Advanced Energy Industries (NASDAQ:AEIS) Shares Down 8.3% - Here's Why

Key Points

• Advanced Energy Industries shares fell 8.3% to about $239 during Thursday trading, with volume down 92% from the average daily level.
• Despite the decline, analysts remain bullish: the stock has a consensus “Moderate Buy” rating and an average price target of $409.50, well above its current price.
• The company recently exceeded quarterly expectations, reporting $2.74 in EPS versus $2.21 expected and revenue of $574.1 million, up 30% year over year; however, insiders sold about $8.6 million of stock over the past 90 days.

Advanced Energy Industries, Inc. (NASDAQ:AEIS - Get Free Report)'s share price was down 8.3% during mid-day trading on Thursday. The stock traded as low as $238.98 and last traded at $239.0960. 56,257 shares changed hands during trading, a decline of 92% from the average daily volume of 741,833 shares. The stock had previously closed at $260.77.

Wall Street Analysts Forecast Growth

AEIS has been the subject of a number of analyst reports. Wells Fargo & Company raised Advanced Energy Industries from an "equal weight" rating to an "overweight" rating and boosted their price target for the stock from $345.00 to $465.00 in a research report on Wednesday, July 1st. Needham & Company LLC reaffirmed a "buy" rating and set a $400.00 price objective on shares of Advanced Energy Industries in a research report on Tuesday, August 4th. Wall Street Zen raised shares of Advanced Energy Industries from a "hold" rating to a "buy" rating in a report on Saturday, June 27th. Bank of America boosted their price target on Advanced Energy Industries from $430.00 to $450.00 and gave the company a "buy" rating in a research note on Tuesday, June 23rd. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Advanced Energy Industries in a research note on Wednesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Advanced Energy Industries presently has a consensus rating of "Moderate Buy" and a consensus price target of $409.50.

Advanced Energy Industries Stock Down 8.1%

The firm has a market cap of $9.60 billion, a P/E ratio of 44.79 and a beta of 1.31. 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 50 day moving average is $287.42 and its two-hundred day moving average is $317.40.

Advanced Energy Industries (NASDAQ:AEIS - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The electronics maker reported $2.74 EPS for the quarter, beating analysts' consensus estimates of $2.21 by $0.53. The business had revenue of $574.10 million during the quarter, compared to analysts' expectations of $544.41 million. Advanced Energy Industries had a net margin of 10.77% and a return on equity of 20.75%. The firm's quarterly revenue was up 30.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.50 EPS. Advanced Energy Industries has set its Q3 2026 guidance at 2.750-3.250 EPS. As a group, research analysts anticipate that Advanced Energy Industries, Inc. will post 9.53 EPS for the current fiscal year.

Advanced Energy Industries Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 4th. Investors of record on Monday, August 24th were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Monday, August 24th. Advanced Energy Industries's dividend payout ratio (DPR) is presently 7.46%.

Insider Buying and Selling at Advanced Energy Industries

In related news, EVP Elizabeth Vonne sold 632 shares of the company's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $288.14, for a total value of $182,104.48. Following the completion of the transaction, the executive vice president directly owned 9,177 shares of the company's stock, valued at approximately $2,644,260.78. This represents a 6.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Eduardo Acebedo sold 24,771 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $315.48, for a total value of $7,814,755.08. Following the transaction, the chief operating officer owned 23,109 shares of the company's stock, valued at approximately $7,290,427.32. This trade represents a 51.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 27,218 shares of company stock worth $8,562,008 over the last ninety days. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Advanced Energy Industries

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. PDT Partners LLC acquired a new position in shares of Advanced Energy Industries during the 2nd quarter worth about $23,188,000. Reinhart Partners LLC. acquired a new stake in Advanced Energy Industries in the 2nd quarter valued at about $3,433,000. Troluce Capital Advisors LLC acquired a new stake in Advanced Energy Industries in the 2nd quarter valued at about $24,237,000. Pacer Advisors Inc. acquired a new stake in Advanced Energy Industries in the 1st quarter valued at about $1,939,000. Finally, Tidal Investments LLC grew its holdings in Advanced Energy Industries by 150.6% during the second quarter. Tidal Investments LLC now owns 132,991 shares of the electronics maker's stock worth $49,588,000 after purchasing an additional 79,915 shares during the period. 99.67% of the stock is owned by institutional investors.

Advanced Energy Industries Company Profile

Advanced Energy Industries, Inc NASDAQ: AEIS designs and manufactures precision power-conversion, measurement and control technologies. Its products help customers generate, convert, deliver and manage electrical power with high levels of efficiency, reliability and accuracy.

The company's offerings include AC-DC and DC-DC power supplies, high-voltage power systems, radio-frequency power products, power-control equipment and precision measurement instruments. These products are used in semiconductor and electronics manufacturing equipment, industrial and medical applications, telecommunications, data centers, renewable energy systems and other demanding environments.

Founded in 1981, Advanced Energy serves a global customer base through operations and sales activities across North America, Europe and Asia.

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