgan Chase & Co. upped their price target on shares of ASML from $957.00 to $1,175.00 and gave the company an "overweight" rating in a research note on Monday. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,001.60.

Hedge Funds Weigh In On ASML

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Lineweaver Wealth Advisors LLC lifted its stake in ASML by 30.6% in the 3rd quarter. Lineweaver Wealth Advisors LLC now owns 888 shares of the semiconductor company's stock valued at $860,000 after purchasing an additional 208 shares during the last quarter. Thomasville National Bank increased its position in ASML by 2.2% in the 3rd quarter. Thomasville National Bank now owns 42,046 shares of the semiconductor company's stock valued at $40,704,000 after acquiring an additional 925 shares during the period. Foster Victor Wealth Advisors LLC increased its position in ASML by 15.6% in the 3rd quarter. Foster Victor Wealth Advisors LLC now owns 756 shares of the semiconductor company's stock valued at $780,000 after acquiring an additional 102 shares during the period. Red Door Wealth Management LLC increased its position in ASML by 52.7% in the 3rd quarter. Red Door Wealth Management LLC now owns 5,810 shares of the semiconductor company's stock valued at $5,625,000 after acquiring an additional 2,006 shares during the period. Finally, Trust Point Inc. increased its position in ASML by 20.6% in the 3rd quarter. Trust Point Inc. now owns 930 shares of the semiconductor company's stock valued at $900,000 after acquiring an additional 159 shares during the period. Institutional investors own 26.07% of the company's stock.

ASML Stock Performance

The company has a current ratio of 1.43, a quick ratio of 0.81 and a debt-to-equity ratio of 0.21. The company's 50-day simple moving average is $829.12 and its 200-day simple moving average is $760.64. The stock has a market capitalization of $368.32 billion, a price-to-earnings ratio of 39.07, a PEG ratio of 1.67 and a beta of 1.87.

ASML (NASDAQ:ASML - Get Free Report) last announced its quarterly earnings results on Wednesday, July 16th. The semiconductor company reported $4.55 earnings per share (EPS) 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 during the quarter, compared to analyst estimates of $8.72 billion. During the same quarter last year, the company posted $4.01 earnings per share. The company's revenue was up 23.2% compared to the same quarter last year. ASML has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, analysts expect that ASML Holding N.V. will post 25.17 EPS for the current year.

ASML Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 6th. Investors of record on Tuesday, July 29th were given a $1.856 dividend. This represents a $7.42 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, July 29th. This is a positive change from ASML's previous quarterly dividend of $1.64. ASML's dividend payout ratio is presently 26.17%.

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.

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