ASE Technology (NYSE:ASX) Stock Sees Unusually High Call Option Buying

Key Points

• Unusually high options activity: Investors purchased 55,471 ASE Technology call options, about 719% above the average daily volume of 6,771 contracts.
• Shares gained 2% to $47.38 in Monday trading, near the company’s 12-month high of $47.93. The stock has a market capitalization of approximately $105.9 billion and a P/E ratio of 55.12.
• Analyst sentiment remains positive: Despite one downgrade to “hold,” other firms upgraded ASE Technology, and MarketBeat reports a consensus “Buy” rating. The company also exceeded quarterly EPS expectations, reporting $0.29 versus the $0.23 consensus estimate.

ASE Technology Holding Co., Ltd. (NYSE:ASX - Get Free Report) saw unusually large options trading activity on Monday. Stock investors bought 55,471 call options on the company. This is an increase of approximately 719% compared to the average daily volume of 6,771 call options.

ASE Technology Stock Up 2.0%

NYSE:ASX traded up $0.95 during midday trading on Monday, reaching $47.38. 3,825,601 shares of the stock traded hands, compared to its average volume of 8,484,306. ASE Technology has a 12-month low of $11.21 and a 12-month high of $47.93. The business has a 50-day moving average of $40.21 and a two-hundred day moving average of $36.32. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.81 and a current ratio of 1.07. The stock has a market capitalization of $105.90 billion, a PE ratio of 55.12 and a beta of 1.66.

ASE Technology (NYSE:ASX - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.06. ASE Technology had a net margin of 8.52% and a return on equity of 16.12%. The business had revenue of $81.66 million for the quarter, compared to analyst estimates of $5.96 billion. On average, equities analysts forecast that ASE Technology will post 1.23 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Eastern Bank grew its holdings in ASE Technology by 10.5% during the third quarter. Eastern Bank now owns 2,339 shares of the semiconductor company's stock worth $104,000 after acquiring an additional 223 shares during the period. IFP Advisors Inc boosted its position in ASE Technology by 107.7% in the 2nd quarter. IFP Advisors Inc now owns 947 shares of the semiconductor company's stock worth $43,000 after purchasing an additional 491 shares in the last quarter. Valeo Financial Advisors LLC grew its stake in shares of ASE Technology by 5.1% during the 3rd quarter. Valeo Financial Advisors LLC now owns 12,242 shares of the semiconductor company's stock worth $544,000 after purchasing an additional 595 shares during the period. Ancora Advisors LLC acquired a new stake in shares of ASE Technology during the 2nd quarter worth approximately $33,000. Finally, Bessemer Group Inc. grew its stake in shares of ASE Technology by 135.4% during the 1st quarter. Bessemer Group Inc. now owns 1,438 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 827 shares during the period. 6.80% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on ASX shares. Wall Street Zen downgraded ASE Technology from a "buy" rating to a "hold" rating in a report on Saturday, September 19th. Zacks Research upgraded ASE Technology from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, September 22nd. Finally, Weiss Ratings raised ASE Technology from a "hold (c+)" rating to a "buy (b)" rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Buy".

ASE Technology Company Profile

ASE Technology Holding Co, Ltd. is a Taiwan-based provider of semiconductor manufacturing services. Through its subsidiaries, the company offers outsourced semiconductor assembly and testing (OSAT) services, helping chip manufacturers package and test integrated circuits before they are incorporated into electronic products.

Its services include wafer probing, wafer bumping, flip-chip and wire-bond packaging, system-in-package and other advanced packaging technologies, as well as final testing and related engineering services.

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